What do you need to know about shipping freight internationally? We’ve got a few common questions (and answers) here.
1. What is Ocean Freight?
Most freight shipped intercontinental is transported via sea vessel in containers. This is rarely the only component to international shipping however. A reference to ocean freight cost usually refers only to the cost associated with the actual ocean-crossing portion of the shipment. Transportation of the freight to and from container yards at the ports of origin and destination is provided by trucks and are not part of an ocean freight charge. (Depending upon the destination country, a freight transportation management service can provide assistance with inland transportation after the container is unloaded at the port as well.)
2. Surcharges in Ocean Freight
Additional charges included in an international ocean freight price quote will generally include basic sea freight charges to cover the port-to-port transportation, a fuel surcharge, security charges, documentation fees and container delivery charges.
3. What is a Container Yard (CY)?
A Container Yard (CY) is a facility at which loaded and empty freight containers are accepted for loading onboard vessels. Containers are also off-loaded and stored at CYs.
4. What is FOB?
FOB stands for Free on Board. It is used to indicate when liability and ownership of goods is transferred from a seller to a buyer. In international shipping, “FOB [name of originating port]” means that the seller (consignor) is responsible for transportation of the goods to the port of shipment and the cost of loading. The buyer (consignee) pays the costs of ocean freight, insurance, unloading, and transportation from the arrival port to the final destination. The seller passes the risk to the buyer when the goods are loaded at the originating port.
5. What is “Live Load” and “Drop and Pick”?
When getting a price quote for international shipping, specifically for ocean freight, a shipper should be sure to know the difference between live load and drop and pick. Pricing and responsibilities are different with each option.
In a live load arrangement, a driver will transport an empty freight container to the shipper. After the shipper loads the container, the driver will secure and seal the container for transport. There is generally a time limit in which the load must be completed without additional cost.
If a shipper chooses a drop and pick, the driver will deliver a freight container, leaving it for a few days. After it is loaded, the driver is called back to retrieve it and take it to the appropriate container yard (CY). This option is generally more expensive unless the loading location is very close to the CY.
6. What are the necessary shipping documents used in international shipping?
The international shipping experts at a freight transportation management service can assist any shipper with all shipping documents required by a carrier and/or by law.
Some common documents required in an international shipment are bill of lading (BOL), a commercial invoice or valued inventory list, packing list with pieces, weight and packing materials described, fumigation certificate, visa/quota, certificate of origin, hazardous materials declaration and other legal documents.
7. What is an ocean freight Bill of Lading?
An Ocean Freight Bill of Lading (BOL) is a document issued by the carrier indicating that certain goods have been received on board for transport to a specific place and consignee. The BOL is legally significant because it represents the contract between carrier and shipper. It also serves as receipt and document of title to the goods.
8. What is SED (Shipper’s Export Declaration)?
Many shippers must also complete a Shipper’s Export Declaration or SED. An SED is a form used by the U.S. Government to compile export statistics for the country. Certain shipments are exempt from reporting. The form is available from the U.S. Census Department. Ask your freight transportation management service for more information on SEDs.
9. Is ocean freight insured?
Most ocean freight carriers contractually limit their liability for damage to cargo. The dollar limitation varies from carrier to carrier but is typically relatively low. A shipper should be sure to find out exactly what the limitation is before shipping.
The shipper should then probably purchase extra insurance for the shipment prior to tendering the cargo to the carrier. Questions about coverage and insurance certificates can be answered by your service representative.
International shipping quotes are easily available through our web-based freight transportation management service online quoting system. After a shipper has had the opportunity to compare available shipping options, any additional questions can be handled directly by our experienced personnel.