overseas shipping

What Is Sea Freight Shipping?

Ocean transportation, also known as “international ocean cargo transportation“, is the most important mode of transportation in international logistics. It refers to a way of using ships to transport goods between ports in different countries and regions through sea lanes, and is most widely used in international cargo transportation. More than 2/3 of the total volume of international trade, and about 90% of China’s total import and export freight are transported by sea. Ocean shipping has changed the world enormously

How to Save Money on Overseas Shipping Costs

Understanding the Different Types of Shipping Costs

To reduce shipping costs, it’s important to understand the different types of shipping costs that can affect your business. These costs include freight charges, customs fees, insurance, taxes, and other charges that may vary depending on the shipping destination and the type of item being shipped. Understanding these costs will help you better plan and budget for your shipping expenses.

Freight charges are the most significant cost associated with shipping, particularly for international shipments. These charges depend on several factors, including the weight and size of the package, the shipping destination, and the shipping method. Other costs, such as customs fees, taxes, and insurance, can also add up quickly, particularly if you’re shipping to countries with strict customs regulations.

One way to reduce shipping costs is to work with a shipping carrier that offers discounted rates for small businesses. Many carriers offer special rates for companies that ship frequently or in large volumes, so it’s worth exploring these options to see if you can save money on shipping.

Factors Affecting Overseas Shipping Costs

There are several factors that can affect the cost of overseas shipping. Some of the most significant factors include the shipping destination, the size and weight of the package, the shipping method, and the time frame for delivery.

Shipping to certain destinations may be more expensive than others, particularly if you’re shipping to countries with strict customs regulations or high import taxes. The size and weight of the package will also affect shipping costs, as carriers charge more for larger and heavier packages. The shipping method you choose can also impact shipping costs, with air freight generally being more expensive than sea freight.

Finally, the time frame for delivery can also affect shipping costs. Express shipping services, such as overnight or two-day shipping, are generally more expensive than standard shipping services.

Strategies for Reducing Overseas Shipping Costs

There are several strategies that small businesses can use to reduce overseas shipping costs without sacrificing quality or reliability. These strategies include:

Choosing the Right Shipping Carrier

Choosing the right shipping carrier is an essential part of reducing shipping costs. Look for carriers that offer discounted rates for small businesses, as well as carriers that specialize in international shipping. Compare rates and services from multiple carriers to find the best option for your business.

Negotiating with Shipping Carriers

Negotiating with shipping carriers can also help you save money on shipping costs. If you’re shipping frequently or in large volumes, you may be able to negotiate better rates with your carrier. You can also negotiate discounts for specific services, such as express shipping or customs clearance.

Tips for Packaging and Labeling

Proper packaging and labeling can also help reduce shipping costs. Use packaging materials that are lightweight but durable, and avoid oversized packaging that can add to shipping costs. Use accurate and detailed labeling to avoid delays and additional fees.

Tracking and Managing Overseas Shipments

Tracking and managing overseas shipments is critical to reducing costs and ensuring timely delivery. Use online tracking tools to monitor shipments and identify potential issues before they become bigger problems. Consider using a shipping management platform to help streamline your shipping operations and reduce costs.

Automation Tools for Reducing Shipping Costs

Finally, consider using automation tools to reduce shipping costs. These tools can help automate shipping processes, such as printing shipping labels and generating customs documents, saving time and reducing errors. Many shipping management platforms offer automation tools that can help small businesses streamline their shipping operations and reduce costs.

What Are Types Of International Sea Freight Shipping Available?

1. Bulk: a non-mainstream mode of transportation, but the profit is huge. It mainly involves low-value products. The imported commodities mainly include: coal, ore, grain, chemical fertilizer, feed, barley and other products, and the export has coke , Bauxite and other products. It is usually transported by bulk ship.

2. Container transportation: The emergence of containers is a milestone in the history of shipping development. It has changed the trade pattern of the world. Its specifications mainly include 20GP, 40GP, and 40HC, in addition to refrigeration, frame, open top, and fuel tank. 20GP is also a standard box, expressed in TEU

Each container will have a container number, the first 4 letters followed by 7 Arabic numerals, for example: AMSU4567898. When the container is loaded, it will be sealed with the lead seal provided by the shipping company, and each lead seal has a number. Once the box is opened, the lead seal will be damaged, and it is easy to distinguish the responsibility for the loss of the goods. As long as the shipping company transports the heavy container to the designated place and ensures that the lead seal is intact, the shipping task will be completed.

Container loading needs to be transported by a special container ship. The carrying capacity of the mother ship is generally 2000-6000 TEU, and the carrying capacity of the barge is generally 200-400 TEU. (The barge is also called a sub-ship or a small ship, and the mother ship is also called a large ship or a sea-going ship.) Each ship has a specific ship name, and also has a voyage number, which is different from an air flight number. .XXXE to indicate, the mantissa is E means export, the mantissa is W means import

Common Trade Terms For Overseas Shipping

FOB – that is, free on board (… designated port of shipment). It means that the seller delivers the goods over the ship’s rail at the designated port of shipment, and the buyer must bear all the costs, risks, loss or damage of the goods after passing the ship’s rail, and requires the seller to go through customs clearance procedures for the goods. This term applies to sea or inland waterway transport.

Therefore, FOB goods are usually designated goods, usually foreign customers designate the consignor, consignee, notifier, designated shipping company, designated sea freight sales price, sales cost, and sometimes the freight forwarding company and so on.

In this case, the freight forwarder can only earn an agency fee, but if the volume of goods is stable, the profit can also be considerable. At present, the goods exported by FOB have accounted for 80% of China’s total export goods, and a pattern has been formed in which overseas customers designate domestic freight forwarders to provide services for them

CFR or C&F—that is, cost and freight (…named port of destination). It means that the seller must pay the expenses and freight required to transport the goods to the designated port of destination, but after the goods are handed over to the deck of the ship, the risks, loss or damage of the goods, and the additional expenses caused by accidents will not be resolved when the goods pass through the designated port. After the ship’s rail, it is the responsibility of the seller to the buyer. In addition, the seller is required to go through customs clearance procedures for the export of the goods. This term applies to sea or inland waterway transport.

CIF——that is, cost, insurance and freight (…named port of destination). It means that in addition to the seller having the same obligations as the cost-and-freight term, the seller must also purchase marine insurance and pay the insurance premiums for the loss or damage of the goods during transportation. This term applies to sea or inland waterway transport.

Conclusion and Final Thoughts

Reducing overseas shipping costs is essential for small businesses looking to remain competitive and profitable. By understanding the different types of shipping costs and the factors that affect them, small businesses can take steps to reduce shipping expenses without sacrificing the quality of their shipping services.

Choosing the right shipping carrier, negotiating rates, optimizing packaging and labeling, tracking and managing shipments, and using automation tools are all effective strategies for reducing shipping costs and keeping your bottom line in check.