Ocean freight refers to the transport of large quantities of products via ocean vessels. Over 80% of global trade transits via sea. The start of cargo shipping from exporting ports receiving marks the beginning of ocean freight transportation. Then for vessel loading, on ocean transit and receiving at a port in Canada.
Ocean freight is in increments of 20-foot containers, known as twenty-foot equivalent units (TEUs). Standard containers are typically twenty- or 40-foot in length.
In addition to these, tank containers serve the need of bulk commodities like petroleum and coal.
Generally, air shipping is for parcel shipping, high value products and high value commodities.
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For small, light, or high value products, many importers choose to ship by air, as ocean freight is not the only transportation option. More expensive, but faster and more secure, air cargo is the preferential choice. Also, it's important to note that regulations for air cargo are stricter versus those for ocean freight.
Versus sea transport, air transport can be over 10 times more expensive. But this differential really only applies for pallet shipments over 500 to 1,000 kilograms.
Time, money, shipping... and logistics. Consider economy air freight in conjuction with ocean services. Maximize ocean freight which can bee too slow. And minimize air freight which can be too costly. Find a greater balance between road freight networks, air and ocean transportation options.
Ocean freight transportation time varies on the location and destination of your goods. In general, allow for between 1 to 3 months.
A rough estimate for end-to-end shipping from Southwest Asia to Canada is usually within 2 months. The "on the ocean time" is usually less than 20 days. The total transit includes waiting time at the origin port, arrival port, inland warehousing, and inland transit.
Most delays for ocean freight do not occur on the ocean. The congestion at ports results in slower sailing speeds for ocean lines. This is done to minimize waiting time at the port.
Generally speaking, the only option for shipping single packages via ocean is via the post office. This is especially true of overseas shipments. Low cost surface (i.e. ground) option is more readily available between Canada and the USA.
The best way to lower total shipping costs is to place an order large enough to ship via ocean. The cost to ship 2 pallets via air, for example, may be not much more than shipping 10 pallets via ocean. Of course, there are lot of other variables to consider. Sometimes, timely airfreight can be a better solutions despite the cost.
The term "surface" refers to shipments not sent via air. Surface options include truck, rail, ocean. Surface shipments between Canada and USA refer mostly to ground courier, less than truck loads and full truck load.
Ocean shipping is not cost effective for smaller shipments. The myriad of additional fees and minimum charges are especially significant for small cargo. For packages, the best option is local post "surface" options.
Local Post surface options are available to most international destinations for shipments less than 30 kilograms. Some destinations have a lower weight limit.
General guidelines for lowest cost shipping options:
Bulky shipments are often cheaper via ocean even for lower weights. Air freight shipments more stringent volume weight calculation. Read more about chargeable weight.
Size, expense, and speed are the three factors that typically determine when ocean is best, although nearly anything can ship using this method.
There are fewer restrictions versus air freight. Ocean liners have different policies regarding what they will and will not accept, including extreme oversize shipments and some dangerous goods.
CO2 freight emissions from ocean freight are a fraction of equivalent air freight. According to research, 2 tonnes transporting 5,000 kilometres via ocean results in less than 200 kg of CO2 emissions. In contrast, the same shipment via air generates over 6,000 kg of CO2 emissions.
No surprise that the biggest downside of ocean shipping is transit times. Slow port handling, customs and all ocean processes are slower than air. De-consolidation for less than container loads result in significantly longer transit times.
Ocean shipping is a competitive low margin business. Some carriers and forwarders profits come solely from additional fees, surcharges and other non-core costs.
All commercial importers must register in CBSA's CARM system. Doing so requires importers to assign a customs broker and submit a surety bond (or deposit) to guarantee payment of duty and taxes. How to register for CARM.
The charges for ocean freight can vary depending on various factors. Some common charges with ocean freight may include:
The specific charges and amounts will vary depending on the shipping line, freight forwarder, and the terms of the contract or agreement.
With respect to storage fees, confirm the necessary approvals and entry information prior to shipping. The most common reason storage fees is delays in customs clearance.
When you choose ocean shipping, you’ll likely come across LCL and FCL freight. The two main options when shipping cargo across the ocean are as follows:
LCL stands for Less than Container Load. Using this option, your goods will share a shipping container's capacity with others. LCL freight is a great shipping option if you need to transport smaller volumes of cargo. A "smaller ocean volume" can be very costly air freight option.
FCL stands for Full Container Load. This is a good option if you have enough cargo to fill all or most of entire shipping container. The size of the shipping container will also determine the best option. For instance, you may have the capacity to fill a 20-foot shipping container but not a 40-foot one. Shipping a full container (FCL sea freight) is always preferable whenever possible.
When choosing between FCL and LCL sea freight, there are some key considerations to keep in mind.
You shouldn’t just choose LCL or FCL freight on the cost or size of your shipment. When deciding, here are some important considerations you should remember.
Countering the additional cost of multiple bill of ladings are the lowering of other costs. LCL can reduce the cost of additional warehousing, unloading, and sorting. Organize your cargo into containers for specific cities and regions. By not having to do this at the first port saves time and money.
FCL freight doesn't always cost more, as LCL freight charges per cubic meter (CBM). It might be better to pay for an entire shipping container, depending on the the cost per CBM.
FCL Shipping is a popular choice for businesses looking to transport large quantities of goods.
Jet Worldwide's FCL (full container load) shipping services cater to the transport of large bulk cargo. Our team helps businesses with their FCL shipping requirements by offering fast feedback, quotes and direct access to one of our team members.
Our Ocean Freight Shipping Service provides reliable and efficient shipping solutions.
We provide quotes for LCL shipments to enable businesses to compare rates. Select the most suitable option according to their needs. Our conversational approach communicates beyond a technology “click and ship” solution. We help importers and exporters comply with all necessary regulations. And, we freely recommend alternatives that may be better meet your needs.
The specific routes depend on weather conditions, shipping schedules, and other considerations. Here are some general guidelines.
Cargo from Europe traditionally transit from Rotterdam (Netherlands), Hamburg (Germany), and Antwerp (Belgium). They most commonly transport to Halifax (Nova Scotia) or Montreal (Quebec).
Some cargo from Europe ship first to the Port of New York/New Jersey (United States). From there, they transit in bond to Canada.
Cargo from Southern Europe commonly transport from Barcelona (Spain), Genoa (Italy), or Marseille (France) to Canada.
Northern European cargo also can transport from Rotterdam, Hamburg, or Bremerhaven (Germany) to Canada's west coast port of Vancouver.
Scandinavian cargo commonly export from Copenhagen (Denmark, Gothenburg (Sweden), and Oslo (Norway).
The transit times vary but average between 20 to 25 days. We advise planning for a door to door transit between 1 to 2 months.
Asian cargo transports pretty much straight across the pacific to western Canadian ports. Most commonly the transit is through theStrait of Georgia to the Port of Vancouver.
Transit from Asia to Eastern Canada can route north through the arctic route or south commonly via the Panama canal.
The transit times average between around 20 days to Western Canada and 30 days to Eastern Canada. Plan on a door to door transit of around 1 to 2 months.
Cargo from South America commonly between Canada, Santos, Rio de Janeiro (Brazil), Buenos Aires (Argentina) Valparaíso (Chile) or Callao (Peru). Caribbean and other south bound cargo often transits via the port of Miami.
Transit times between South America and Canada vary but average around 30 days. Allow for between 1 to 2 months for door to door transit. Factors affecting transit time include the ports of departure and arrival as the type of cargo.
Canada has several major ports, each playing a significant role in the country's international trade. Here's an overview of some of the key ports in Canada, their capacities and specialties:
These ports collectively contribute to Canada's role in international trade. Each provides unique access and specialties. In some cases, ocean cargo tranships via major ports in the USA. This includes New York/ New Jersey, California and Miami.
Virtually all shippers access ocean vessels and shipping via a freight forwarder. Read more: Useful information about freight forwarders.
Read more: Important things to know about shipping terms.
There are three main elements of a shipments value. The cost of the goods, plus insurance and shipping. Read more: Confirming CIF and correct value for import
It is useful to become familiar with the common terms for sea freight shipments. This is in addition to discussion o the other concepts. See above.
A document issuance via the carrier. This is a legal document acknowledging receipt of the cargo and shipping terms. There are two main types: straight and negotiable (can be transfer to others). Understanding a bill of lading.
The placing of goods in standard ocean containers for transportation. This terms applies most often to less than container shipments.
Where containers load, unload, and transfer between different modes of transportation.
A company that coordinates the movement of goods across various modes of shipping. Useful information regarding Canadian freight forwarders.
The port where goods load onto a vessel for export.
The port where goods unload from a vessel. Usually the port of entry for import.
Storages Charges that apply when storage time exceeds what is in the shipping contract.
Charges that incur when the container is kept outside the port for an longer time after unloading.
Typically a short distance transport to transfer ocean cargo between ports and warehouses. This requires coordination and approvals with local port authorities.
Refers mostly to cars and trucks that are drivable on an off a vessel.
Have your orders in Canada consolidate from different suppliers for international shipping via sea freight. Contact our team for a consultation.
Jet has solutions to receive Amazon removal orders and other returns for forwarding via ocean freight. Minimum volumes are necessary. Read more: Managing Cross Border Canadian Amazon Removal Orders.