Ocean and sea freight break down to two further options: a full container load (FCL) and a less than container load (LCL). The ocean freight does take a longer time than the air freight, and it is cheaper than the air freight. Generally, more products restricted as air cargo than ocean freight, including: gases (e.g. Sea freight is a method of transporting large quantities of product and heavy shipment via cargo ships. Why Choose Sea Freight Over Other Shipping Methods? It is a charge for handling containers at the destination port or terminal before being loaded onboard a vessel. perfume, Samsung Galaxy Note 7), toxic or corrosive items (e.g. – A shipping term that simply means moving freight short distances via truck. However, if you’ve gone past your free time, you’ll be charged a warehousing fee on your invoice. There is an increased risk of damage, misplacement, and loss with LCL. Ocean freight rates are usually determined based on a number of charges, such as the cost per weight of goods and the space they take up. By using this site, you agree to the use of cookies, Calculate Your Ocean/Sea Freight Shipping Rates. As for demurrage, it is a charges due to loss of equipment usage/time. You’ll also see an accompanying fuel surcharge from the ocean freight carrier: Ocean Fuel Surcharge – A surcharge used by a shipping line to offset the changing costs of their fuel. Ocean freight is the ocean shipping cost, and the ocean freight usually occurs when there is a huge order, which has to ship from one place to another. ), understanding exactly what you’ve been charged for can feel like a mystery—until now. – A charge incurred when the container is under your control and has not been returned. Ocean freight is around 50 cents/kg, and a China-US shipment will take around 30-40 days. In addition to these information, bill of lading indicates by whom the freight charges will be paid. Capacity and Value – One container can hold 10,000 beer bottles! 14 Supply Chain Buzzwords That Hint at the Future of Logistics, The Rise of Reverse Logistics: Optimizing All Links Across the Supply Chain, 8 Lessons 2020 Taught Us About Preventing Supply Chain Disruption, 4 Ways This Holiday Season Might Be Different for Retailers, We Are Open & Operational: COVID-19 Updates, How to Calculate Cubic Feet and Other Easy Freight Math, The Complete Guide to All 11 of the 2010 Incoterms Rules, A Spirit of Giving: The Story of the Balikbayan Box, Protect Your Bottom Line by Understanding These 5 Common Incoterms [with Printable PDF]. It is charged as a percentage of the sea freight. Freight: This is the base rate charged by the carriers. Broker Permit # MC-644445-B. Drop your email to get our logistics tech update list. It’s GBFXT, by the way. And for live international freight rates, check out the Freightos Baltic Index. We'll never spam you and you can always easily unsubscribe. As with the terminal handling and wharfage charges, your ocean freight charge is calculated on the volume of your shipment in cubic feet. And ocean freight is cheaper. It is a charge that may be applied when you use a High Cube container. Now, shipping from China to the United States, especially Ningbo and Shanghai. So, if you’re not ready to take possession of your shipment when it arrives, your forwarder can hold onto it for you. When you’re importing by sea freight you need to think about a few things – there’s naturally the cost of goods and the amount charged by the shipping company to move them. Freight and freight surcharges. Like transporting goods by land or air, ocean freight shipping is a mode of freight transportation by sea. For instance, ocean freight typically costs around 50 cents per kilogram (kg) 2. But since 2012, there has been a dramatic fall in sea-freight rates – more than 75% on some ocean shipping routes. Ocean freight is the most common mode of transport that importers and exporters use. You can use this free calculator to get instant ocean freight estimates. At about $6 per kilo, a China-US shipment will take around 3 days. Wharfage – A fee charged by the freight terminal solely to cover the use of the wharf to load or unload cargo. Because the industry is steeped in history and tradition. The large shipping containers that products are kept in are generally safe and secure and relatively inexpensive. Like the terminal handling charge, wharfage is also a pass-through charge that your forwarder is simply handing over without adding any extra on top. Additionally, if you sit on a quote from your freight forwarder, your cost is likely to change as the surcharge fluctuates. Looking for a long-term logistics partner? The Freightos Freight Team typically recommend allowing an extra one or two weeks. As a result, the industry developed this surcharge which allows them to compensate for current fuel costs. Pickup Fee. For example, according to this research, 2 tonnes shipped for 5,000 kilometers by ocean freight will lead to 150 kg of CO2 emissions, compared to 6,605 kg of CO2 emissions by air freight. Us too. For most products, use these rules of thumb for which selecting the most cost-effective mode: Shipments weighing more than 500 kg becomes uneconomic to go by air freight. Note: Even though it’s a U.S. territory, you’ll encounter an Invasive Species charge on items you import into Guam. Packages that are lighter than 150 kg can economically go by courier (express freight). Demand isn’t forecasted to reach supply levels until 2022, by some estimates. What is “Freight Collect”? No surprise then, that a shipment going by air freight from China to the US usually takes at least 20 days more than by ocean freight. Container Freight Station (these are the consolidation charges, and apply for LCL only), Terminal Handling charges (charges by the port authority), Accessorial charges (fuel surcharges, handling hazardous materials, storage, etc), Routing charges (e.g. Ocean freight invoices have a tendency to cause confusion for experienced and inexperienced shippers alike. Ocean freight is basically a commodity. Ocean freight charges are soaring worldwide. THC is the abbreviation for Terminal Handling Charge. Note: Fuel surcharges are, in part, based on an average fuel price reported by the government, which changes weekly. Protection – Ocean freight is more likely to get damaged or destroyed than air cargo. With the coronavirus, the market in container shipping has been turned on its head. For further information check out the Hazardous Material Table. If that’s the case, you will see a detention charge on your invoice. That’s why a quote from your forwarder is only valid for a specified amount of time. Ocean freight charges are soaring worldwide. – A charge for short-haul trucking to your final destination. 6 surprising things you might not know about ocean freight. Shipping by ocean freight is complicated however, so we’ve put together this shipping guide to ensure you have all bases covered – from Bills of Lading to Incoterms, and Container Ships to Insurance. Express air freight is a few days quicker, but more expensive. Recognized as leading International Freight Forwarder , Falcon offers all EXIM services like Customs clearance, logistic management, liaison services, and sourcing products from China. BAF (Bunker Adjustment Factor): This is also sometimes referred to as FAF, or Fuel Adjustment Factor. Finally, if you opt to have your shipment delivered to its final destination, as opposed to picking it up at the terminal, you’ll see a final charge on your invoice for: Drayage (or Delivery) – A charge for short-haul trucking to your final destination. With LCL, several shipments are packed into one container. For example, perhaps you had the container delivered to your warehouse, and you’re not able to unload it immediately. To kick off the ocean freight process, your goods need to move to a terminal so they can get loaded onto a ship. For light shipments, use this. Within every shipment, you are given a certain grace period to arrange for the delivery of your goods. This service is often nearly as quick as air freight, but it costs more like ocean freight. We use cookies (yum) to deliver personalized services. An effort to reduce pollution you to calculating costs and transit times surcharge ” or a “ Bunker fuel.! 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