Sea freight: A comprehensive guide to shipping by sea
Businesses around the world rely heavily on international trade. If you’re a business owner looking to expand into the global market, understanding the complexities of sea freight is essential.
Whether you’re navigating the regulations of various industries, coordinating with customs, or ensuring your goods are properly packed and protected during transit, understanding the full scope of sea shipping logistics can make all the difference in a seamless supply chain.
In this blog post, we will discuss what sea freight is, its process, the requirements for specific industries when shipping by sea, and how we can help.
What is sea freight?
Sea freight is the process of transporting goods across the ocean using cargo ships. It is one of the most common methods of international shipping, accounting for more than 80% of global trade.
Different methods of sea freight
There are several different types of sea freight, each catering to different cargo types, volumes and shipping requirements. The main methods include:
- Full container load (FLC)
In FLC, an entire container is used by one shipper for their goods. It’s ideal for large shipments that can fill a 20-foot or 40-foot container.
It is generally more secure than other methods, resulting in faster handling due to being able to skip the consolidation as well as a lower risk of damage or loss. It also has a lower cost per unit for larger quantities, making it more cost-effective.
These are typically used for large-volume shipments, such as machinery or manufactured products.
- Less than container load (LCL)
In LCL, multiple shippers share the same container. This is useful for shipments that don’t require as much space.
While LCL is cost-effective for smaller loads, as you’re only paying for the space inside of a container your goods occupy, it usually requires longer transit times and multiple handling points, as the cargo must be loaded, unloaded, and sorted alongside other shipments. This also increases the risk of damage due to frequent handling and shared container space.
This is a popular method for small to medium-sized shipments, such as boxes of consumer goods or smaller equipment.
- Roll-on/Roll-off
Roll-on/roll-off shipping is mainly used in the automotive industry. It involves transporting vehicles, such as cars, trucks, buses and construction vehicles. Instead of being lifted by cranes, the vehicles are driven straight onto the ship, secured during transit, and driven off at the destination port.
One of its key advantages is the simplicity and speed of loading and unloading, which reduces handling time and costs. However, this method is restricted to specific ports that can handle such cargo, and the goods are more vulnerable to environmental conditions and weather damage than container shipping.
- Bulk shipping
Bulk shipping is commonly used to ship large quantities of unpackaged goods. Unlike containerised cargo, bulk shipments are loaded directly into the cargo holds of bulk carrier ships.
There are two types of bulk shipping: dry bulk, which transports grains, coal, and cement, and liquid bulk, which transports fluids like oil, chemicals, and liquefied natural gas (LNG).
Bulk shipping is highly efficient for moving large, homogeneous quantities of goods, especially over long distances. It requires specialised handling and equipment at both the origin and destination ports, including cranes, pumps, or conveyor systems.
While bulk shipping is cost-effective for high-volume goods, it is only practical for certain types of cargo, and ports require specialised infrastructure to handle such large-scale shipments.
- Break bulk-shipping
Break-bulk shipping involves the transportation of goods that are too large, heavy, or irregular in shape to fit into standard containers.
Instead, these goods are loaded individually, usually in crates, drums, pallets, or other containers, and then manually transferred to the vessel.
This is commonly used for oversized cargo such as machinery, construction equipment, steel beams, or heavy industrial parts, and is suitable for items that must be shipped in their entirety without being disassembled.
While this method allows for greater flexibility in transporting non-containerised goods, it is more time-consuming and expensive due to the additional labour required for loading and unloading, as well as a higher risk of damage.
- Reefer shipping
Reefer shipping, or refrigerated shipping, is the transportation of temperature-sensitive goods in specially designed containers. These temperature-controlled containers ensure that products maintain their freshness, quality, and safety during transit. These are necessary for preserving perishable items such as fruits, vegetables, dairy products, meat, fish, and pharmaceuticals while in transit over long distances.
This method is crucial for global trade, allowing companies to reach distant markets without compromising the integrity of their products. It does require careful monitoring and management of temperatures throughout the journey.
Sea freight process
The process of sea freight involves several key stages, each ensuring the efficient movement of goods from one place to another by ship. Here’s an overview of the process:
- Booking
The first step is to contact a logistics company to book a space on a ship. You will need to provide details about the cargo, such as type dimensions, weight, destination, and preferred shipment date. The shipping line will then provide a quote, and once the rate is agreed upon, the booking is confirmed.
- Custom clearance documentation
You will then be required to provide the shipper with several custom clearance documents. These include:
1. Bill of Landing (BOL)
This is the most important document in sea freight. It holds information on the goods being transported, the destination it is going to, the name of the shipper and consignee and other important goods. It serves as a receipt for goods, a contract between the shipper and the carrier, and a title document.
2. Packed list and other important documentation
These documents detail the shipment’s contents, including weight, dimensions, and value, for customs clearance at the destination. Commercial invoices, customs declarations, certificates of origin, insurance certificates, and import declarations will also need to be provided. This is something we can help with.
3. Certificates and permits
Certain certificates or permits may be required based on the nature of the goods, for example, hazardous materials, food products, or high-value items.
- Cargo packing, transportation to the port and loading on the vessel
After all documentation is acquired, goods are packaged and loaded into shipping containers and transported to the port for customs checks. Once cleared, they are handed over to the shipping line and stored in a specific order to ensure balance and ease of unloading at the destination port.
- Sea transit, arrival at destination port and delivery to final destination
The ship is then equipped with tracking systems that allow the shipper to monitor the shipment’s progress before departure. Upon arrival at its destination. containers are unloaded from the ship, and the receiving party will then be required to go through customs clearance. All import duties and taxes must be paid at this stage.
Once this is done, the container is released from the port. If the goods are not delivered directly from the port, the logistics company arranges for transportation to the final destination.
To ensure a smooth delivery, each of these steps requires coordination among multiple parties, including the shipper, logistics provider, customs agents, and port authorities.
Requirements for specific industries
Sea freight requirements vary by industry and the type of goods being transported. Each sector has its own set of regulations governing safety, quality, and environmental impact.
Here’s a breakdown of some of the key industries and what requirements they must adhere to throughout the sea freight process:
Automotive and machinery
- Certificate of Origin: This document must state where the machinery or automotive parts were manufactured. This is critical when determining import duties and taxes.
- Commercial Invoice and Packing List: This document must detail the specific machinery parts being transported, their qualities and their respective values.
- Import Permits: Certain countries require import permits for heavy machinery or vehicles.
- Special Packaging: Large, heavy items like engines or vehicles must be securely packed and sometimes crated to avoid damage during transit.
Chemicals and hazardous materials
- Material Safety Data Sheet: This document must contain detailed information about the chemical composition, handling, storage, and emergency procedures for hazardous goods.
- Dangerous Goods Declaration: This is a mandatory document that identifies the hazardous materials being shipped and confirms compliance with international safety standards.
- Hazard Labels: Containers must be clearly labelled to indicate the type of hazard.
- Packing Group Requirements: Chemicals are classified into different packing groups based on their risk level, which determines the level of packaging precautions required. This must be made clear to the shipper.
Pharmaceuticals and medical devices
- Good Manufacturing Practices (GMP) Certification: This ensures that products are produced and controlled in accordance with quality standards.
- Certificate of Analysis: This confirms that a pharmaceutical product meets the required standards of safety.
- Import licences: Some of these products require special import licences in accordance with the destination country’s regulations. This will need to be checked before shipping.
- Hazardous Materials Documentation: If pharmaceuticals contain controlled substances, hazardous material (Hazmat) shipping requirements may apply.
Luxury goods
- Certificate of Authenticity: This document confirms the authenticity of luxury items like artwork or high-end watches.
- Customs Bond: High-value items may require customs bonds to guarantee that all applicable duties are paid.
- Insurance: Luxury goods often require additional insurance to protect their high value during sea freight.
- CITES Permit: If any items contain rate or protected materials (such as ivory or certain exotic woods), a CIES (Convention on International Trade in Endangered Species) permit is required.
How OSE can help
From booking and containerisation to navigating industry-specific requirements and customs documentation, understanding sea freight logistics can save you time and money.
By partnering with an experienced logistics company, such as ourselves, adhering to regulatory requirements, and maintaining up-to-date knowledge of industry trends, businesses can optimise their sea shipping operations.
Sea freight is part of the international logistics service that we offer at OSE European. This option provides you with the flexibility to ship full or part-load containers on a lengthy timescale, depending on your specific requirements.
We also provide customs clearance documentation services, and our highly experienced team can help to ensure you are fully prepared when looking to export and import goods to and from the UK.
If you’re looking for support with shipping your goods internationally, get in touch with a member of our team today.