Ocean Freight

Ocean freight refers to the transportation of goods by sea, typically using large cargo ships known as container ships. It is a crucial component of international trade and logistics, facilitating the movement of a wide range of products and commodities across the world's oceans.

Here are the overall breakdown of ocean freight.

1. Transportation: The primary component of ocean freight covers the actual movement of goods from the port of origin to the port of destination.

2. Port Charges: Fees charged by the ports for services such as loading and unloading cargo, terminal handling, and berth usage.

3. Container Use: The cost associated with using shipping containers, which may vary depending on the type and size of the container (e.g., 20-foot, 40-foot containers).

4. Bunker Adjustment Factor (BAF): This is a charge to account for fluctuations in fuel prices. BAF is based on the price of bunker fuel and is adjusted periodically.

5. Documentation: Costs related to documentation, including bills of lading, customs paperwork, and other relevant documentation required for international shipping.

6. Insurance: While basic coverage might be included, additional insurance for the shipment may incur extra costs. Shippers often have the option to purchase marine cargo insurance to protect against potential loss or damage during transit.

7. Surcharges: Various surcharges may apply, depending on factors such as the type of cargo, destination, or specific services required. Examples include currency adjustment factor (CAF), peak season surcharges, or congestion charges.

8. Equipment Handling: Charges for specialized equipment or services, such as refrigerated containers (reefers) for temperature-sensitive goods or oversized cargo handling.

9. Security and Compliance: Fees related to security measures, customs compliance, or regulatory requirements imposed by international conventions or local authorities.

10. Additional Services: Optional services like cargo tracking, warehousing, or inland transportation (from the port to the final destination) may also be available at additional costs.