Shipping essentially refers to the transportation of merchandise from one place to another. There are several modes through which shipping is done, like air, water, land, etc. Among these, shipping through water bodies like the sea or oceans is known as sea freight.
Trading or transportation of merchandise from one corner of the world has been done through the seas and oceans for many centuries. However, as times have changed, the traditional ways of doing sea transportation have also changed. Today, the sea freight shipping industry has expanded manifold and is the most popular mode of shipping.
Ocean freight shipping
Ocean freight logistics is the first choice for retailers when importing or exporting goods internationally. It is the process by which cargo is transported globally on large cargo ships. The goods are loaded into the containers, which are 20–40 feet high and placed inside the container ship.
Generally, a standard cargo ship can accommodate around 20,000 containers at a time. This mode of transportation can carry large volumes of merchandise at a time, making the whole shipping process economical for the retailer. Additionally, it also has fewer restrictions when it comes to the nature of goods one can transport across the world.
Factors affecting cost
Maritime logistics is one of the most critical industries, and it deals with almost 80–90% of international imports and exports. Globalization has led to a further rise in demand and services in the freight shipping industry.
The prices of sea freight shipping have gone down considerably in the past few years, but it continues to be the number one option for shipping among retailers. Here are some factors that affect the cost of sea freight shipping.
Demand and supply
The demand for the services by retailers and the ability of the sea freight shipping companies in the industry to cater to the demands play a significant role in determining the prices of the services. Demand and supply are affected by several situations, especially during holidays like Christmas. The demand for such services is very high for people and businesses worldwide during this time. Still, supply might decrease, especially in countries where Christmas is celebrated on a large scale, as people are mostly on holidays with their families.
Rate of fuel
The fuel cost also plays a vital role in determining the rates of sea freight shipping—the cost of every other reasonable and necessary resource increases as the inflation rate increases. As ships transport goods worldwide, they require a considerable amount of fuel. If fuel prices increase, it will also reflect on service rates. In the past few years, even though the prices of fuel have gone up, the prices of sea freight shipping are considerably low.
Exchange rates
The rate of currency exchange is another factor that affects the cost of ocean freight shipping. The base rate of the country from which the shipping services are available is drastically affected by any minor changes in the exchange rate of currencies. No matter how small the change in rate might be, it can affect the sea freight industry drastically, as a typical voyage takes a long time.
Number of ports and international policies
To deliver the goods, the ships need to stop at ports that are built along the sea. The cost of sea freight shipping is also affected by the number of ports the ship needs to stop at. The more stoppages a ship needs to make at different ports, the more the rate of shipping increases. One also needs to be mindful of international policies. The more the borders open, the cheaper it will be.
Final Words
Therefore, sea freight shipping is one of the most economical and efficient modes of transportation when it comes to the transportation of cargo over a long distance. It can carry a large amount of cargo. The sea freight shipping industry has expanded over the years, which has led to the establishment of many shipping companies. Vocean is a Gandhidham shipping company that is the best among other sea shipping companies. Here, you will find all the services that a retailer might need, including CHA in Gandhidham. Reach out to us anytime!
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