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Ocean Shipping Methods

Ocean Shipping
It is normally best to use ocean-going cargo vessels to transport heavy or bulky goods and liquids. Here, reasonable speed and safety is combined with a relatively economical cost.

In shipping your goods by sea, you can choose from different types of ocean shipping: conference lines, non-conference lines, tramp shipping lines, or the national flag lines.

 

Conference lines charge two different
shipping rates for the goods carried.

The lower rate is available to exporters who sign an exclusive patronage contract whereby they agree to use only the conference line ships for their goods on the routes served by the conference lines.

Exporters who have not signed such a contract can still ship by conference line ships but at a higher freight rate.

 

1. Conference Lines

A conferenc" is a group of shipping companies that have agreed amongst themselves to levy the same freight rates and to observe the same shipping conditions (e.g. liability for damage to the exporter's goods).

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Hazards of Export Packing & Shipping

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Such conference lines operate on all the observed regular shipping schedules, an important consideration for the exporter who needs to be able to quote reliable shipping and delivery dates.

 

2.Non-conference lines
These are individual lines that operate on the traditional shipping routes with regular sailing schedules and in competition with the conference lines.

They have their own individual freight rates - as much as 10 per cent lower than the conference ones.

Bookings are accepted from any shipper so long as space is available. No exclusive patronage contracts are required.

 

3. Tramp Lines
These are companies that do not have a fixed route or schedule of sailing.
Instead, they operate on a per voyage basis. Usually, their freight rates are extremely competitive.

 

4. National or Flag Lines
The exporter may receive a lower rate of import duty and other benefits if he uses the national shipping line of the importing country.

 

 

 
 

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5. Steamship Agent
This person is employed by a shipping company to arrange for the berthing and clearance of vessels, including Customs formalities, loading and unloading of cargo, preparation of bills of lading, the booking of shipping space, etc.

 

6. Ship Broker
Such a person acts as an intermediary between the shipping companies on the one hand and the exporters on the other.
He helps arrange "charters" or booking for tramp vessels and advises ship owner on competitive rates.

 

Ocean Freight Rates

The freight rates
Most commonly charged by the steamship lines are both
conference and non-conference is known as line terms.

Which include the cost of carrying the goods from one port to another but also the cost of loading the goods on to the ship in the port of shipment and unloading them at the foreign port.

As well as any harbor charges that the ship may incur. However, the freight rate does not include certain terminal charges that may be levied by the harbor authorities against the cargo.

Another type of freight rate that may be charged is free in and out (FIO) Here the exporter pays for the transporting of the goods as well as pay for the stevedoring  i.e., the loading and unloading of the goods which must be completed within a certain time, otherwise, penalties, called demurrage, will be levied.

With both types of freight rates, the shore-based costs of loading and unloading the cargo represent a substantial part of the ocean transportation costs. In recent times, the growing use of containers has helped reduce this cost, as well as the pilferage that sometimes takes place with traditional forms of cargo loading and unloading.

Factors that influence the rate charged
for any particular type of cargo.

1. The weight of the goods being shipped

2. The dimensions of the goods being shipped

3. The shape of the goods

4. Ease of damage

5. Ease of pilferage

6. Need for refrigeration or other special conditions

7. Direction of traffic

Freight cost are computed by the shipping company based on both weight and cubic size and charges the higher cost.

The freight charge are usually quoted at so many "$" per tone, by weight or measure, whichever is greater.

A short ton is 2,000 pounds; a long ton, 2,240 pounds; a metric ton, 2,204.68 pounds. Space measurement is usually 40 cubic feet or one cubic meter.

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