Shipping goods by ocean is a key part of global trade, offering a cost-effective and reliable way to move large quantities of cargo over long distances. This method of transportation is especially important for businesses looking to expand their reach to international markets. 

In 2024, global container shipping rates experienced significant fluctuations, with rates reaching over $5,900 per 40-foot container in July, the highest value on record. However, by November 2024, these rates decreased to $3,331 per 40-foot container. This volatility underscores the importance of understanding the basics of ocean freight to navigate the complexities of global trade effectively. 

This blog will dive into how ocean freight shipping works, its importance and the various shipping methods available.

What is Ocean  Freight?

Ocean freight refers to the transportation of goods via cargo ships across the world's oceans. It is one of the most widely used methods for moving large quantities of goods internationally, especially for bulk shipments or large items impractical to send by air. This method involves using various types of vessels, such as container ships, bulk carriers, and tankers, to move goods from one port to another.

Ocean freight typically offers a more cost-effective solution than air freight, making it an ideal choice for businesses transporting large volumes of goods over long distances. The goods are loaded into shipping containers or other cargo holds and are transported through international shipping lanes. 

5 Major Benefits of Shipping via Ocean 

Ocean freight shipping plays a crucial role in global trade and significantly benefits businesses and economies. Here are some of the key reasons why ocean freight are important:

1. Cost-Effective for Bulk Shipments: Ocean freight is often the most economical way to transport large quantities of goods, especially when compared to air freight. Companies can move significant volumes of products at a fraction of the cost.
   
   
2. Global Reach: With ports located around the world, ocean freight provides access to virtually every international market. This makes it an essential tool for businesses looking to expand their global footprint.
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3. Technology Integration (e.g., Vizion): With advanced innovations like Vizion, businesses can track ocean freight shipments in real-time, improving supply chain transparency and reducing the risks of delays or losses.
   
   
4. Capacity and Flexibility: Cargo ships have enormous capacity, allowing businesses to ship large or heavy items that cannot be transported by other means. Additionally, shipping companies offer a range of container options to meet different needs.
   
   
5. Oversized and Bulky Cargo Capabilities: Oversized and bulky cargo capabilities are crucial for businesses transporting large, heavy, or non-standard items. Solutions like Vizion support this type of shipping by offering real-time visibility for ocean freight movement from port of origin to port of destination. With access to diverse carrier options, businesses can efficiently transport these goods, even through challenging routes.

By understanding the importance of ocean freight, companies can make informed decisions that support their global operations, optimize costs, and ensure timely delivery of goods.

7-Step Guide to Maximizing Efficiency in Ocean Freight 

Ocean freight shipping involves several key steps to ensure that goods are transported efficiently and safely. Here’s a guide on how to navigate the process:

Step 1. Choose the Right Shipping Method

Determine the best type of ocean freight for your shipment. If you have large quantities of goods, Full Container Load (FCL) might be the best option. For smaller shipments, Less than Container Load (LCL) may be more suitable. If your cargo is oversized or requires special handling, consider breakbulk or reefer shipping.

Step 2. Select a Reliable Freight Forwarder

Freight forwarders are experienced intermediaries that help coordinate your shipment from start to finish. They can assist with booking shipping, handling documentation, and arranging customs clearance. Choose a reputable freight forwarder who understands your specific needs and can provide guidance on the best route and method for your goods.

Step 3. Prepare Your Goods for Shipping

Properly packaging and labeling your cargo is essential for smooth transportation. Depending on the type of goods, you may need to use specific packaging (e.g., pallets, crates, or specialized containers) to ensure that items remain secure during transit.

Step 4. Book Your Shipment

Once you have prepared your cargo, book your shipment with the chosen carrier or freight forwarder. This step includes determining shipping schedules, ports of departure and arrival, and the type of vessel to be used.

Step 5. Handle Documentation and Compliance

Shipping by the ocean requires various documents, including the bill of lading, commercial invoices, and customs declarations. Ensure that you complete these documents accurately to avoid delays at the port. Working with a freight forwarder can help you comply with international shipping regulations.

Step 6. Monitor Your Shipment

Implement shipment tracking solutions, like Vizion, to monitor the real-time progress of your ocean freight shipment, providing valuable updates on the location and status of your cargo, reducing uncertainty and allowing you to manage delays or issues proactively.

Step 7. Customs Clearance

Before your cargo can enter the destination country, it must clear customs. This involves submitting the necessary documents to customs authorities for inspection. A freight forwarder or customs broker can help ensure your shipment meets all regulatory requirements. Vizion’s Simple MBL tracking helps custom brokers reduce the manual effort of prioritizing which shipment to clear. Learn more—>

By following these steps, businesses can ensure that their goods are shipped smoothly and efficiently via ocean freight. Utilizing API-based technology like Vizion can enhance visibility, making it easier to track shipments and manage logistics effectively.

Conclusion 

Ocean freight shipping remains a cornerstone of global trade, offering businesses a reliable and cost-effective solution for transporting goods across long distances. Whether you are shipping large quantities, bulky items, or temperature-sensitive cargo, understanding the various shipping options and processes is crucial for optimizing your logistics strategy. 

Furthermore, implementing advanced tracking technologies like Vizion can provide real-time visibility into the shipment's journey, helping you stay informed and manage potential delays or disruptions. With the right approach, ocean freight can serve as a powerful tool in expanding your business reach and enhancing supply chain efficiency.

Book a demo with Vizion to access all of their best API-based solutions:

1. Real-Time Container Tracking: Gain access to the most complete, standardized, and detailed container tracking events via API or user interface with real-time container tracking data.
2. TradeView: Monitor the live flow of any company's shipments 30 to 90 days before arrival at the destination and analyze trends across 10 years of historical supplier, product, and logistics movement data. With 900 million shipment records, 140+ attributes per shipment, coverage spanning 190 countries, and comprehensive HS code data, TradeView empowers data-driven decisions that optimize global trade management.

Logistics Performance Hub: Access a comprehensive suite of global logistics datasets, including Port Performance, Port Activity, and Port Pairs, to analyze shipping trends, port throughput, container dwell times, and real-time port activity, enabling smarter decision-making about containerized freight movements.