Ocean Freight Guide

Your Guide to Ocean Freight Shipping and Strategy

From port to port and continent to continent, ocean freight remains the lifeblood of international trade. It’s how raw materials get to factories, how finished goods reach foreign markets, and how supply chains scale globally without breaking the bank. But while ocean freight is often the most cost-effective mode of international transport, it comes with its own layers of complexity.

Ocean Freight Is Essential, But It’s Not Easy

Despite its dominance in global trade, ocean freight isn’t as simple as loading cargo onto a ship. Port congestion, transit delays, fluctuating rates, and evolving regulations can quickly derail even well-planned shipments. Add in container shortages, limited vessel space, and geopolitical disruptions, and it becomes clear why expert coordination is essential. Businesses that treat ocean freight as a strategic function rather than just a transaction are better equipped to navigate risk, reduce costs, and stay competitive in a volatile global landscape.

In this guide, we’ll unpack the essentials of ocean freight: what it is, how it works, the different shipping options available, and what shippers need to know to make informed, strategic decisions. Whether you’re a seasoned importer or exploring global expansion for the first time, understanding ocean freight is key to unlocking reliable, scalable logistics.

What Is Ocean Freight?

Ocean freight refers to the transportation of goods via cargo ships across seas and oceans. It’s the most widely used method for moving large volumes of goods internationally, responsible for more than 80% of global trade by volume. Ocean freight shipping typically involves the use of containers, either full container load (FCL) or less-than-container load (LCL), that are transported aboard massive container vessels.

This mode of transport is favored for its cost-effectiveness, capacity, and versatility. Ocean freight can accommodate everything from electronics and apparel to chemicals, machinery, and oversized cargo. The key tradeoff is time—ocean transport takes longer than air freight, but for non-urgent or high-volume shipments, it’s often the best choice.

How Ocean Freight Works

The ocean freight shipping process involves a series of coordinated steps to move cargo from the origin point to its final destination. Here’s how a typical shipment flows:

1. Freight Booking
The shipper (or their freight forwarder) books space on a vessel operated by an ocean carrier. Booking includes selecting the type of container, service level (FCL vs. LCL), and desired sailing date.

2. Container Loading
Goods are picked up from the shipper’s warehouse or production site and loaded into containers. This step is often coordinated with drayage (short-distance trucking) to the port of origin.

3. Export Haulage & Port Handling
Once at the port, containers are weighed, screened, and passed through customs for export clearance. Port terminals manage container stacking and prepare them for loading.

4. Ocean Transport
The container is loaded onto a vessel and transported across the ocean to the destination port. This is the longest leg of the journey, with transit times ranging from 5 to 45+ days depending on the route.

5. Import Clearance
On arrival, the shipment is inspected and cleared through customs in the destination country. Required documents may include the bill of lading, commercial invoice, packing list, and certificates of origin.

6. Final Delivery (Inland Haulage)
Once cleared, containers are unloaded and delivered to their final destination by truck or rail.

Throughout this process, freight forwarders and ocean freight logistics providers help coordinate each leg, track the shipment, and resolve any delays.

Full Container Load (FCL) vs. Less-Than-Container Load (LCL)

When shipping via ocean, the two primary service options are FCL and LCL:

Full Container Load (FCL)

You pay for and use the entire container, whether or not it’s fully packed. FCL is ideal for:

• High-volume shipments
• Fragile or high-value goods that benefit from less handling
• Faster transit and reduced risk of damage or delays

Less-Than-Container Load (LCL)

You share container space with other shipments and only pay for the volume you use. LCL is a great fit for:

• Small to mid-sized shipments
• Cost efficiency when volume doesn’t justify FCL
• Flexibility for more frequent, lower-volume orders

LCL shipments involve additional steps like consolidation and deconsolidation at container freight stations (CFS), which can add handling time and cost.

Types of Ocean Freight Services

Depending on your cargo and route, different service options are available:

1. Dry Container Shipping
The standard option for general cargo, these 20- or 40-foot containers are sealed and stacked aboard container vessels.

2. Refrigerated Containers (Reefers)
Used for perishable or temperature-sensitive goods like food, pharmaceuticals, and chemicals.

3. Flat Rack and Open-Top Containers
Designed for oversized or irregularly shaped cargo that doesn’t fit into standard containers.

4. Roll-on/Roll-off (RoRo)
Used for wheeled cargo such as cars, trucks, and heavy machinery that can be driven onto the vessel.

5. Breakbulk and Project Cargo
For extremely large or heavy shipments that are loaded individually rather than in containers. Common in construction, oil & gas, and aerospace industries.

Ocean Freight Rates: What Affects the Cost

Ocean freight rates vary based on a range of factors:

• Origin and destination ports
• Service type (FCL vs. LCL)
• Container size and type
• Fuel surcharges and bunker adjustment factors (BAFs)
• Port congestion and terminal handling charges (THC)
• Peak season surcharges
• Currency fluctuations and geopolitical disruptions

Freight forwarders often quote all-inclusive rates that cover ocean transport and port handling, but inland drayage and customs fees may be charged separately. Tracking ocean freight rates over time can also reveal trends useful for budgeting and strategic planning.

Ocean Freight Tracking and Visibility

Modern ocean freight logistics rely on real-time tracking for better visibility and performance. Most carriers and freight forwarders offer tools to track:

• Container location (vessel name, port status, estimated arrival)
• Shipping milestones (booking, departure, in-transit, arrival)
• Exceptions or delays
• Ocean freight tracking systems help:
• Improve planning and inventory management
• Minimize disruptions
• Provide proactive communication with customers

Visibility platforms also integrate with TMS (transportation management systems) and ERP software, giving shippers more control and actionable data.

Benefits of Ocean Freight Shipping

Despite the longer transit times, ocean freight offers many advantages:

Cost-Effectiveness
Ocean shipping is typically the most economical option for international freight, especially for large or heavy loads.

High Capacity
Cargo ships can move vast quantities of goods in a single voyage—critical for bulk commodities or mass retail shipments.

Environmental Efficiency
Per ton-mile, ocean freight produces significantly fewer emissions than air transport. Many shippers use it to reduce their carbon footprint.

Versatility
With a range of container types and services, ocean freight accommodates almost any kind of cargo.

Challenges in Ocean Freight (and How to Solve Them)

While ocean freight is essential, it does have limitations:

1. Port Congestion and Terminal Delays
Port congestion is a persistent issue, especially during peak shipping seasons or when global events disrupt normal operations. Congested terminals result in vessel backlogs, longer dwell times, and increased demurrage or detention fees, throwing off delivery schedules and increasing costs.

Solutions:
To navigate port congestion, experienced freight forwarders maintain relationships with multiple ports and carriers, giving shippers rerouting options when terminals become bottlenecked. Planning shipments around peak congestion periods, building buffer time into transit schedules, and using inland container depots or alternate gateways can also reduce delays and costs.

2. Long Transit Times and Reliability Risks
Ocean freight, while cost-effective, is significantly slower than air freight and subject to unpredictable variables—weather, labor strikes, and global disruptions. For businesses relying on just-in-time inventory or time-sensitive cargo, these long lead times can be a liability.

Solutions:
Shippers can mitigate long transit risks by combining ocean with air or rail in multimodal strategies, allowing faster legs for more urgent cargo. Integrated visibility tools and predictive ETAs help improve planning, while nearshoring strategies or regional distribution hubs can reduce reliance on long-haul ocean freight altogether.

3. Customs Delays and Compliance Issues
Improper documentation, inaccurate declarations, or misunderstanding import/export requirements can lead to customs holds and fines. These delays are common in countries with complex or frequently changing trade regulations.

Solutions:
Working with a freight forwarder that provides integrated customs brokerage services is essential. These experts manage documentation, classify goods correctly, and maintain up-to-date knowledge of global compliance standards. Proactive document audits and customs pre-clearance services can prevent errors before they cause disruption.

4. Container and Equipment Shortages
Equipment shortages—especially container imbalances between high-export and high-import regions—can leave shippers scrambling for space. This issue was particularly acute during the pandemic, but remains a concern in volatile shipping markets.

Solutions:
To secure equipment during tight markets, shippers should forecast demand and book capacity as early as possible. Establishing consistent shipping schedules with forwarders and carriers helps increase access to available containers. Some companies also benefit from leveraging NVOCCs or 3PLs that can reposition containers across their global networks.

When to Use Ocean Freight

Ocean freight makes the most sense when:

• You’re shipping high-volume or heavy cargo
• Cost efficiency is more important than speed
• You’re working with predictable lead times
• Your cargo isn’t urgently needed or highly perishable
• You’re looking to reduce carbon emissions

Shippers often pair ocean freight with warehousing or cross-docking strategies to balance cost and delivery timelines.

Ocean Freight in Action: Common Use Cases

Ocean freight transportation is essential for global commerce, connecting supply chains across continents and supporting industries that depend on high-volume, cost-effective shipping. Here’s how various sectors leverage ocean freight to stay competitive and efficient:

Apparel
Global apparel brands rely heavily on ocean freight to transport large volumes of textiles, garments, and accessories from manufacturing hubs in Asia and Central America to retail markets in North America and Europe. Containerized shipping helps reduce costs for seasonal merchandise while allowing brands to scale distribution according to demand. Consolidation and careful cargo planning are key to managing SKUs and meeting strict launch dates.

Electronics and Consumer Technology
Manufacturers and distributors use ocean freight to move everything from smartphones and laptops to household appliances. Given the high value and sensitivity of these goods, many shipments involve high-cube or temperature-controlled containers with robust security measures. Ocean freight offers a cost-effective alternative to air, especially when shipping high-volume consumer electronics to major global markets.

Industrial and Energy
Heavy industries like oil and gas, renewable energy, and mining use ocean freight to transport turbines, pipes, drilling equipment, and other oversized cargo across oceans. Specialized breakbulk and out-of-gauge containers allow for the safe movement of irregularly shaped and high-tonnage materials. These operations often involve project cargo logistics and precise coordination between ports, freight forwarders, and inland carriers.

How to Choose an Ocean Freight Forwarder

The right ocean freight partner manages risk, understands compliance through and through, and has experience moving your type of freight.

Look for:

• A global network of carrier and port relationships to secure space and flexible routing
• Real-time tracking and visibility platforms that provide full transparency
• Deep expertise with customs clearance and local regulatory requirements
• Flexible multimodal and intermodal capabilities to simplify the full journey
• Transparent pricing structures and reliable documentation support

Ask whether the forwarder can integrate with your TMS, offer dedicated account management, and provide visibility tools that align with your KPIs.

A capable ocean freight forwarder becomes a strategic partner—helping you reduce delays, improve predictability, and optimize your global logistics network.

Navigating Global Trade with Confidence

Ocean freight remains the most cost-effective way to move goods at scale across the globe, but navigating its complexity takes more than port access and container bookings. From balancing lead times and landed costs to managing capacity swings and customs hurdles, today’s ocean freight strategy needs to be as dynamic as your supply chain.

Legacy SCS brings structure and foresight to that complexity. We help you design ocean shipping models that flex with market demand, improve throughput, and reduce unnecessary handoffs. Our direct engagement model pairs you with logistics experts who understand your network inside and out, backed by tools that bring clarity to every vessel, port, and milestone.

Get In Touch with a Legacy Expert Today

FAQs

Q: How long does ocean freight take?
A: Transit time for ocean freight varies depending on the origin and destination—ranging from a few days for regional moves to several weeks for intercontinental shipping. Additional time may be required for customs clearance, port congestion, and container handling. Working with an experienced freight forwarder can help reduce unnecessary delays and improve timeline accuracy.

Q: Is ocean freight cheaper than air freight?
A: Yes, ocean freight is generally more cost-effective than air freight, especially for large or heavy shipments. While air offers speed, ocean shipping provides better cost-efficiency when transit time isn’t as critical. Choosing the right mode depends on your budget, cargo type, and delivery requirements.

Q: What documents are required for ocean freight?
A: Key documents ensure legal, efficient, and compliant movement of goods. These typically include a Bill of Lading, Commercial Invoice, Packing List, Certificate of Origin, and any required export or import licenses. A freight forwarder will help prepare and verify these documents to avoid customs delays and ensure smooth transit.

Q: Can I track my ocean freight shipment?
A: Most ocean freight forwarders and carriers offer real-time tracking tools that show your shipment’s status at key milestones. These platforms track container numbers, vessel movements, and estimated arrival times. Full visibility helps you manage inventory, anticipate delays, and keep your supply chain on schedule.