Maritime shipping is the transport of goods by sea using vessels. It is the backbone of international trade, carrying over 80% of global trade volume. Ships move everything from raw materials (oil, grain, coal) to finished goods (cars, electronics, clothing). Shipping routes connect major ports worldwide, forming a complex global network. The industry operates 24/7, year-round, and is regulated by international bodies like the International Maritime Organization (IMO).
A freight forwarder is a logistics expert who organizes shipments for businesses. They do not own ships, planes, or trucks. Instead, they book space with carriers, handle customs paperwork, arrange insurance, and manage the entire transport process from door to door. They act as the single point of contact for the shipper.
A shipping line (carrier) owns and operates ships. They transport goods between ports on regular schedules. Examples: Maersk, MSC, CMA CGM. Shipping lines are responsible for the safe and timely movement of cargo by sea.
A container is a standardized steel box used for transporting goods by sea, rail, and truck. Containers protect cargo from weather, theft, and damage. Standard sizes: 20ft (TEU) and 40ft (FEU). They are stackable and can be loaded/unloaded quickly at ports.
FCL (Full Container Load): Entire container is used by a single shipper. The shipper fills and seals the container – it remains sealed until destination. FCL is ideal for large shipments, providing faster transit and less handling.
LCL (Less than Container Load): Multiple shippers' cargo is consolidated into one container. Ideal for small shipments. Cargo is consolidated at a Container Freight Station (CFS) and de-consolidated at destination. LCL is slower and has more handling than FCL, but cost-effective for small volumes.
The Bill of Lading is the most important document in shipping. It serves three functions:
The Commercial Invoice is issued by the seller to the buyer. It describes the goods, their value, and terms of sale. Customs authorities use it to calculate duties and taxes. Critical for customs clearance.
The Packing List provides detailed information about the cargo inside each package or container: number of packages, weight, dimensions, marks. Used by customs and forwarders to verify cargo.
Demurrage is a fee charged by the shipping line when the consignee does not pick up the container within the free time at the destination port (typically 3-7 days).
Detention is a fee charged when the consignee keeps the container outside the port (e.g., at their warehouse) beyond the allowed free time.
Incoterms are standardized rules published by the ICC that define responsibilities of buyers and sellers in international trade. They clarify who pays for shipping, insurance, customs duties, and who bears the risk. Common Incoterms: EXW, FCA, FOB, CIF, DAP.
FOB means the seller delivers the goods onto the vessel at the named port. The buyer bears all costs and risks from that point onward. Seller handles export clearance. Used only for sea transport.
CIF means the seller pays for cost of goods, ocean freight, and minimum insurance to bring goods to the destination port. Seller handles export clearance. Buyer bears risk once loaded on vessel.
Booking is reserving space on a vessel for cargo. The shipper or forwarder contacts the shipping line with cargo details, container type, origin, destination, and preferred sailing date. The line confirms with a booking number.
Customs clearance is the process of submitting documents and paying duties to allow goods to enter or leave a country. It involves filing a declaration with Commercial Invoice, Packing List, Bill of Lading, and other documents.
Marine cargo insurance protects the cargo owner against financial loss due to damage, theft, or loss during transit. It covers risks like sinking, fire, collision, and natural disasters.