Ocean Freight Forward

Ocean Freight Forward

Ocean freight, also known as maritime transport, plays a crucial role in the world of logistics, especially in Vietnam. Despite the challenges posed by the COVID-19 pandemic, ocean freight has remained a stable and even growing industry since the end of 2021. In 2022, Vietnam’s seaports handled a total volume of 733.18 million tons of goods, marking a 4% increase from the previous year. But why is ocean shipping so important, and why do many businesses prefer this mode of transportation? Let’s explore the answers to these questions.

1. The definition of ocean freight service:

❖➤ Ocean freight service includes the infrastructure, vessels, and processes involved in transporting goods via sea routes. It applies to both domestic and international shipments. Typically, ocean shipping is favored for goods with large volumes, making it preferable choice across various industries.

2. Advantages of ocean freight service:

❖➤ There are several advantages that the ocean freight service can offer for :

• Capacity for bulky goods: Ocean vessels have substantial tonnage capacity, making them the preferred choice for transporting oversized and heavyweight cargo.

• Modern seaport infrastructure: Seaports are equipped with modern facilities for efficient loading, unloading, and container handling.

• Cost-effective: Long-haul sea transport is cost-effective, making it a practical choice for goods with lower value compared to air freight.

• Lessened risks: Ocean routes encounter fewer obstacles such as traffic congestion or landslides, which are common issues in road transportation.

• Utilizing natural resources: Ocean shipping takes advantage of natural waterways, reducing the need for extensive infrastructure investments like rail systems.

• Promoting trade: Sea routes serve as economic bridges, strengthening the partnership of international cooperation and trade between countries.

• Cost Savings and Safety: Businesses can save on transportation costs while ensuring the safety of their goods during ocean shipping.

3. Permitted items in ocean shipping service:

❖➤ Various items are suitable for ocean shipping, including:

• Bulky goods: Large, cumbersome items find a practical transportation solution in ocean freight.

• Dry goods, canned goods, canvas shoes, toys: Items that require ample space but not necessarily speedy delivery are ideal for sea transport.

• Minerals, metal products, wood: Items with substantial quantities and moderate value benefit from the cost-effectiveness of ocean shipping.

• Perishable or specialized items: For products like frozen goods with substantial loads, ocean transport is often the most feasible choice, as airfreight may not be suitable.

4. The fee and surchages of ocean freight forward:

❖➤ THC (Terminal Handling Charge): A fee per container for port cargo handling, regulated by the port and paid by shippers/consignees.

❖➤ AMS (Automated Manifest System) Fee: Covers customs declaration when importing into the US, set by the shipping company and paid by exporters. The similar fees for export to other countries: Include ENS - Entry Summary Declaration (EU), AFR - Japan Advance Filing Rules (Japan), AMR - Advance Manifest Rule (China), and ANB (Asia) fees.

❖➤ D/O Fee (Delivery Order Fee): Paid by consignees to shipping lines/forwarders when getting delivery orders for imported shipments.

❖➤ B/L Fee (Bill of Lading Fee) and AWB Fee (Airway Bill Fee): Collected for issuing shipping documents.

❖➤ CFS (Container Freight Station Fee): Charged by forwarders to exporters for goods in warehouse awaiting container loading/unloading.

❖➤ Handling Fee: Levied by shipping lines/forwarders for tasks like manifest declaration and B/L registration.

❖➤ DEM (Demurrage Charge): For storing containers at the yard beyond free time (usually 5 days), payable by goods owners to shipping lines, then to the port.

❖➤ DET (Detention Charge): Charged because of storing containers at the warehouse, also with a free storage period.

Note: Free periods for DEM and DET include holidays and weekends. Refrigerated container DEM/DET fees are usually higher. Extensions can be negotiated, but delays are costly due to issues like document errors and slow processes.

5. The process of importing goods by sea:

❖➤ Schedule train: After signing a foreign trade contract, the enterprise arranges a train schedule and informs the shipping unit.

❖➤ Check booking: Verify booking slip information, including departure and destination ports, temperature, ventilation, container type, and size.

❖➤ Pack goods and update information: Continuously update order details for import agents, aiding tracking of packing progress.

❖➤ Check documents: Verify document accuracy to prevent customs delays, which can affect goods’ nature and delivery speed.

❖➤ Receive arrival notification: Consignees receive an Arrival notice detailing exporter-importer names, container info, ship details, and local charges.

❖➤ Receive delivery order (d/o): Prepare required documents, including introduction letter, original B/L, and power of attorney if necessary, to receive goods.

❖➤ Register certificates: Register certificates for special items, such as those under health or agricultural authority oversight.

❖➤ Customs declaration: Prepare customs declaration documents and fulfill tax obligations. Pay fees and charges at the port’s sales office after customs clearance.

❖➤ Warehouse goods and return containers: Inspect goods, container condition, and seals when moving to the warehouse. Clean and return containers to the port or ICD.

❖➤ Maintain records: Carefully store documents and records related to the import process for reference in case there are issues or complaints.

6. Sea freight services are provided at Expander Logistics:

❖➤ With more than 10 years of experience in the field of sea transport forwarding, Expander Logistics company are able to be in charge of international transportation and we can always support customers in preparing import and export procedures. Moreover, we also possess these characteristics:

• Expander is currently an associate partner with major shipping lines in the world such as: MARSK, ONE, CMA-CGM, YANG MING, NAMSUNG, WANHA, etc., in order to provide customers with optimal transportation solutions in terms of efficiency costs.

• Professional service, commitment to not charge additional costs, fast shipping time, ensure delivery time as committed to customers.

• Expander Logistics strives to find solutions to shorten transportation time and ensure absolute safety of goods.

• Providing sea transport services combined with customs clearance.

• With services provided at Expander Logistics include: FCL and LCL Door to Door Delivery Customs service for import and export shipments by sea

Expander Logistics is always willing to consult, support and answer questions for customers free of charge about the provisions of the Law for sea transportation, how to carry out the most accurate procedures for importing goods by sea. If you want to find out more information related to sea transport or any of our services, please contact the hotline or website address below:

Tel/Zalo: +84 967013690

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Website: https://www.expanderlogistics.vn/