What’s So Special About Ocean Freight?
Ocean freight is the backbone of global trade, playing an undeniable role in moving most of the world’s goods from country to country. But with other major and more efficient modes of transportation available, what’s so special about ocean freight?
Ocean freight is used to transport everything from produce and medicine to high-value items like art and electronics. Roughly 90% of the world’s goods are transported by ocean shipping. With its extensive and unique history, along with the myriad of benefits it has to offer, we will explore the key reasons why ocean freight stands out and is often the go-to choice for international shipping.
History of Ocean Freight
Ocean freight has an extensive history, dating all the way back to ancient times in 3000 B.C. Ancient civilizations, such as the Greeks, Phoenicians, and Egyptians, utilized wooden ships to transport goods like spices, grains, and pottery across the Mediterranean Sea.
The Age of Exploration between the 15th and 17th centuries saw significant growth and established trade between Asia, Europe, and the newfound Americas. Ships and other technological advancements are what made trade more efficient and gave multiple countries a global reach.
During the Industrial Revolution, the creation of the steamship was introduced, increasing the speed and dependability of ocean transport. This time in history also saw the development of standardized shipping routes and the rise of commercial shipping companies, which are what is used today.
The 20th Century saw the most considerable development in ocean freight – an invention that revolutionized the mode of transportation forever. In the 1950s, Malcom P. McLean invented the shipping container, or containerized cargo – allowing goods to be loaded and unloaded more efficiently than before, reducing shipping costs and time.
Ways to Ship Ocean Freight
There are three types of ways businesses can ship freight:
– Full Container Load (FCL)
– Less-than-Container Load (LCL)
– Specialized containers
FCLs are best when businesses have freight that takes up an entire container. Most of the time, they’re used for large or bulk shipments. LCLs allow multiple shippers to combine their freight into a shared container, which helps to reduce costs. Finally, specialized containers are best for freight that requires refrigeration or oversized equipment.
Benefits of Ocean Freight
For centuries, people have relied heavily on ocean freight to get their cargo across continents. But what exactly makes ocean freight stand out from other transportation methods to other countries?
Cost-Effective for Long-Distance Shipping
If a business relies on global trade, ocean freight shipping is one of the most cost-effective ways to move their cargo. It’s typically four to six times cheaper than if a business shipped cargo by air. The cost savings become very noticeable for longer distances and when larger quantities of cargo are shipped.
Efficient for Bulk Cargo
Unlike other modes of transportation, ocean freight shipping has the ability to transport large and heavy shipments with ease. Cargo ships can carry up to 24,000 twenty-foot equivalent units (TEUs). Various cargo that ocean freight transports include:
– industrial machinery and heavy equipment
– vehicles and automotive parts
– raw materials, such as steel, lumber, and chemicals
– bulk commodities, such as grain, coal, and cement
Better for the Environment
One of the biggest benefits of ocean freight shipping is how it affects the environment. As sustainability has been a crucial factor for businesses worldwide to assess when shipping cargo, ocean shipping is the first choice many choose. With lower environmental impact, it positively affects global efforts to reduce greenhouse gas emissions.
Efforts from the maritime industry to reduce emissions include:
– adopting cleaner fuels, such as biodiesel or liquefied natural gas (LNG)
– improvements in vessel designs to reduce drag and fuel use
– testing solar and wind-assisted propulsion systems
Ability to Ship Dangerous Goods
Unlike air freight shipping, ocean shipping is more than able to handle dangerous or hazardous goods. Shipping companies and their crew are trained to handle, store, and transport goods that have been deemed dangerous. International maritime regulations, such as the International Maritime Dangerous Goods (IMDG) Code, help ensure that any dangerous or hazardous shipment follows strict safety protocols. Other safety measures include reinforced containers, secure packaging, and specialized storage zones.
Safe and Secure
Once a cargo container is sealed, the goods inside are safe and secure. The containers are built to withstand any harsh weather or rough handling that may occur while at sea. They’re also monitored and regularly inspected throughout transit, ensuring that they remain sealed and locked. Insurance for sea freight is well-established and covers a wide range of cargo, ensuring another added level of protection.
The simplicity and stability of ocean freight make it unique. Despite potential weather delays or port congestion, ocean freight is generally considered stable. It doesn’t have to deal with traffic, accidents, or the risk of cargo being stolen like with other modes of freight transportation. With ocean freight, cargo is minimally handled, reducing the risk of damage – contributing to its reputation of stability.
Access to Markets Worldwide
Ocean freight shipping links economies all over the world with over 4,800 ports. It makes it easier for businesses to ship bulk cargo to countries that are harder to reach otherwise. While other modes of transport may be influenced by infrastructure or borders, ocean freight has unmatched global coverage.
When Ocean Freight Shipping May Not be the Best Option
For many businesses, ocean freight shipping helps expand their reach to new markets. The benefits make it easy for new and old businesses to spend their money wisely on shipping. But there are times when it’s not the best choice. These reasons include:
– Shipping freight by ocean is not time-efficient. Depending on the origin and destination, it may take weeks for the cargo to travel. If there’s a timeline that needs to be met, choosing another transportation method may be a better course of action.
– Ocean freight shipping may not be ideal for smaller shipments. If it’s not a bulk shipment, the added time may not be worth it. It may also be less cost-effective in the long run.
However, many businesses prefer the environmental benefits that ocean freight shipping offers. Businesses also take into account that even if they have a smaller shipment, it may be heavy or dangerous, which only ocean freight shipping is equipped to handle. Overall, ocean freight shipping is the best choice when dealing with global trade.
How Much Does Ocean Freight Shipping Cost?
There isn’t one set price every time a business uses ocean transportation. Rates are influenced by several factors, including:
– the shipments size and weight
– the distance between the origin and destination
– the type and classification of the freight
– any seasonal or market demands that may be occurring
Also factor in any added costs, such as insurance or customs fees. Like every mode of transportation in the logistics industry, ocean freight shipping rates are also determined by any fuel surcharges. If the price of fuel rises, so do shipping rates. Regulatory changes are also an ever-changing factor that businesses must account for. Countries worldwide change their rules and regulations constantly, so stay on top of them as they happen.
Conclusion
Ocean freight shipping is a crucial method of transportation in the logistics industry. With a history that goes back thousands of years, it’s an industry that focuses on the future while using what it’s learned from the past. It has reached almost every corner of the globe, helping the global economy across multiple continents.
While various modes of transportation exist, they each have their own strengths and weaknesses. Ocean freight is unmatched when it comes to global shipping. It’s an indispensable mode of transportation with its unmatched capacity, cost efficiency, positive environmental impact, and overall reliability. Even with ongoing advancements, ocean freight will be sure to stand the test of time and remain a vital component of the global supply chain.
