CONTAINER MARKING SYSTEM GUIDELINES – SIZE, TYPE, AND CODE
Shipping goods by sea is the most cost-effective form of transport, Volumetric or Heavy goods shipping might be the only way to get goods overseas, as airlines can restrict the form of transport and shipping ports generally have large storage capabilities
EXW, FOB, CIF or DDU which kind of pricing will suit your business style. And Find out how much quantities can be shipped by different container sizes. For Special Cargo or oversized cargo, there are special Open containers.
- Cost-Effective – transporting containers of goods by ship is one of the most cost-effective forms of transport, which is important supply chain management and operations within a business and can help keep the price of goods competitive for your end customers
- Heavy goods – for items that are big or heavy, shipping might be the only way to get goods overseas, as airlines can restrict the form of transport and shipping ports generally have large storage capabilities
- Environmentally Friendly – ocean freight is the most environmentally friendly form of transport for cargo, which can help boost the companies brand and reputation
TYPES OF OCEAN FREIGHT
There are four major types of shipping terms that you should know about, also known as Incoterms (International Commerce Terms), which set out clear definitions for where the goods are dispatched from and to.
- EXW or ExWorks means the supplier transports the goods to the factory or manufacturer.
- FOB, or Free on Board, which delivers to the port or terminal in the country of the supplier.
- CIF, or Cost, Insurance and Freight, which covers transport to the buyer’s country
- DAP/ DDU, or Delivery at Port / Delivery and Duty, Unpaid, which delivers all the way to your facility or warehouse, excluding the cost of tariffs and taxes
WHAT NOT TO SHIP BY SEA FREIGHT:
The following goods cannot be transported by ship
HOW ARE GOODS SHIPPED?
Goods are loaded onto containers which are then shipped. There are several types of containers which come in different shapes and sizes, but we’ve highlighted the main three types of containers here:
- 20’GP = 20’DV = 20FT = 20′ = 20 feet general purpose
- 40’GP = 40’DV = 40FT = 40′ = 40 feet general purpose
- 40’HC = 40’HQ = 40 feet high cube
Like with Air Freight, shipping goods can be consolidated to benefit economies of scale and reduce the price, this is known as LCL (Less Container Load). If you are shipping enough goods to fit into one container, or the goods are fragile or contain chemicals/liquids, it may be good to consider FCL shipment, Full Container Load. Containers and goods are delivered to a Container Freight Station or Container Yard for consolidation and loading onto a ship.
WHAT IS THE COST OF OCEAN AND SEA FREIGHT?
There are numerous costs and tariffs to consider when having goods shipped or importing goods from overseas. Shipping Terms depends on the agreement with your supplier – For Example, FOB means they just are delivering to their port and Export them at their Costs. Be sure to know which incoterm relates to your shipping contract, so that the responsibility between yourself and the supplier is clear.
Fees include, but aren’t limited to:
- LCL or FCL fees
- Transportation to Port of Loading
- Export customs declaration
- Loading port fees
- Ocean freight charge
- Destination port fees
- Import customs clearance
- Customs duty/tax
- Transportation from the Port of Destination
- Destination country customs related fee (i.e. Duty/Tax)
- Destination port/terminal handling fee (i.e. THC)
- Destination agent service fee （i.e. D/O)
BILL OF LADING AND SHIPPING
Shipping goods also require a Bill of Lading (BL), for sea freight, these are called Seaway or Ocean Bills of Lading. A Bill of Lading lists the cargo that will be loaded or carried on a ship, given to the consignee of the goods. A Bill of Lading can act as a receipt that goods are loaded, a form of contract to demonstrate that goods are being shipped, and a document to the title of goods.