How Does By Sea Transport Work

If you are a foreign trader, freight forwarder, or interested in international trade, then the term “sea freight” must be familiar to you. Maritime transport is the most important mode of transport in international trade, accounting for more than 90% of the global cargo volume. So, how exactly does by sea transport operate? How is sea freight carried out? This article will guide you through the operations of maritime transport, giving you a comprehensive understanding of by sea transport.

What is Sea Freight?

Simply put, sea freight is the transportation of goods by ships sailing on the sea. It is like a “sea bus”, transporting goods from all over the world to different ports. Compared with air and land transport, the advantage of maritime transport is its large volume and low cost, making it suitable for bulk goods and long-distance transportation. Imagine if we want to transport a batch of cars, large machinery, or tons of raw materials, by sea transport is undoubtedly the best choice. Of course, the disadvantages of sea freight are also obvious: it is slow and greatly affected by the weather. Therefore, when choosing a mode of transport, you need to consider the nature of the goods, time requirements, and budget.

Two Main Types of Maritime Transport:

Sea freight is mainly divided into two types, like “private car” and “carpool” services in express delivery:

• Full Container Load (FCL): Refers to a container used entirely by one shipper. This method is suitable for large quantities of goods, which can reduce transportation costs and reduce the risk of cargo damage. You can imagine it as a “private car”, where the goods exclusively enjoy a container, which is safer and more convenient.
• Less than Container Load (LCL): Refers to the transportation of goods from multiple shippers in one container. This method is suitable for small quantities of goods, which can save transportation costs, but requires additional LCL fees and longer transportation times. This is like “carpooling”. Although the price is cheaper, you may have to wait for other people’s goods, and some goods may be unloaded along the way.

Which method to choose depends on your cargo volume and budget. If your cargo is enough to fill a container, then FCL is a better choice. If your cargo volume is small, then LCL can help you save costs.

The Operation Process of Sea Freight

By sea transport operation is a complex process involving multiple links and participants. According to the information, we can break down the operation of sea freight into the following main steps:

Export Sea Freight Operation Process (Taking Container as an Example)

1. Consignment Acceptance: The freight forwarding company (or you directly) accepts the customer’s consignment, that is, you need to tell the freight forwarding company what goods you want to transport and from where to where, just like placing an order online.
2. Booking: The freight forwarding company books space with the shipping company, just like booking a plane ticket, to ensure that your goods have a “seat”.
3. Container Stuffing: Arrange for the container to be loaded with goods at the designated location, just like checking in your luggage at the airport.
4. Customs Declaration and Container Loading: Prepare customs declaration documents, carry out customs declaration, and then load the goods into the container, just like airport security, to ensure that your goods meet the regulations.
5. Loading: Load the container onto the ship, just like your luggage being loaded onto the plane.
6. Unloading: After the ship arrives at the destination port, unload the container, just like the luggage being unloaded after the plane arrives at the destination.
7. Notice of Delivery: The freight forwarding company notifies the consignee to pick up the goods, just like the express delivery company sends you a text message to notify you to pick up the package.
8. Customs Clearance: The consignee goes through import customs clearance procedures, just like you need to accept customs inspection when entering the country.
9. Exchange Order: The consignee exchanges the delivery order with the shipping company or its agent with the delivery order, just like you take the ID card to the express station to pick up the express.
10. Delivery: The consignee picks up the goods at the port with the delivery order, just like you get the express.

Shipping Operation Process (From the Perspective of Freight Forwarding Company)

Shipping operations are mainly handled by personnel in the freight forwarding company who are specifically responsible for docking with the shipping company. They are like “middlemen”, responsible for coordinating the relationship between the shipping company and the cargo owner. They need to:

1. Inquiry: Inquire about prices from different shipping companies, compare prices and services, just like you shop around.
2. Booking: Choose a suitable shipping company, book space, and get the shipping company’s booking confirmation, just like you successfully booked a plane ticket.
3. Issue Shipping Order (S/O): The shipping company issues a Shipping Order (S/O), which is an important voucher proving that you have successfully booked space.
4. The cargo owner picks up the container and loads the goods: The cargo owner picks up the container at the designated location with the S/O, and then loads the goods, just like you check in your luggage at the airport.
5. Customs Declaration: The cargo owner or freight forwarding company handles export customs declaration procedures, just like airport security.
6. Bill of Lading Supplement: Provide the information required for the bill of lading to the shipping company. The bill of lading is like the “ID card” of the goods, recording the detailed information of the goods.
7. Document Verification: Check whether the bill of lading information is correct to ensure that the information is accurate.
8. Payment: Pay the freight to the shipping company, just like you need to pay after purchasing a plane ticket.
9. Obtain the Bill of Lading: Obtain the original bill of lading from the shipping company, just like you get your boarding pass.

Common Documents for Sea Freight

In the process of sea freight, various documents are required. These documents are important vouchers to ensure the smooth transportation and handover of goods. Common documents include:

• Booking Note: The document for the cargo owner to handle the consignment of goods to the carrier or its agent is equivalent to the “delivery note” and is the basis for booking.
• Shipping Order (S/O): A document issued by the shipping company to the shipper, ordering the captain to load the goods, also known as “customs declaration” or “delivery note”.
• Mate’s Receipt: A receipt from the chief mate, which is a receipt for the ship’s receipt of the goods and a certificate that the goods have been loaded.
• Bill of Lading (B/L): The most important document, which is the certificate of ownership of the goods and can be used for delivery, negotiation, and transfer.
• Loading List: A list compiled by the carrier based on the loading list, classifying all the goods to be loaded on the ship according to the port of destination and the nature of the goods.
• Manifest: A summary list listing all the goods carried on the ship by port.
• Cargo Plan: A cabin plan prepared according to the actual loading of goods.
• Delivery Order: A certificate that the consignee exchanges with the carrier or its agent with the original bill of lading or copy of the bill of lading and can pick up the goods from the port.
• Certificate of Origin (C/O): A document issued by the Chamber of Commerce to prove the origin of the goods.
• Purchase Order (P/O): An order issued by the purchaser to the supplier.
• Proforma Invoice (P/I): A reference quotation provided by the seller to the buyer before the transaction is officially concluded.

These documents are like “ID cards”, “passes” and “passports” in the sea freight process, and the lack of any one may lead to obstruction of cargo transportation.

Choosing the Right Sea Freight Method

Choosing the right maritime transport method requires comprehensive consideration of the following factors:

• Cargo Volume: Choose FCL for large cargo volume and LCL for small cargo volume.
• Transportation Time: Different routes and shipping companies have different transportation times. If you have high time requirements, you can choose a direct route.
• Transportation Cost: Compare the quotations of different shipping companies and choose the most cost-effective solution.
• Cargo Type: Some cargoes have special requirements for transportation conditions and require the selection of a special shipping company. For example, refrigerated cargo requires the selection of refrigerated containers.

Finding a Reliable Freight Forwarding Company

If you don’t want to handle these matters yourself, you can find a reliable freight forwarding company or consolidation company. A professional freight forwarding company can provide you with one-stop service, including booking, customs declaration, customs clearance, etc., saving you time and effort. For example, we at GeeseNest provide professional sea freight services. We can help you with the materials you need, and we can also be responsible for handling these matters if you have requirements for customs clearance. In addition, our consolidation logistics has a variety of maritime transport options, and you can find the most suitable transportation route.

Conclusion

By sea transport is a complex and important link. Understanding the operation process of sea freight will help you to carry out international trade better. Whether as a cargo owner or a freight forwarder, you need to continuously learn and accumulate experience to succeed in the maritime transport field. Hope this article can help you have a clearer understanding of “sea freight” and be more comfortable in actual operation.