What is Ocean Freight? Ocean Freight Review

Ocean freight is broadly defined as all sea-related transport operations. However, up to now, when we talk about ocean freight, we generally refer to maritime transportation, such as bulk cargo transportation, container transportation and other port-to-port maritime transportation.

About Ocean Freight

With the development of the shipping Internet, especially the recent development of Internet giants such as Aichuan.com and Alibaba, the future definition of shipping may cover both sea and land, and is expected to develop into a transportation industry that integrates door-to-door ocean and land transportation.

The basic elements of ocean transportation include: ships, routes and ports.

Shipping routes classification

1. By ship operation mode

(1) Scheduled routes refer to routes that use fixed ships, sail according to fixed schedules and ports, and operate passenger and cargo transportation business at relatively fixed freight rates. Scheduled routes are also called liner routes, and they mainly transport general cargo.

(2) Irregular routes are routes chosen temporarily based on cargo transportation needs. The ships, sailing schedules, ports of call are not fixed and these routes are mainly engaged in the transportation of large quantities of low-cost cargo.

2. According to the distance of the flight

(1) Ocean-going shipping lines refer to shipping lines with long voyage distances and ships sailing across the ocean, such as the routes from the Far East to Europe and America. In my country, it is customary to use the Port of Aden as the boundary and classify the routes to the west of the Port of Aden, including both sides of the Red Sea and Europe and the vast areas of North and South America as ocean-going shipping lines.

(2) Near-sea shipping line refers to the sea shipping lines between ports in a country and ports in neighboring countries. In my country, the routes to Asia and Oceania east of the port of Aden are usually called near-sea shipping lines.

(3) Coastal Shipping Line refers to the sea transport route between ports along the country’s coast, such as Shanghai/Guangzhou, Qingdao/Dalian, etc.

3. According to the scope of navigation

(1) Atlantic route;

(2) Pacific routes;

(3) Indian Ocean route;

(4) Global routes.

Ship operation mode

According to the operation mode of ships, ocean transportation can be divided into two categories: liner transportation and charter transportation.

1. Liner shipping

(1) Concept: Liner shipping refers to a mode of transport in which ships sail regularly and repeatedly on specific routes and between established ports according to a pre-determined sailing schedule to engage in cargo transportation business and charge freight according to a pre-announced rate schedule. Its service objects are non-specific and dispersed numerous cargo owners, and liner companies have the nature of public carriers.

(2) Characteristics: Liner shipping has fixed sailing schedules, routes, ports of call and relatively fixed freight rates. Liner freight rates include loading and unloading charges, so the loading and unloading at the port of liner is the responsibility of the shipowner. The quantity of cargo carried by liner is relatively flexible, and cargo owners can book cargo space on demand, which is particularly suitable for the transportation of general cargo and container cargo.

(3) Freight: Liner freight is stipulated by the liner freight rate, including basic freight and various surcharges. Basic freight is divided into two categories: one is the traditional general freight rate; the other is the container parcel rate. There are many types of surcharges in liner freight, including: extra-length surcharge, overweight surcharge, surcharge for selecting the discharge port, surcharge for changing the discharge port, fuel surcharge, port congestion surcharge, detour surcharge, transshipment surcharge and direct flight surcharge.

2. Chartering

(1) Concept: Chartering is a method in which the charterer leases a ship from the shipowner for the transportation of goods, which is usually applicable to the transportation of bulk goods. The relevant routes and ports, types of goods to be transported, and sailing time are all confirmed by the shipowner in accordance with the charterer's requirements. The rights and obligations between the charterer and the lessor are determined by the charter contract signed by both parties.

(2) Chartering method:

① Voyage charter: Voyage charter is a charter based on the voyage, also known as voyage charter. The shipowner must complete the cargo transportation task according to the voyage specified in the charter contract, and is responsible for the operation and management of the ship and all expenses during the voyage. The freight of voyage charter is generally calculated according to the quantity of cargo shipped, and can also be calculated according to the voyage charter amount.

② Time charter: Time charter is a way of renting a ship for transportation for a certain period of time, also known as period charter. The shipowner shall provide a seaworthy ship during the lease period specified in the contract and bear the relevant expenses for maintaining seaworthiness.

Main ship types

1. General cargo ship transportation

(1) Concept: General cargo ship transport is also called ordinary cargo ship. It is the earliest and most basic type of cargo ship, mainly used to transport various general cargoes.

(2) Characteristics: The outstanding characteristic of general cargo ships is their strong adaptability to cargo types and terminal conditions.

(3) Disadvantages: Its disadvantages are low loading and unloading efficiency and small bulk of general cargo, which results in a low deadweight tonnage of this type of ship, generally around 20,000 tons.

2. Bulk carrier transport

(1) Concept: Bulk carriers are ships that are specially used to transport bulk cargoes such as grain, coal, and ore. The structural characteristics of this type of ship are that they are mostly single-deck ships with stern engines, large hatches, and are mostly not equipped with cargo handling equipment.

(2) Type:

① General-purpose bulk carrier: a ship used to transport ordinary bulk cargo such as grain and coal.

② Ore carrier: a bulk carrier specially used for transporting ore.

③ Self-unloading bulk carrier: a bulk carrier that uses a self-unloading system.

3. Container ship transportation

(1) Concept: Container ships refer to ships that are mainly used to transport containerized cargo and are specially used to transport standard containers of uniform specifications. At present, container ships mainly refer to full container ships. The entire cargo hold and upper deck of this type of ship are loaded with containers, and it is suitable for routes with sufficient and stable cargo supply.

(2) Advantages:

① Fast loading and unloading speed and short port time. Therefore, the time the ship spends at the port for loading and unloading operations can be greatly saved.

② Strong transport capacity. The tonnage and speed of container ships are relatively high, which improves the transport capacity of container ships.

③ Low labor intensity. Due to the change in loading and unloading methods, loading and unloading work has been mechanized, so the labor intensity of workers can be greatly reduced and the number of workers can be greatly reduced.

④ Increased port throughput capacity. Due to high loading and unloading efficiency and short port stay time, port utilization and throughput capacity are improved.

⑤ Less cargo damage and loss. Because the goods are loaded in containers, the damage and loss of packaged "piece goods" during transportation are avoided.

4. RoRo transport

(1) Concept: A ship that uses a semi-trailer loaded with containers and other "breakbulk goods" or a pallet with wheels loaded with goods as a freight unit and is loaded and unloaded directly in and out of a cargo ship by a tractor or forklift through an opening at the side, bow or stern is called a ro-ro ship.

(2) Advantages: It saves the link of cargo transfer and loading and unloading between ships and ports, reduces the investment in terminal equipment, avoids port congestion, and facilitates "door-to-door" transportation from the shipping point to the destination. It also facilitates the distribution of cargo from large ports to small and medium-sized ports, making the entire transportation process more rational. At the same time, it can be loaded and unloaded in ports or river banks without modern loading and unloading equipment or with incomplete equipment, thus completing tasks that container ships and general cargo ships cannot complete.

(3) Disadvantages: Loading and unloading operations are limited by the slope of the ramp, the utilization rate of the cabin volume is low, the empty ship weight is large, and the cost is high. In terms of performance, it has high requirements for stability, anti-sinking and ventilation, and certain measures must be taken to meet them. Ro-ro ships have low requirements for docks, high loading and unloading efficiency, and fast ship speed, but the utilization rate of cabin volume is low and the cost is high. At present, ro-ro ships are also developing in the direction of large-scale.

5. Oil tanker transportation

(1) Concept: Oil tankers are ships that are used to transport crude oil or refined oil. Oil tankers are large in tonnage and are generally called oil tankers. Oil tankers are mostly single-deck ships with a stern engine.

(2) Modern oil tankers: Modern oil tankers have double hulls and are equipped with dedicated ballast tanks to meet the requirements of the 1973 International Convention for the Prevention of Pollution from Ships and the 1978 Protocol.

Export method

1. FCL export: it is export in the form of containers. Bulk export is small CBM, or relatively small goods. Bulk export will be chosen when the customer does not need it urgently. FCL export and bulk export are the more commonly used export methods for sea transportation.

2. Export by bulk ship: Export by bulk means that a lot of goods are piled on the plywood. The goods are relatively mixed, usually some large machines, or materials for heavy industry, some fertilizers, grains, etc. will be exported by bulk ship. It is less used and the ship may not necessarily dock at the port.

3. Ro-ro export: refers to the export of goods by directly loading them onto the ship through openings at the bow and stern or both sides of the ship, or by placing them on a gangway at the dock, using a trailer or forklift. Generally, only cars are exported in this way, and it is rarely used. The ship hardly docks at the port all year round.

Terminal Classification

1. Professional wharf: Compared with comprehensive wharf, it is a wharf dedicated to loading and unloading a certain type of cargo and flow of cargo, such as coal wharf, fertilizer (bulk or bagged) wharf, oil wharf, container wharf, etc.

2. Container terminal: A terminal dedicated to container loading and unloading. It generally has special loading and unloading and transportation equipment, a wide yard for collecting and storing containers, and a container freight station for cargo classification and container loading and unloading.

3. Cargo Owner's Wharf: In order to reduce reverse loading and short-distance transportation and reduce product costs during the transportation of raw materials, fuels and finished products, factories and mines along rivers, lakes and seas usually build wharves near the enterprises. This type of highly professional wharf is called a cargo owner's wharf.

4. Oil terminal: A specialized terminal for loading and unloading crude oil and refined oil. It must be at a certain fire safety distance from ordinary cargo terminals and other fixed buildings, see "Oil Port".

5. Comprehensive wharf: also known as general wharf. A wharf that can handle a variety of cargo loading and unloading operations, using general loading and unloading machinery and equipment, and generally mainly loading and unloading general cargo.

Advantages of Ocean Shipping

1. Natural waterway: not restricted by roads or tracks, with stronger passing capacity, the route can be adjusted and changed at any time to complete the transportation task.

2. Large transport volume: The loading capacity of super-giant cruise ships is more than 600,000 tons, and the loading capacity of the fifth-generation container ships has exceeded 5,000TEU (TEU is a standard container, which is the statistical unit of container usage, with a 20-foot-long standard container as the standard).

3. Low freight: Sea transport routes are naturally formed, port facilities are generally built by the government, ships have large carrying capacity, long service life, long transportation distance, and low unit transportation cost.

Disadvantages of Ocean Freight

1. Restricted by climate and ports: In case of bad weather such as storms and fog, it is necessary to take shelter in time. After the cargo ship arrives at the port, the harbor water depth or loading and unloading equipment and other hardware will also affect the cargo ship's entry into the port and operation.

2. It is impossible to provide direct "door-to-door" service: Due to the limitations of waterways and ports, the accessibility and flexibility of sea transportation are not high, and the cooperation of the ground transportation system is often required to complete the entire process of cargo transportation.

3. Low speed: Because large ships are large in size and the water flow resistance on the route is high, the speed is generally low and the timeliness of freight delivery is poor.

The role of shipping

1. Ocean cargo transportation is the main mode of international trade transportation.

Although international ocean cargo transportation has the disadvantages of lower speed and higher risk, it has become the main mode of transportation in international trade due to its advantages such as large throughput capacity, large volume, low freight, strong adaptability to cargo, and unique global geographical conditions.

2. Maritime cargo transportation is one of the important channels for the country to save foreign exchange payments and increase foreign exchange earnings.

Freight expenditures in my country generally account for about 10% of the total foreign trade imports and exports, especially the freight of bulk goods accounts for a larger proportion. If we make full use of international trade terms in trade and strive to send more ships, we can not only save foreign exchange payments, but also strive for more foreign exchange income. In particular, we should invest our shipping capacity in the international shipping market and actively carry out transportation to third countries to create foreign exchange income for the country. At present, countries around the world, especially coastal developing countries, attach great importance to building their own ocean-going fleets and focusing on the development of marine cargo transportation. In some shipping-developed countries, foreign exchange freight income has become an important pillar of the national economy of these countries.

3. The development of the maritime transport industry is conducive to improving the country's industrial structure and the structure of international trade export commodities.

Ocean transportation is achieved through the practice of maritime activities, and the foundation of maritime activities is shipbuilding, navigation technology and seafarers who master the technology. The shipbuilding industry is a comprehensive industry, and its development can drive the development of the steel industry, ship equipment industry, and electronic instrumentation industry, and promote the improvement of the industrial structure of the entire country. Due to the development of the ocean transportation industry, my country's ocean-going shipping fleet has entered the top 10 in the world, providing conditions for large-scale shipbreaking in the future, not only providing cheap raw materials for my country's steel mills to smelt, saving energy and consumption of imported ore, but also exporting scrap steel. It can be seen that the development of the ocean transportation industry can not only improve the national industrial structure, but also improve the commodity structure in international trade.

4. The ocean transport fleet is an important reserve force for national defense.

Ocean-going transport fleets have always been used as logistical transport tools during wartime. The United States, Britain and other countries call merchant fleets "the fourth military service besides land, sea and air forces", and the merchant fleet of the former Soviet Union is also called the "shadow fleet" by Western countries. It can be seen that it plays a role in the victory or defeat of the war. Because ocean transportation occupies such an important position, countries around the world attach great importance to the maritime shipping industry, protect it through legislation, support and subsidize it financially, and give preferential treatment in terms of cargo.

Shipping Terms

The shipping clause is a basic clause in a ship insurance contract. my country has also stipulated clauses in the ship insurance clauses in reference to international marine insurance practices. Its main purpose is to require that the insured ship cannot engage in marine towing or salvage services; it cannot directly load and unload cargo at sea with other ships (small boats not used in ports or coastal areas), including approaching, docking and leaving; the insured ship is prohibited from sailing for the purpose of shipbreaking or selling for shipbreaking. Within this restriction, the insurer shall bear the insurance liability unless the insured obtains the insurer's consent in advance and accepts the modified insurance conditions and pays the required insurance premium, or takes out voyage insurance for the voyage for shipbreaking or selling for shipbreaking. Otherwise, the insurer shall not be responsible for the losses caused and the liability to third parties.

International regulations

The International Maritime Dangerous Goods Code (IMDG CODE) is promulgated by the International Maritime Organization (IMO) to protect crew members and reduce marine pollution by ensuring the safety of dangerous goods shipping. When formulating domestic laws and regulations, each member state can also refer to the relevant chapters of the IMDG and make changes to the relevant clauses according to the specific domestic conditions.

The regulations require all member states of the International Convention for the Safety of Life at Sea (SOLAS) and the International Convention for the Prevention of Pollution from Ships (MARPOL 73/78) to enforce the IMDG regulations. The regulations are not limited to sailors, and all shipping-related industries and shipping service personnel may use some of the regulations. The regulations consist of: professional terminology, packaging, labels, placards, markings, stowage, isolation, handling and emergency response. The International Maritime Organization revises the IMDG CODE every two years.