Understanding Everything about the Ocean Freight

Ocean Freight

Ocean freight is a mode of shipping goods from one place through the ocean. Usually, shipping goods by ocean freight is done for international purposes, and it is a less expensive mode of transporting goods from one country to another. In ocean freight, countless goods can be transported, i.e., vehicles, industrial goods, chemicals, food items, equipment, tools, furniture, and much more.

Ocean freight is a good option for sending shipments in bulk to every corner of the world. In this blog post, we’ll break down everything you need to know about ocean freight, how it works, its benefits, and much more. So keep reading till the end.

What is Ocean Freight?

What is Ocean Freight

Ocean freight involves shipping goods by ships. It can be a more affordable option than other types of shipping. Large ships can carry goods in bulk, so the cost is spread out over more items. Usually, ocean freight takes time to deliver goods in different countries. The process is slower than other shipping methods, so it’s not ideal for time-sensitive shipments. Sometimes there are goods in shipment with less shelf life, so delivering them through ocean freight is not good. However, if you’re not in hurry and looking for a cost-effective option, then ocean freight is ideal.

Types of Ocean Freight:

There are two main types of ocean freight: FCL and LCL.


FCL means full container load, and it means goods will have their own dedicated space in a shipping container. The shipment would not get mixed with other shipments and is the best choice for those who want to ship various goods simultaneously in a single location. In this method, the shipment would be transported without getting mixed with any other shipment.


LCL stands for less than container load, and it means that goods will share space with other shipments in a single container. This shipping is suitable for those who have a small shipment. With this shipping method, importers and exporters feel less burden at their pockets because they don’t need to book the entire container for their shipment. They need to pay only for the space their shipment takes in the container.

Comparison between FCL & LCL:

FCL is more expensive than LCL but offers a few advantages. First, goods will be better protected since they won’t mix with other shipments. Second, FCL is faster since goods won’t have to be loaded and unloaded with other shipments. LCL is cost-effective and suitable for small shipments.

So which type of ocean freight is right for you? It depends on your needs. If you’re shipping time-sensitive or high-value goods, FCL may be the way to go. But if you’re looking for a more affordable option, LCL could be a better choice.

Benefits of Ocean Freight

Ocean freight offers several benefits to importers and exporters. These benefits are: 

Cost Effective: 

As we mentioned, ocean freight is often more affordable than other shipping methods. This is because ships can carry goods in bulk at a time. So the cost is spread out over more items. Ocean freight is more cost-effective than other freight modes, i.e., rail, road, and air. Companies that offer shipping freight services have different low-cost shipping options for various goods.

Environmentally Friendly: 

Ocean freight is one of the most environmentally friendly shipping methods available. That’s because ships emit less pollution than trucks or airplanes.


Ocean freight offers a lot of flexibility in terms of time and destination. This is because there are many ports worldwide, so that you can choose the one closest to your destination. Other than this, sea freight is a more suitable option for bulky and small shipments simultaneously. Compared to other means of shipment, ocean freight can satisfy all customers’ needs.


Ocean freight’s advantage is the safe transportation of hazardous goods to the final destination. There are particular guidelines for shipping companies to handle such shipments while following strict rules. Also, marine time security remains active to decrease marine disasters. For shipment safety, special containers are designed to keep the shipment sealed and locked during the process.

Low Maintenance Cost:

Ocean freight requires less maintenance cost than other means of transportation. Because of the low maintenance cost of ships, the shipping companies make affordable packages for the customers for their shipment bookings.

Best for bulky Goods:

Ocean freight is the most suitable option for transporting bulky or oversized cargo without worrying about loss or damage. Ships have such a giant size that it becomes convenient for shipping companies to load whatever they want, i.e., cars, heavy equipment and furniture, construction goods, and much more.  

Basic Incoterms Used In Ocean Freight

When shipping cargo, it’s essential to be familiar with the different incoterms to understand your responsibilities and liabilities. Each incoterm has its own rules governing the relationship between buyer and seller. The three basic intercoterms are as follows:

Free On Board (FOB):

The free on board (FOB)  is agreement between the seller and buyer to take responsibility for goods. According to this agreement, sellers are responsible for various shipment processes before transporting goods, i.e., packaging, labeling, loading, and so forth. Later, the buyers will take all the responsibility for shipment after loading goods on the ship.

EXW (Ex Works):

According to EXW agreement, the main aim is to transfer the risk to the actual buyer of the shipment. As the buyers complete purchasing goods from the manufacturers, the rest of the responsibilities get shifted to buyers. From transporting goods to delivering goods at the final destination, buyers will be responsible for all the happenings.

DDP (Delivery Duty Paid)

According to the DDP, sellers took responsibility for the risks and costs involved in transporting goods. Under this agreement, some significant risks include shipping costs, insurance of goods, import, or export duties, are directly transferred to the seller until the buyer receives the goods.


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