The source article states that 90% of goods transported worldwide move by sea. The term Ocean Freight has therefore become increasingly familiar. It is often used to refer to ocean freight charges. This article draws a distinction between the transport service and its price, explaining the terminology and why the distinction matters in trade discussions.
What does Ocean Freight mean?
Ocean Freight, often abbreviated O/F and also called Sea Freight, refers here to maritime transportation. Vessels, cranes, seaports, and transshipment infrastructure support the movement of goods between ports and countries.
It covers both international ocean freightand domestic sea freight between coastal areas with ports where vessels can call. Because of its large carrying capacity, Ocean Freight is widely used for high-volume import and export shipments.
Distinguishing ocean freight services from charges
The source article argues that using “Ocean Freight” solely to mean the transport price can cause confusion in international discussions. It distinguishes the maritime transport service from the charge for that service.
To make your meaning clear when discussing prices with buyers or international carriers, specify “Ocean Freight Charge.” This identifies the transport amount quoted to the customer for using the service.
The shipper or consignee pays the carrier according to the transport agreement. The article describes arrangements involving full or partial prepayment and settlement after delivery. It also notes that the parties can agree on payment by the consignee after receipt, including where the sale uses FOB terms.
Why use ocean freight in Vietnam?
Ocean freight is an important option for importers and exporters and remains a preferred mode for many businesses.
Safe transportation at a lower cost
The article highlights several advantages:
- Capacity for large, heavy shipments.
- Freight rates significantly below those of other modes, including road and air, in the circumstances discussed.
- Fewer constraints from road routes and road traffic limitations.
- A high level of safety, with fewer collisions between vessels as described in the source.
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Suitable for a wide range of goods
Where air transport restricts certain products or is impractical, sea transport may offer an alternative. Options include FCL, LCL, refrigerated containers, bulk cargo, and petroleum shipments. Businesses whose goods cannot travel by air or road can therefore consider Ocean Freight. Although transit takes longer, Ocean Freight can offer lower rates and more straightforward arrangements.
Making use of maritime resources and infrastructure
Vietnam has substantial maritime resources. The source describes the East Sea area and islands in a regional maritime space of approximately 3.5 million km², remaining ice-free throughout the year. It also highlights important international sea connections:
- Through the Strait of Malacca to the Indian Ocean and ports in the Middle East, Europe, and Africa.
- Through the Bashi Channel to the Pacific and ports serving Japan, Russia, South America, and North America.
- Connections to the Philippines, Indonesia, Singapore, Australia, New Zealand, and other destinations.
Vietnam's maritime infrastructure supports significant sea transport demand. International ports along the coast from north to south provide berthing and cargo handling facilities, helping the country develop maritime trade.
This article has explained the distinction it draws around Ocean Freight and freight pricing. In international discussions, specify whether you mean the transportation service or the ocean freight charge so the parties understand each other clearly.