What You Need to Know About Ocean Marine Shipping

Ocean marine shipping is a complex and fascinating industry that plays a crucial role in global trade. It's responsible for transporting over 90% of the world's goods by volume, making it a vital part of the global economy.

The shipping industry is heavily reliant on containerization, with over 99% of non-bulk cargo being transported in containers. This has led to a significant increase in efficiency and reduced costs.

The largest container ships in the world can carry over 24,000 containers, equivalent to the weight of about 100 large buildings. These massive vessels are a testament to human ingenuity and the industry's drive for innovation.

Shipping routes and schedules are carefully planned to minimize transit times and maximize efficiency, with some routes taking as little as 14 days to complete.

Ocean marine shipping is a vital part of global trade, with over 90% of all the world's trade being carried by ocean transportation.

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It's a convenient option for shipping freight around the world, especially for shipments weighing more than 100kg or consisting of multiple cartons.

Ocean freight shipping involves transporting goods through designated sea lanes by container vessel.

This method is crucial for cross-border trade, allowing massive amounts of goods to be moved between countries.

There are several shipping options available, including full container load (FCL) shipping, which uses standard sized 20 or 40 ft containers, and less than container load (LCL) shipping, where shippers share container space.

Ocean freight isn't the only way to transport goods, as air cargo is also an option for small, light, or high-value products, but it's more expensive and has stricter regulations.

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Ocean marine shipping is a complex process, but let's break down the types of ocean marine shipping that exist.

You can transport a wide range of goods by ocean marine shipping, including heavy shipments that weigh more than 500 kg, which are often too expensive for air freight.

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One container can hold an astonishing 10,000 beer bottles, demonstrating the capacity of ocean freight.

Ocean marine shipping policies may include ocean marine insurance, which can protect your shipment against various risks.

Here are some examples of goods that are restricted or prohibited in ocean marine shipping due to their hazardous nature:

In contrast to air freight, ocean marine shipping has a significant environmental advantage, emitting only 150 kg of CO2 for 2 tonnes shipped 5,000 kilometers.

Ocean marine insurance provides comprehensive coverage for businesses involved in shipping goods across the ocean.

The policy covers the shipping vessel, also known as the hull, to protect against damage or loss.

Coverage also extends to the cargo being transported, ensuring that businesses are protected against losses due to damage, theft, or other unforeseen circumstances.

In addition to the vessel and cargo, the policy also covers the revenue made by the shipping company, providing financial protection against losses due to delays or other interruptions.

Liabilities associated with shipping are also covered, including legal liabilities for injuries to passengers, crew, and other personnel.

Here are some specific reasons why liability can arise:

Ocean cargo insurance is a must-have for businesses that ship goods by sea, providing financial aid for losses due to physical damage, theft, or looting.

Industrial materials like cement are more prone to damage during shipping, which is why they often come with a higher premium rate.

The shipping process can be unpredictable, and goods like cement are at risk of getting damaged, making ocean cargo insurance a crucial investment.

Ocean freight transport is the most common mode of transport, with a whopping 90% of goods shipped by sea, making it the go-to choice for importers and exporters.

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Ocean cargo insurance provides financial aid for losses arising from physical damage to onboard cargo in the event of risk at sea. This can include damage from bad weather, tidal waves, collisions, or even customs rejection.

Ocean freight transport is the shipping of goods by sea via shipping containers, and it's the most common mode of transport used by importers and exporters. A whopping 90% of goods are shipped by ocean freight and sea freight.

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Ocean freight rates can vary depending on the weight of the shipment. For instance, freight shipments weighing more than 500 kg become uneconomic to go by air freight.

Here's a rough estimate of ocean freight rates per kilogram: around $2-$4/kg for shipments over 500 kg, and $5-8 per kilo for shipments between 150 kg and 500 kg. This can make air freight a more economical option for smaller shipments.

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The nature of the goods you're shipping plays a significant role in determining the premium rate. Industrial materials like cement have a higher chance of getting damaged in the shipping process.

Perishable goods, such as food and flowers, are also at risk of damage and spoilage during transportation. This increases the premium rate to ensure they're handled with care.

Industrial materials like cement have a higher chance of getting damaged in the shipping process.

Hull and Machinery is a crucial aspect of ocean marine shipping. It provides coverage for damage from accidents, fire, collisions, explosions, or harsh weather.

A ship's machinery and operating equipment are susceptible to physical damage, which is why hull and machinery coverage is essential. This type of coverage includes collision liability coverage, which covers collisions at sea with other ships or fixed objects.

Ocean marine shipping comes with its own set of exclusions and risks that you should be aware of.

Passenger ships, such as ferries, are not included in commercial ocean marine policies. Employee strikes and civil riots are also not covered by these policies.

War-related damages or liabilities are not included in the coverage. The cost for repairing ship parts is also not covered by the policy.

Losses resulting from shipping delays or willful misconduct, such as negligence or recklessness, are not covered by the insurance policy. Natural wear and tear, like rust or hidden defects, is also not covered.

Ships that take riskier routes, such as those prone to pirate attacks or harsh weather conditions, are charged higher premiums.

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Ocean marine insurance policies have some key exclusions to be aware of.

Passenger ships, such as ferries, are not covered under commercial ocean marine policies.

Employee strikes and civil riots can lead to significant liabilities, but they are not included in ocean marine insurance coverage.

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War-related damages or liabilities are also excluded from coverage.

The cost of repairing ship parts is not covered by the policy.

Shipping delays can result in substantial losses, but ocean marine insurance policies do not provide coverage for these types of losses.

Willful misconduct, such as negligence or recklessness, is not covered by the policy.

Natural wear and tear, including rust, hidden defects, prolonged use, and temperature extremes, is not liable under the insurance policy.

Route risk is a significant factor in shipping costs, as some routes are riskier than others due to weather conditions and the likelihood of pirate attacks.

Ships that take these dangerous routes are charged higher premiums to compensate for the added risk.

The cost of shipping can vary greatly depending on the route taken, with some routes being significantly more expensive than others.

Higher shipping costs can be a major concern for businesses that rely heavily on international trade.

Some routes are riskier than others, and ships that take these routes are charged accordingly.

Pirate attacks and rough weather conditions can cause significant delays and damage to ships, leading to increased costs.

Destination Risk can significantly impact the cost of an ocean marine policy. Shipments to hard-to-reach geographical regions have expensive premiums.

For instance, if you're shipping goods to a remote island, you can expect to pay more for insurance. This is because it's often more challenging and costly to recover or replace goods in such locations.

Shipping to politically unstable locations can also increase the risk of cargo loss or damage, making premiums more expensive.

Loss History is a crucial factor in determining the premium of an ocean marine insurance policy. Claims history, nature of loss, and details of past claims all play a significant role in pricing the policy.

If clients have made multiple claims in the past, their premiums will be higher. This is because the loss history and exposure to loss factors are important elements to consider when determining the policy rate.

Factors such as claims history and nature of loss need to be considered before pricing the premium of an ocean marine insurance policy.

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The cost of ocean marine shipping can be a significant expense for businesses and individuals alike. The cost of ocean marine insurance is based on certain key factors.

The cost of any insurance policy depends on a few factors, and ocean marine insurance is no exception. The value of the goods being transported is a major factor in determining the cost of insurance.

Vessels carrying high-value items, such as electronics or luxury goods, require more expensive insurance policies. The type of goods being transported also plays a role in determining the cost of insurance, with hazardous materials or perishable goods often requiring specialized coverage.

The cost of ocean marine insurance can add up quickly, but it's a necessary expense to protect against loss or damage during transit.

The cost of insurance policies is determined by a few key factors, and ocean marine insurance is no exception. The cost of ocean marine insurance is based on certain key factors.

The cost of ocean marine insurance is influenced by the type of cargo being transported, with more valuable or hazardous goods increasing the premium. This is a common trend in various types of insurance.

The value of the goods being transported is a major factor in determining the cost of ocean marine insurance. The higher the value, the higher the premium.

The distance and route of the journey also play a significant role in determining the cost of ocean marine insurance. Longer routes and those considered high-risk increase the premium.

The level of coverage chosen by the policyholder is another factor that affects the cost of ocean marine insurance. More comprehensive coverage typically means a higher premium.

When shipping goods by ocean freight, it's essential to understand the various costs and charges that may appear on your quote. These charges can add up quickly, so it's crucial to know what to expect.

Customs security surcharges, such as AMS (Automated Manifest System) and ISF (Import Security Filing), are common charges you'll see on your ocean freight quote. These fees are mandatory and can vary depending on the type of cargo and the destination country.

Container Freight Station charges are another cost you might incur, particularly if you're shipping less-than-container-load (LCL) cargo. These charges cover the consolidation of goods at a central location before being loaded onto a ship.

Terminal Handling charges are fees imposed by the port authority for handling your cargo. These charges can vary depending on the port and the type of cargo being handled.

Customs brokerage fees are also a common cost associated with ocean freight. These fees cover the services of a customs broker who helps facilitate the clearance of your goods through customs.

Pickup and delivery fees are another cost to consider when shipping by ocean freight. These fees cover the transportation of your goods from the shipper to the consignee.

Insurance is a crucial cost to consider when shipping valuable or high-risk cargo. This cost can vary depending on the value of the goods and the level of coverage you choose.

Accessorial charges, such as fuel surcharges and handling hazardous materials fees, can also add up quickly. These charges are typically billed separately from the base freight rate.

Here are some common ocean freight costs and charges you might see on your quote:

Ocean Network Express (ONE) boasts an impressive fleet of container vessels, with a total of 240 ships at its establishment. This includes 31 container ships with a capacity of 14,000 TEU or higher, with 6 of them having a massive 20,000 TEU capacity.

ONE's fleet is comprised of various ship classes, each with unique characteristics. The NYK Vega-class, for example, was built between 2006 and 2007 and has a capacity of 9,012 TEU.

Here's a breakdown of ONE's container ship classes:

The type of vessel you choose can greatly impact the shipping process. A vessel's construction material, adaptability, and structural strength affect its ability to carry different cargo.

The construction material of a vessel can range from steel to aluminum, each with its own set of benefits and drawbacks.

A vessel's adaptability is also crucial, as it needs to be able to handle various types of cargo. The vessel's age, classification, and shipping company also play a significant role in determining the policy's cost.

At the heart of Ocean Network Express's operations is a fleet of 240 container vessels, including some of the largest and most advanced ships in the world.

The fleet boasts 31 container ships with a capacity of around 14,000 TEU or higher, with 6 of those vessels having a massive 20,000 TEU capacity.

Container ship classes vary in size and capacity, with the NYK Vega-class being one of the smaller classes, with 4 ships built between 2006-2007 and a capacity of 9,012 TEU.

The Millau Bridge-class, on the other hand, is one of the larger classes, with 10 ships built between 2015-2018 and a capacity of 13,900 TEU.

The MOL Triumph-class is the largest class, with 6 ships built between 2017-2018 and a capacity of 20,170-20,182 TEU, making them the world's largest container ships when delivered.

Here's a breakdown of the different container ship classes in the Ocean Network Express fleet:

The fleet is constantly evolving, with new ships being added and old ones being retired. The company plans to conduct a tonnage review within 18 months to ensure it remains competitive on all services.

Our East-West Network is an innovative shipping solution that's designed to provide unmatched reliability. It's powered by leaner loops with fewer port calls per service.

This network boasts an extensive shuttle network, which helps to streamline logistics and reduce transit times. Industry-leading hubs are also a key feature, providing a high level of efficiency and flexibility.

With a focus on delivering a flexible and well-connected ocean network, the Maersk East-West Network aims to provide industry-leading reliability above 90 percent.

We offer a range of shipping options to suit your needs, including freight shipping by sea. This is a cost-effective and efficient way to transport goods, especially for heavy shipments weighing more than 500 kg.

Ocean freight is generally cheaper than air freight, and it's also more flexible with fewer restrictions on what goods can be transported. For example, gases, flammable items, and toxic substances are often restricted as air cargo, but can be transported by sea.

Our East-West Network is a reliable and flexible ocean network that aims to provide unmatched reliability above 90 percent. This is achieved through leaner loops with fewer port calls per service and an extensive shuttle network.

We offer two main types of ocean freight services: full container load (FCL) and less than container load (LCL). FCL is generally faster and more reliable, but LCL can be more cost-effective for smaller shipments.

Here are some key differences between FCL and LCL:

The tipping point for upgrading from LCL to FCL is around 15 cubic meters, making FCL a more cost-effective option for larger shipments.

Ocean freight rates can vary significantly depending on the mode of transport, distance, shipment volume, weight, and dimensions, as well as market conditions and seasonal fluctuations.

Freight shipping rates are made up of several key components, including the base freight rate, bunker adjustment factor, currency adjustment factor, terminal handling charges, and surcharges.

The base freight rate is the basic cost of shipping your goods from the port of origin to the port of destination. It's a crucial factor in determining the overall cost of your shipment.

Bunker adjustment factor (BAF) is a surcharge that accounts for fluctuations in fuel prices, and it can have a significant impact on your shipping costs. Currency adjustment factor (CAF) is another surcharge that compensates for exchange rate fluctuations.

Terminal handling charges (THC) are fees charged by the port authorities for handling containers at the origin and destination ports. These charges can add up quickly, so it's essential to factor them into your budget.

Here are some estimated costs for ocean freight:

Keep in mind that these estimates are based on a China-US shipment. If you're shipping to a different region, your costs and transit times may vary.

Your goods are packaged and possibly palletized either at the factory or by a third party.

Your freight forwarder books space on a container vessel and your goods are shipped to the port to undergo a customs exam at the point of origin.

Goods are then containerized into full containers or shared containers depending on whether you are shipping FCL or LCL.

The cargo is loaded onto the ship for transportation.

The ship arrives at the destination port, and goods pass through customs.

Any duties and taxes are paid, and once cleared, your goods are released.

Your goods are shipped to a warehouse to be delivered to the final customer.

Ocean freight may not be the most appealing option for everyone, and for good reason. Speed is a major concern, as ocean liners move at a snail's pace of 16-18 mph, while passenger jets cruise at 575 mph.

This means that a shipment going by air freight from China to the US can take at least 20 days more than by ocean freight. It's a significant difference that can impact the timely delivery of goods.

Reliability is another issue with ocean freight. Port congestion, customs delays, and bad weather conditions can add days to the transit time, making it less reliable than air freight. In fact, tracking technology in air freight is often more advanced, making it less likely to get misplaced.

Ocean freight is also more prone to damage or destruction than air cargo. This is because it spends a lot more time in transit, and ships are more subject to movement. While it's rare for cargo to fall off ships, it does happen – with 546 out of 120 million container movements per year ending up in the drink.

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