8 tips for shipping your goods by ship
The shipping industry is complex and fragmented, making it difficult for shippers to identify the right carrier, service and price. Ocean freight remains one of the most cost-effective ways to move large volumes of goods over long distances. It is also a great option if you want to transport bulky or heavy items that would not be cost-effective if shipped by air.
It can be difficult to navigate the world of shipping as an individual business owner. Shipping is a highly specialised field with terminology that can sometimes seem like another language.
There are many different variables and factors to consider when planning a shipment using any type of vessel, from size and tonnage to refrigerated spaces and handling facilities. Fortunately, we have some tips from experienced shippers to help you get started on your shipping journey.
Know the shipping conditions
All shipping contracts have specific conditions governing their terms, such as the type of vessel, the route the vessel will follow, transit time, payment terms, etc. Knowing what kind of shipping conditions are required for your goods is the first step in finding the right shipping partner for your shipment.
For example, if your goods are perishable, you may want to select a containerised shipping option, such as a refrigerated sea container, to ensure that your goods reach their destination as quickly as possible. If your shipment is particularly large or heavy, you may want to look for a shipping partner with specialised equipment and deep-water ports suitable for larger vessels.
Request a quote
As with any other business transaction, it is important to get an idea of what the total cost of the shipment will be before signing the contract. Although you do not have to accept the exact figures provided by the shipping company, it is important that you request a quotation so that you have a general idea of the total cost of shipping your goods. This will also help you identify any unexpected additional costs and make it easier for you to negotiate the final price.
It is best to request at least three quotes from different shipping companies to make sure you have a general idea of the range of costs companies charge for shipping your goods by sea.
You can also request a rate indication (not a firm quotation) from other carriers if you are still looking for a shipping partner even after having received quotations from a few companies. These indications are not binding, so you are not committed to accept the quoted rates.
Calculation of transport costs
Once you have identified the type of vessel you wish to use for your shipment and have received a few quotes on the cost of shipping your goods, you will need to calculate the transport costs of your shipment based on the information provided by the shipping lines.
This can be a bit complicated, as there are several factors that affect the final shipping costs. However, there are a few things you can take into account to calculate shipping costs more accurately.
- - You will have to pay demurrage charges if your goods are transported on a ship anchored in a port. Therefore, it is best if your shipment ends up in an east or west coast port so that it can be unloaded as soon as possible.
- - If you are transporting perishable or temperature-sensitive goods, you should ensure that they are transported in a refrigerated vessel where they can be kept at the right temperature. You can also check whether you are eligible for a reduction in transport costs due to the perishable nature of your goods.
- - If your cargo is large in volume, you may be able to negotiate a reduced rate, as the shipping company will have to carry more cargo on the vessel.
Finding the right carrier
There are many shipping companies offering ocean freight services, so it can be difficult to find the one that best suits your shipment. It is a good idea to create a list of companies that you think are a good fit for your shipment and then visit their websites to learn more about their services.
After visiting their websites, you should call some companies to find out about their services and the rates they charge for shipping your goods. You can find the contact details of many shipping companies in various online freight forums or through online directories such as the Shipping Directory.
When contacting the different shipping companies, you should ask them for the following details in order to be able to compare the services and fares of the different companies:
- The type of vessel (e.g. general cargo ship, container ship, reefer ship, etc.) to be used for the shipment.
- The name of the port where the vessel will start its voyage.
- The name of the port where the vessel will terminate its voyage.
- The transit time of the shipment.
- The terms of payment.
Book early - don't wait until the last minute!
If you are shipping your goods by sea and need to book a ship, you should start looking for a shipping partner as early as possible. It is best to book your shipment at least three months in advance, or even earlier if you have perishable or temperature-sensitive goods that need to be shipped on a refrigerated vessel.
You can book your shipment further in advance if you are willing to pay higher rates due to the high demand for shipments during peak seasons. If you book a vessel in low season, you can negotiate a lower rate.
Mark your items as "dangerous goods" and check the requirements for shipment of goods by ship.
If your goods are considered "dangerous goods", you will need to inform the shipping company about this and provide the necessary details and documents. You can also check whether your goods can be shipped by sea by visiting the International Maritime Organisation website.