Ocean Freight
Definition
Ocean freight is the transport of goods by sea, typically in standardized containers aboard container ships. It is the dominant mode for international trade, offering the lowest cost per unit at the price of long transit times.
In Practice
Ocean shipping runs on scheduled liner services: vessels rotate through fixed port strings on weekly schedules, and shippers book space as full container loads (FCL) or share containers as less-than-container loads (LCL). Rates are quoted per container by lane, plus surcharges for fuel, peak season, and terminal handling.
For planners, ocean freight sets the rhythm of import supply chains. Port-to-port transits of two to six weeks, plus origin and destination handling, mean orders are placed against forecasts made months out, and a missed weekly sailing slips delivery by seven days. Reliability matters as much as price: schedule slippage, port congestion, and rolled bookings all feed directly into safety stock needs.
As an example, a retailer importing from Shenzhen to Rotterdam plans on roughly 30 days on the water plus a week at each end, booking two weeks ahead to secure space in peak season.
Related Calculators
Related Terms
Air freight is the transport of cargo by aircraft, either in dedicated freighters or in the belly holds of passenger planes. It is the fastest long-distance mode and also the most expensive, priced per kilogram of chargeable weight.
TEU (Twenty-Foot Equivalent Unit)A TEU is the standard unit of container capacity, equal to one twenty-foot shipping container. A forty-foot container (FEU) counts as two TEU, and the measure is used to size vessels, ports, and trade volumes.
Freight ForwarderA freight forwarder is an intermediary that arranges international shipments on behalf of shippers, booking space with ocean and air carriers, preparing documentation, and coordinating handoffs along the route. Forwarders do not usually operate the ships or planes themselves.
DemurrageDemurrage is a charge assessed when a container stays at a port or rail terminal beyond its allotted free time before being picked up. It is billed per container per day and escalates the longer the box sits.