Ocean Freight: A Comprehensive Guide 2025

Ocean freight is the backbone of international trade, moving the vast majority of the world’s goods across oceans. Whether you’re a manufacturer, e-commerce seller, or supply chain manager, understanding ocean freight—and how it differs from other modes of transport—is essential to optimizing costs, transit times, and regulatory compliance.

What Is Ocean Freight, and How Does It Work?

Ocean freight, also called sea freight, is the transportation of goods internationally by sea using cargo ships and standardized containers. Roughly 90% of global trade by volume moves via ocean freight, making it the most popular option for shipping large quantities of goods across continents.

The basic ocean freight workflow involves:

• Booking space on a vessel with a carrier or through a freight forwarder.
• Packing goods into Full Container Loads (FCL) or consolidating them into Less-than-Container Loads (LCL).
• Handling export customs clearance at the origin port.
• Loading containers onto the ship at the loading port.
• Transporting containers by sea on scheduled sailing routes.
• Unloading containers at the destination port and completing import customs clearance.
• Arranging inland delivery from port to the final consignee.

Key Steps in the Ocean Freight Process

1. Request Quotes and Negotiate Terms
   • Compare carriers and freight forwarders.
   • Define Incoterms to clarify cost and risk responsibilities.
2. Book Cargo Space
   • Select FCL if you can fill a container.
   • Choose LCL if you have smaller volumes and want to share container space.
3. Container Packing and Documentation
   • Prepare the commercial invoice, packing list, and Bill of Lading.
   • Obtain any required export licenses and certificates of origin.
4. Customs Clearance (Export & Import)
   • Submit export declarations at the origin.
   • Pay duties, VAT, and handling fees upon arrival at the destination.
5. Loading, Transit, and Unloading
   • Containers are stowed on vessels according to weight and stability plans.
   • Ships follow fixed schedules—typically 15–25 days from major Chinese ports to the US West Coast.
   • Upon arrival, containers are unloaded and moved to the import terminal.
6. Final Delivery
   • Arrange trucking or rail from the port to the consignee’s warehouse.
   • Return empty containers within the allowed free time to avoid detention charges.

you may also want to read: How Do International Sea Freight Services Work?

Air vs. Sea Freight: Which Shipping Agent Should You Pick for China-France

Difference Between Air Freight and Ocean Freight

Both air and ocean freight serve vital roles in global logistics, but they cater to different needs:

• Speed
  • Air freight: 1–7 days transit.
  • Ocean freight: 20–45 days transit.
• Cost
  • Air freight: Significantly higher, best for high-value or perishable goods.
  • Ocean freight: More cost-effective for large, heavy shipments.
• Capacity
  • Air freight: Weight and size limits; volumetric pricing applies.
  • Ocean freight: Vast container capacity; ideal for bulk cargo.
• Reliability & Frequency
  • Air freight: Frequent departures, precise schedules, lower risk of delay.
  • Ocean freight: Fewer sailings; subject to port congestion, weather, and canal transits.
• Environmental Impact
  • Air freight: Higher carbon footprint per ton-mile.
  • Ocean freight: Lower emissions, making it the greener option for non-time-sensitive cargo.

Why Ocean Freight Forwarding Services Are Important

Ocean freight forwarding services have become indispensable for businesses engaging in international trade:

• Global Connectivity Ocean freight handles about 80% of the world’s cargo volume, linking suppliers and buyers across continents.
• Cost Reduction Forwarders negotiate long-term contracts with carriers, ports, and trucking companies, securing preferential rates and consolidating shipments to lower per-unit costs.
• Cargo Safety & Compliance Navigating multiple jurisdictions’ regulations can be complex. Forwarders ensure all customs, documentation, and insurance requirements are met to avoid penalties and delays.
• Risk Mitigation Established forwarders maintain insurance coverage, track shipments in real time, and provide contingency planning for disruptions such as port strikes or extreme weather.
• Operational Efficiency By handling booking, documentation, and multimodal coordination, freight forwarders free up your internal resources to focus on core business activities.

What Does an Ocean Freight Forwarder Do?

An ocean freight forwarder is your logistics partner, acting as the intermediary between shippers and carriers. Core functions include:

• Coordinating all legs of the shipment from door-to-door.
• Booking space with ocean carriers and selecting optimal routes.
• Preparing and reviewing shipping documentation (Bills of Lading, certificates, export/import declarations).
• Handling customs clearance, duties, and taxes for both export and import.
• Consolidating LCL shipments and deconsolidating at destination.
• Tracking cargo movements and providing status updates to clients.
• Advising on Incoterms, insurance, and risk management strategies.
• Arranging inland transport, warehousing, and final delivery logistics.

How to Ship from China to the USA by Sea

Shipping from China to the USA follows the general ocean freight process, with some regional specifics:

1. Select Reliable Freight Forwarder
   • Ensure they have strong carrier relationships for lanes between China and US ports.
2. Choose the Right Port Pair and Route
   • Top lanes include Shanghai→Los Angeles, Shenzhen→Los Angeles, and Shanghai→New York.
3. Decide FCL vs LCL
   • FCL rates typically run $1,200–$2,500 for a 20′ container and $2,500–$4,000 for a 40′ container.
   • LCL charges are based on volume, around $150–$350/m³.
4. Prepare Documentation
   • Commercial invoice, packing list, Bill of Lading, and any specialized certificates (e.g., FCC for electronics).
5. Customs Clearance in China
   • Submit export declarations and arrange for pre-carriage to the Chinese port.
6. Ocean Transit to US Port
   • Expect 15–25 days to West Coast; 25–40 days to East Coast via Panama Canal.
7. US Import Clearance & Delivery
   • Pay customs duties (5–20% of CIF value), Merchandise Processing Fee (MPF), and Harbor Maintenance Fee (HMF).
   • Book drayage to final warehouse and manage container return.

Latest Trends and Data

The global container fleet is expanding rapidly. Industry forecasts project fleet growth of 6.3% this year, rising to 8.1% in 2024—driven by demand for larger vessels and ultra-large container ships to achieve greater economies of scale.

Ocean Freight Q&A