What is Sea Freight
Sea freight is carried out based on a contract for the lease of part of a vessel. The document specifies the route, loading timelines, rental costs, delivery times, and other cooperation conditions.
Sea freight using container shipping emerged and began to actively develop in the second half of the 20th century. The first such shipment took place in the 1950s. In the 1960s, container shipping began to be actively implemented in the USA and Europe. By the 1980s and 1990s, there was a true "container boom" — container shipping became the dominant mode of freight transport.
What is the reason for such success?
It all comes down to standardization. The use of standard containers measuring 20 or 40 feet allowed for the unification of loading, transloading, and unloading processes. This significantly increased the efficiency and speed of cargo operations.
Standardization led to the emergence and development of transport infrastructure and equipment. All port terminals, storage yards, and warehouses are designed with container sizes in mind. All loading and unloading equipment is created to fit the dimensions of cargo sea containers. International standards have been developed for sea container freight, which are used by all carriers worldwide.
Pros and Cons of Sea Freight
International sea freight is considered one of the most cost-effective methods of cargo transportation. It allows for the delivery of large quantities of goods of various sizes and hazard classes to different parts of the world. This makes the method economically justified.
Advantages:
- Cargo Capacity: A single vessel can carry up to 24,000 containers at once. To ship this volume of cargo would require hundreds of trucks or several train compositions.
- Convenience: It is the most convenient and economically accessible way for intercontinental transportation of large volumes of goods. The only alternative is cargo planes, but they have weight restrictions and cannot land everywhere.
- Economic Benefit: Sea transport is well-developed; almost every country with access to the sea/ocean has a developed port infrastructure where the processes of loading, unloading, and transloading are well-established, reducing cargo transloading costs and minimizing expenses.
- Safety: Shipping goods by sea is considered the most reliable mode of transport. Accidents at sea occur much less frequently than on roadways. Additionally, all shipments are required to be insured.
Disadvantages:
One of the downsides of sea freight is the potential increase in delivery times in case of adverse weather conditions.
Terms of Sea Freight
- EXW (Ex Works): In this approach, the seller hands over the goods for shipment, but all costs related to documentation fall on the buyer. In this case, the seller bears minimal risks.
- CIF (Cost, Insurance, and Freight): The seller is responsible for preparing customs documents, purchasing insurance, and handling loading onto the vessel. The buyer only accepts the cargo and arranges for its further forwarding.
- CFR (Cost and Freight): The seller is responsible for the entire delivery chain—from customs clearance to delivery at the destination port.
- FOB (Free on Board): The seller delivers the goods to the port of departure, while the buyer is responsible for transportation to the destination port.
How Much Does Sea Freight for a Container Cost?
The cost of freight is calculated individually. It depends on the chosen Incoterms, type and volume of cargo, distance of transportation, selected operator, and so on. The terms should be specified in the contract. Each container has its own rental price, which is based on its internal volume.
Rules for Paying Sea Freight
According to Incoterms, the freight is paid by the party who is the customer. Therefore, the seller pays the freight under CIF and CFR delivery terms. Under EXW and FOB delivery terms, the buyer pays the freight.
Penalty for Canceling Sea Freight
If the transportation is canceled or you change your mind, be aware that refusal of freight incurs a penalty. In case of non-fulfillment of obligations, the customer must pay a penalty, the amount of which depends on the specific sea carrier.
Advantages of Sea Freight with Win Way Logistics
Our logistics company specializes in freight services. Every month, we ship large volumes of cargo, which allows us to obtain special reduced rates and service conditions from shipping agents.
In 2024, the following international shipping carriers (shipping lines) are collaborating with the ports of Novorossiysk:
MSC, ARKAS, ADMIRAL, AKKON, FESCO, VERIM, AMETHIST, RUSCON LINE, RANDAR, REEL SHIPPING, HUB SHIPPING, ECON SHIPPING, SIDRA, UNIGLOBAL, LAM, XHL, SAFETRANS, CSTAR LINE, MILAHA, LANCER, MEDKON LINES, SILMAR, NORD STAR, UNITED. The number of carriers may change as new market participants emerge.
Each shipping line in Novorossiysk operates under individual rules and standards. When choosing a specific agent, it is essential to consider various factors—delivery times, service costs, documentation specifics, as well as the number and depth of berths, availability of necessary loading and unloading equipment, qualified personnel, warehouse facilities, and more.
We already have all the information about the shipping lines at the port. We have contracts with representatives of each line, which allows us to provide a comfortable service for international shipments to any point in the world.
Ordering Freight with Us is Convenient and Cost-Effective You save time and resources while receiving complete support for your shipments, including all document preparation and interaction with intermediaries. We will help reduce your costs and make international cargo transit as simple as possible. Immediately after submitting your request, you will be assigned a dedicated manager and assistant who will be in contact with you 24/7.
Contact Information:
Phone: +7 965 143 16 80
(Mon-Fri from 8:30 AM to 5:30 PM)
Email: mail@wwlogist.com
the cost of freight
To calculate the cost of freight