Sea Freight Shipping Explained: What Does Sea Freight Shipping Mean?

Sea freight shipping has significance since it transports an overwhelming majority of goods across wide oceans, connecting continents and economies. 

Sea freight is often dubbed the “life blood of world trade”, and remains to be the dominant mode of international transport for traded goods. 

Approximately 80% of the volume of international trade in goods is transported by sea, with this percentage being even higher for many developing countries. 

Sea Freight Shipping Explained_ What Does Sea Freight Shipping Mean

What is Sea Freight Shipping?

Sea freight, also known as ocean freight meaning in shipping or maritime shipping, is the transportation of goods across oceans and seas. 

It’s a popular and cost-effective method for shipping large quantities of goods over long distances.

Sea freight shipment is particularly suitable for transporting bulky or heavy goods that are not time-sensitive, such as raw materials, agricultural products, and manufactured goods.

How Does Sea Freight Work?

Freight shipping by sea involves a complicated process that needs careful planning and coordination. 

1. Booking

The shipper books space on a ship with a shipping company. 

This involves providing information about the shipment, such as the type, weight, dimensions, and destination. 

The shipping company will then confirm the booking and provide the shipper with a bill of lading. 

2. Documentation

The shipper prepares the necessary documentation for the shipment, including the bill of lading, commercial invoice, packing list, and customs declaration. 

These documents are essential for customs clearance and tracking the shipment. 

3. Loading

The goods are loaded onto the ship at the port of departure. 

This process involves careful planning and coordination to ensure that the goods are loaded safely and efficiently. 

4. Transportation

The ship transports the goods across the ocean to the destination port. 

The journey can take several weeks or even months, depending on the distance and the shipping route. 

5. Unloading

Once arrived at the destination port, the goods are unloaded from the ship. 

This process involves careful handling to prevent damage to the goods. 

6. Customs Clearance

The goods undergo customs clearance procedures before being released to the consignee, involving presenting the necessary documentation to customs officials and paying any applicable duties or taxes. 

7. Delivery

Once the goods have cleared customs, they are delivered to the co-signed. 

The delivery may be handled by the shipping company or by a local delivery service. 

What are the Different Types of Cargo Shipped through the Sea?

Bulk Cargo: Commodities that are shipping in large quantities, such as grains, ores, and coals. Bulk cargo is typically transported in specialized vessels, such as bulk carriers or tankers. 

Breakbulk Cargo: Manufactured goods that are shipped in individual pieces or packages. Breakbulk cargo is often transported in general cargo ships, which can accommodate a variety of cargo types. 

Containerized Cargo: Goods that are packed into standardized containers for efficient transportation. Containerized cargo is the most common type of sea freight, accounting for a significant portion of global trade. Containers are loaded onto container ships, which are designed to carry large numbers of containers. 

Project Cargo: Large, specialized equi[ment or machinery that requires special handling and transportation. Project cargo often requires specialized vessels or equipment to ensure safe and efficient transportation. 

Reefer Cargo: Perishable goods that require temperature-controlled transportation. Reefer cargo is transported in refrigerated containers or vessels to maintain the quality of the goods. 

Advantages of sea freight

Shipping via sea freight is generally more cost-effective than air freight, especially for large quantities of goods. Due to its economies of scale, sea freight can offer significant savings compared to other modes of transportation. 

Sea freight is ideal for transporting bulky or heavy goods that cannot be shipped by air. The large capacity of cargo ships allows for the efficient transportation of massive quantities of goods. 

Sea freight has a lower carbon footprint than air freight, making it a more sustainable option. Compared to air transportation, sea freight leads to significantly fewer greenhouse gasses, contributing to a reduced environmental impact. 

International freight shipping by sea is a reliable mode of transportation, with predictable transit times and fewer disruptions compared to other modes. 

While there may be occasional delays due to weather conditions, port congestion, or customs clearance issues, sea freight generally offers a more stable and predictable shipping option. 

Disadvantages of sea freight

Freight by sea typically takes significantly longer than air freight, which can be a disadvantage for time-sensitive shipments.

While sea freight is well-suited for transporting large quantities of goods over long distances, it may not be the best option for urgent deliveries or perishable goods. 

Once a ship has been deported, it is difficult to make changes to the shipment, such as adding or removing goods. This can be a challenge for businesses that need to make last-minute adjustments to their orders. 

By sea freight you can be subject to various delays, such as those caused by weather conditions, port congestion, or customs clearance issues. These delays can impact delivery times and increase costs. 

How Long Does Sea Freight Take?

The transit time for sea freight can vary significantly depending on the distance between the ports of departure and destination, the shipping route, and the type of ship used. 

However, as a general guideline, sea freight typically takes several weeks or even months for long-distance shipments. 

For example, a shipment from China to the United States could take anywhere from 3 to 6 weeks, while a shipment from Europe to Australia could take up to 8 weeks or more. 

It’s necessary to note that these are average transit times, and actual delivery times may vary depending on different factors such as port congestion, weather conditions, and customs clearance procedures. 

Additionally, the choice of shipping route can also impact transit times. Some routes may be shorter and faster than others, while others may involve transiting through multiple ports, which can increase the delivery time.  

How Much Does Sea Freight Cost?

The distance between the ports of departure and destination is a primary determinant of shipping costs. Longer distances typically result in higher freight rates. 

The weight and volume of the shipment are key factors in determining transportation costs. Heavier and bulkier shipments generally require larger vessels and more handling, leading to higher fees. 

The type of goods being shipped can influence pricing. 

Hazardous materials, perishable goods, or specialized equipment may require additional handling, insurance, or certifications, which can increase costs. 

Fluctuations in fuel prices can directly impact shipping costs. When fuel prices rise, freight rates tend to increase as well. 

Supply and demand factors, as well as economic conditions, can influence sea freight rates. During peak shipping seasons or periods of high demand, rates may be higher due to limited availability of shipping capacity. 

Fluctuations in currency exchange rates can affect shipping costs, especially for international shipments. Changes in exchange rates can impact the cost of goods purchased in foreign currencies and the cost of transportation services. 

Any additional fees might be applied based on peak season surcharges, fuel surcharges, or security fees. These surcharges can increase the overall cost of shipping. 

Is it Better to Ship by Sea or Air?

The choice between sea freight and air freight depends on a variety of factors, including the nature of the goods being shipped, the urgency of the shipment, and the cost sensitivity of the business. 

Sea freight is generally a better option for large, non-perishable shipments that are not time-sensitive. 

Air freight is a better option for smaller, time-sensitive shipments or high-value goods. 

FactorSea FreightAir Freight
CostGenerally lowerGenerally higher
Transit TimeLongerShorter
SuitabilityLarge, non-perishable shipmentsSmaller, time-sensitive shipments
Environmental impactLower carbon footprintHigher carbon footprint
FlexibilityLess flexibleMore flexible