The computer monitor in front of you or the smartphone in your hand was most likely made overseas or with parts from another country. The likelihood is that they were transported on a container ship. Over 90% of the world's goods pass through its oceans. With so much commerce moving by sea, one has to wonder how it all works.
Welcome to Ocean Freight 101, where we will explain sea freight in layman's terms. You will discover how intermodal transportation transformed how goods moved across the world's oceans and how major ports operate. You will learn about the parties involved in an ocean freight shipment and what documents are required, and you will see that it is not that difficult.

Without sea freight, the world's economy would grind to a halt: there would be no electronic products, no raw materials for manufacturers, and store shelves would be half empty. Despite the fact that we live in a digital age, it is the massive flow of goods crossing our oceans that keeps global commerce humming. We begin by delving into the definition of ocean freight.

What Exactly Is Ocean Freight?
Simply put, ocean freight is the transportation of goods, raw materials, and commodities through the world's oceans and waterways. The vast majority of everything sold anywhere in the world was most likely transported by ship, at least in part.

Container Shipping: The Heart of Sea Freight
In 1956, a converted World War II tanker was outfitted with a reinforced deck and used to transport 58 large metal boxes, each containing various types of goods, as part of a holistic logistics concept aimed at lowering freight costs. This historic maiden voyage from Newark to Houston gave birth to the concept of container shipping and, more importantly, intermodal transportation, which is at the heart of ocean freight systems worldwide.

If you drive at all, you've probably seen them on your local highways: big rigs and 18-wheelers transporting massive rectangular boxes with large, hinged doors in the back. These are referred to as shipping containers, and they are what allow intermodal transportation to function. Shipping containers are universal, which means they are the same size all around the world.

Shipmates
First-time ocean cargo shippers may be daunted by the process. These fears are unwarranted. First, identify the parties and their rights and responsibilities. From there, do your homework and consult professionals.

Transporter
This party, usually the seller, is responsible for:



Preparing all paperwork for the goods, including packing lists and commercial invoices
Pack the shipment
Make pickup arrangements with a freight forwarder.


Recipient
This is the person or company named on the shipping documents as the recipient. Usually, the buyer is the consignee, but sometimes a bank or financing institution holds title until the buyer pays in full.

Shipping documents may also name a notify party, usually a freight forwarder or consignee agent. Often, the notify party is local to the consignee and helps clear customs and deliver the goods.

Transporter
The shipper's shipping line or company. Multibillion dollar conglomerates own many of the world's largest carriers.

Forwarder, Agent
The freight forwarder is the third most important party in an ocean shipment. The freight forwarder schedules a truck to pick up the shipper's cargo, books space on a container, and schedules the container's departure on a specific vessel. Freight forwarder gives carrier shipping documents.

Freight forwarders often have a satellite office in the destination country or work with a local agent to facilitate delivery of goods after arrival.

Each country's customs office regulates which goods can enter. Before shipping, make sure the products meet local requirements and can clear customs. Your freight forwarder should clarify customs issues and provide estimated costs for duties, taxes, and tariffs.

Product
Freight forwarders will ask what you're shipping and in what quantities. As for the goods, you must know if you can ship them out of the country (firearms and advanced technology are restricted) and if they can enter the destination country.

Governments sometimes impose tariffs or ban certain goods. Your freight forwarder can help you determine if your shipment will have any issues. Customs and Border Protection and the International Trade Commission also have resources.

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