How Sea Freight Works From China? Understand how sea freight works, step-by-step, from an importer’s perspective.
Sea freight is the backbone of global logistics, enabling the movement of commodities across oceans.
Whether you’re an experienced importer looking to improve your logistics or a complete beginner to the business, this article will provide you with vital insights into the subtleties of maritime freight.
What is sea freight?
Sea freight, often known as ocean freight, is an important component of international trade since it allows commodities to be transported across long distances across the world’s oceans. You may also hear it called deep sea freight shipping.
It plays an important role in connecting markets and facilitating global product trade.
Sea freight services involve the shipment of merchandise in containers and are an essential component of the supply chain for enterprises engaged in international trade.
The global container fleet business is expected to grow by 6.3% this year. This is predicted to rise to 8.1% in 2024.
Types of sea freight shipping
When carrying items over the ocean, you can choose between two types of shipments: LCL or FCL.
Less than container load (LCL).
When your shipment does not fill an entire container, you select Less Than Container Load (LCL) shipping.
This system enables numerous shippers to share a single container, making it an economical option for smaller shipments.
Full container load (FCL).
Full Container Load (FCL) shipping is appropriate for larger shipments that require a full container.
Businesses shipping FCL do not need to share their container with anyone because it can only be filled with their own goods. Shippers frequently favor it while transporting huge amounts of products.
How Sea Freight Works From China
Understanding the process is crucial for businesses engaged in international trade.
Here’s a step-by-step breakdown:
Step 1: Request bids and order your merchandise from a Chinese source.
First, place an order for your goods. Approach suppliers and manufacturers in China and negotiate a price to buy the products you want. We urge that you read our blog, Why You Shouldn’t Rely on Your Supplier to Handle Your Imports.
You should negotiate not just the price, minimum order quantity, and timeframes, but also the purchasing conditions (incoterms) that will be used. This is the most crucial element to establish at this point, because the chosen incoterm will determine who pays for what during the shipping process, from the moment it leaves the supplier’s warehouse until it arrives at your location.The incoterm also states who is responsible for insurance or is liable for risks (supplier or buyer) at each stage of the shipping journey.
Step #2: Consider the right transport mode
Ocean travel takes longer than air transit, making sea freight unsuitable for time-sensitive cargo.
If your goods is urgent or perishable, air freight should be the best option.
Businesses must arrange their logistics to handle extended lead times. Typically, your items will be at sea for 15 to 60 days when shipped from China.
Read our post on air freight vs. sea freight to compare the two modes of transportation.
Step #3: Book your freight
Once your goods is ready, book your shipment with your preferred shipping company. Your freight forwarder should be able to provide many carrier options based on your specifications.
transporting companies provide varying ETAs and prices based on the sort of products you are transporting and how quickly you require your items. Faster direct services are typically more expensive than lengthier ones including transshipment.
Consider acquiring maritime insurance with your freight forwarder or insurer for added piece of mind in case your goods are lost, damaged, or involved in an incident.
If you are considering expanding into new markets, RJ Logistics can assist you. As an experienced logistics supplier, we will provide assistance to you at every step through professional logistics knowledge, visibility, and communication skills. Sea freight, air freight, express delivery, procurement in China, product testing, warehousing, supplier selection, one-stop service, contact us immediately for consultation
Step #4: Freight forwarder arranges shipment
A marine freight forwarder will then organize transportation for each leg of the route, door-to-door. They will coordinate with shipping lines, transportation operators, and port authorities to schedule each movement of your goods.
They will also handle your shipping papers and inform the status of your shipments so you know when to anticipate them and can prepare to unload your products.
Freight forwarders help to reduce risk by establishing relationships with reputable carriers and services to handle your shipment as smoothly as possible.
Step #5: Goods go through import customs clearance while in transit
After leaving China, your cargo must go through import customs clearance. This phase assures conformity with international trade standards and allows countries to control what enters the country.
A customs broker must be hired at this point since they are the licensed professional authorized to communicate with government authorities and prepare all papers required to clear your products. The process begins while the products are still in water.
They will assess your items categorization, prepare the necessary import papers, and determine the amount of duty and GST you must pay upon import.
Once cleared, your items can be retrieved at the port by a transport firm (booked by your freight forwarder on your behalf).
Advantages of sea freight from china
Cost-effective
One of the key benefits of sea freight is its cost effectiveness, particularly for large shipments.
Though there are still certain tariffs and fees to pay, the economies of scale involved with moving goods in bulk containers make sea freight an affordable choice for firms engaged in international trade.
Easier to Maneuver Heavy or Oddly-Shaped Products
Sea freight is ideal for delivering big or oversized objects that may be difficult to send using other modes of transportation.
The variety of container sizes and types enables for the efficient transportation of a wide range of items.
Less Restrictive for Hazardous Goods
A lot of items are prohibited in air freight, depending on the laws of your country of origin and destination.
Restricted goods may include:
- Flammable items
- Corrosive or explosive substances
- Magnetic items
- Biochemical products
- Products considered dangerous to public health (e.g. medical and clinical waste)
More Carbon Efficient
Compared to air freight, sea freight is a more environmentally friendly option.
Statistics show that sea freight emits up to 92% less carbon compared to air freight.
The larger carrying capacity of vessels and slower speeds contribute to lower carbon emissions per unit of cargo transported, aligning with sustainability goals.
Disadvantages of Sea Freight from china
Time-Consuming
How long does marine freight take? It depends on the origin and destination, but shipping from China by water might take anywhere from 15 to 65 days. Airfreight, on the other hand, takes only 1-3 days, and for domestic shipments, it can even be delivered the same day.
While sea freight provides significant cost advantages, it does so at the expense of time.
Unforeseen Delays
Weather occurrences, supply chain disruptions, port congestion, and limited availability of services or equipment during peak shipping seasons are all risks associated with maritime cargo shipping.
Even if your shipment has arrived at its final port, delays can occur. If your documents are not in order, customs clearance may take longer.
This might cause further delays and uncertain arrival times, which may be problematic to some enterprises.
It is usually advisable to allow for little extra time in your logistics strategy to reduce hazards.
Risk of Damage And Loss of Sea Freight
Sea freight, despite its efficiency and low cost, has inherent risks of cargo damage, loss, or even theft because many parties handle your shipment until delivery. Rough weather, crashes, groundings, fires, and even piracy all pose a risk. Furthermore, poor packaging, insufficient loading and fastening, and mismanagement during port operations can all lead to cargo damage.
Arranging marine insurance through your forwarder is strongly advised to protect your goods if any of the above occur.
Packaging Requirements of Sea Freight Transportation
If you’re exporting your goods, adequate packaging is essential for protecting them throughout travel.
When packing Less Than Container Load (LCL) cargo, utilize strong and sturdy boxes, ideally double-walled for extra protection. Choose high-quality packaging tape that can endure extreme temperature fluctuations during transit. If possible, palletize your cargo for simpler handling, with the heavier things at the bottom. Wrap your goods tightly with black shrink wrap to provide both camouflage and protection. Label items clearly and accurately, and include any special handling instructions such as “fragile” or “top load only.” To avoid the spread of pests, use wood packaging that complies with ISPM 15 rules.
When packing a full container load (FCL), ensure that the weight is evenly distributed throughout the container. Spread out the load and use dunnage to fill any gaps. Pack tightly without exerting pressure on the container door. Avoid misdeclaration costs by staying within the maximum weight limit and precisely declaring the certified gross mass.
Improper packing can cause cargo damage, safety concerns, and carrier rejection, resulting in delays and higher costs.
