Ocean Freight

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📖 Detailed Explanation

Ocean Freight refers to the transportation costs incurred for moving goods from the port of loading to the port of destination via sea shipment, and it is a core component of international logistics costs. In terms of application scenarios, it is commonly used in quoting, booking, and cost settlement under trade terms such as FOB, CIF, and CFR. Precautions: Ocean freight usually does not include local charges at the port of loading and port of destination, such as THC, document fees, and customs clearance fees, and it must be distinguished from an "ALL IN price"; freight rates fluctuate greatly due to fuel, peak season, shipping routes, and container types, so the validity period must be stated when quoting; full container load (FCL) and less than container load (LCL) are charged differently, with the former using a flat rate by container type and the latter being charged by volume or weight. Compared with "air freight," ocean freight is lower but has longer transit times; compared with "shipping surcharges" such as BAF, CAF, and PSS, these must be listed separately to avoid confusion. Foreign trade practitioners should clearly specify in the contract the party bearing the ocean freight and the breakdown of costs to prevent disputes arising from surcharges.

📝 Examples

1. Please quote the ocean freight for a 40-foot high cube container from Shanghai to Los Angeles, including BAF and PSS, valid until the end of this month. (Note: When requesting a quote, specify that surcharges must be included and the validity period must be clearly stated to avoid the risk of subsequent price increases.) 2. This shipment is under FOB terms, and the ocean freight is borne by the buyer. We are only responsible for the local charges at the port of origin. (Note: Clarify the party responsible for ocean freight under the trade term and distinguish between the seller's and buyer's responsibilities.)

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