What is Sea Freight? All Your Questions Answered

For centuries, sea freight has remained a cornerstone of international logistics, providing an efficient means for transporting large volumes of cargo across oceans.

Whether it’s raw materials for manufacturing or finished products for consumers, sea freight plays a crucial role in the supply chain, making it an essential consideration for businesses of all sizes across all industries.

In this article, we’ll explore the fundamentals of sea freight, including its costs, shipping times, and the factors influencing rates.

By understanding the intricacies of sea freight, businesses can make informed decisions to refine their shipping strategies and improve their operational efficiency.

What is Sea Freight?

Sea freight refers to the transportation of goods via cargo ships across oceans and seas.

It is a vital method for moving large volumes of cargo, including raw materials, finished products, and bulk items.

This mode of transport is particularly favoured for international shipping due to its capacity to handle significant quantities at a lower cost compared to other shipping methods, such as air freight.

Why Is Sea Freight Increasing?

The demand for sea freight services has been on the rise due to global trade expansion and e-commerce growth.

Factors such as supply chain disruptions, increased shipping volumes, and a limited number of available vessels can lead to increased rates.
Also, environmental regulations and the need for more sustainable practices are influencing shipping companies to adapt their operations, which can also affect pricing.

Why Is Sea Freight Cheaper Than Air Freight?

Sea freight is typically more economical than air freight for several reasons.

Firstly, cargo ships can transport much larger loads, which allows costs to be distributed over a greater volume, reducing the per-unit shipping price.

Furthermore, sea freight operations incur lower overhead costs compared to air transport, which incurs higher fuel consumption and maintenance expenses.

As a result, businesses often choose sea freight for bulk shipments that are less time-sensitive.

What Are Sea Freight Charges?

There are various fees associated with transporting cargo by sea, including base freight rates, terminal handling charges, customs duties, and surcharges for additional services, such as insurance or special handling.

Understanding these charges is crucial for businesses to accurately budget for their shipping expenses and avoid unexpected costs.

How to Calculate Chargeable Weight for Sea Freight

Calculating the chargeable weight for sea freight is essential for determining shipping costs accurately.

Chargeable weight is based on the greater of the actual weight or the volumetric weight of the cargo.

Here’s how to calculate it:

1. Measure Actual Weight: Weigh the cargo using a scale to get the actual weight in kilograms (kg).

2. Calculate Volumetric Weight: Use the dimensions of the cargo to find the volumetric weight. This is typically calculated with the formula: Volumetric Weight = (Length × Width × Height) / 6000.

Ensure that the dimensions are in centimetres (cm) for this calculation.

3. Compare the Weights: Once you have both the actual weight and the volumetric weight, compare them. The chargeable weight will be the higher of the two.

By using this method, shippers can ensure they are charged appropriately based on the space their cargo occupies in the shipping container, ultimately leading to more accurate and fair shipping costs.

Why Are Sea Freight Rates So High?

While sea freight is generally more affordable than air freight, shipping rates can fluctuate.

Fluctuations in fuel prices, port fees, and increased demand for shipping services can drive costs up.

Also, the complexities of logistics, such as customs clearance and handling charges, can contribute to higher overall expenses for sea freight.

How Long Does Sea Freight Take?

The duration of sea freight can vary significantly based on factors such as the shipping route, port congestion, and weather conditions.

Shipping times can range from a few days to several weeks.

For example, shipments between neighbouring countries may only take a couple of days, while longer international routes can take 20 to 40 days or more. It’s important for shippers to factor in these timelines when planning their logistics.

Are You Seeking a Sea Freight Provider?

If you’re looking for a reliable provider to handle all your sea freight needs, please contact the professional team at MCL today.