A brief about ocean freight Service

 Sea freight or ocean freight refers to international shipping of commodities by sea. Ocean freight shipping is a well-known option that provides shippers with transportation services at a reasonable price point for anyone sending cargo internationally. Given that most of our earth is covered by oceans and waterways, it is one of the most accessible methods for freight transportation.

You will discover everything you need to know about ocean freight in this post, including why you use sea or ocean freight, how it operates, etc.


Why use sea freight?


There are undoubtedly other ways to transport cargo. However, did you know that sea freight is the most popular method of freight transportation service. Some 80% of world trade is moved in container vessels that plough the seven seas.




How does shipping by sea work?


Freight forwarders act as middlemen for sea freight. They act as a third-party logistics provider, from collecting the cargo to delivering it to the required destination. Crucial details need to be considered throughout this procedure. Reading the shipping contract is one of the most critical steps. This is the contract between the seller and purchaser of the cargo


Some businessowners search websites in order to understand specific contractual terms. We want to keep you from making incorrect decisions in terms of the contract. The contract is bound by international commercial terms (Incoterms) and operates under agreed international  standards for each party.


Some of the incoterms used frequently include –


FOB (Free On Board)


Under the terms of FOB (short for “Free on Board”), the seller customs clears the goods for export and ensures they are delivered to and loaded onto the vessel for transport at the named port of departure. The freight forwarder arranges this, and the seller pays the FOB costs – all other transport costs are for the account of the buyer.



EXW (Ex Works)


This rule places minimum responsibility on the seller, the seller has to make the goods available, suitably packaged, at the specified place, usually the seller’s factory or depot.


The buyer is responsible for loading the goods onto a vehicle (even though the seller may be better placed to do this); for all export procedures; for onward transport and for all costs arising after collection of the goods. So, in this case the buyer pays all the charges.



DDP (Delivered Duty Paid)


In this case the actual import tax and duties of the destination country are included in the overall transport costs. You can contact us freely if you are looking for the best ocean freight transportation service.

 

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