What are the advantages of ocean freight?
- Cost Effective – transporting containers of goods by ship is the one of the most cost effective forms of transport, which is important supply chain management and operations within a business and can help keep the price of goods competitive for the end customers
- Heavy goods – for items that are big or heavy, shipping might be the only way to get goods overseas, as airlines can restrict form of transport and shipping ports generally have large storage capabilities
- Environmentally Friendly – ocean freight is the most environmentally friendly form of transport for cargo, which can help boost the companies brand and reputation
Types of Ocean Freight
There are four major types of shipping terms that you should know about, also known as incoterms (International Commerce Terms), which set out clear definitions for where the goods are dispatched from, and to.
- EXW, or ExWorks means the supplier transports the goods to the factory or manufacturer.
- FOB, or Free on Board, which delivers to the port or terminal in the country of the supplier.
- CIF, or Cost, Insurance and Freight, which covers transport to the buyer’s country
- DAP/ DDU, or Delivery at Port / Delivery and Duty, Unpaid, which delivers all the way to your facility or warehouse, excluding the cost of tariffs and taxes
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