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Sea freight is a shipping method used by businesses to transport large amounts of goods overseas by sea using cargo ships. Since it’s cost-effective, most businesses prefer to use this mode of transportation, when they have to move a huge quantity of goods.
Sea freight is distinct from traditional modes of goods transportation as ideally large loads of good, or heavy machinery is shipped through Sea freight.
In Sea freight, goods are transported in large metal containers (You must’ve probably seen one if you have been to a seaport). There are fewer restrictions imposed on sea freight. Sea freight is also used to transport several crucial commodities for a country, like Oil, Defence Equipment, and Aircraft.
How Does Sea Freight Work?
Sea freight is one of the most important parts of a supply chain. While moving goods through sea freight, you need to first contact a shipping company. These are big companies and are easier to contact.
Once you come in contact with these shipping companies, you need to instruct them about your product and the weight of your load, the type of goods you want them to transport, and from where you want them to pick up the goods. If you want to send your goods to the shipping company, you can do that too, or just pay a small fee and get your goods picked up from your supplier or from your address easily.
The logic behind the transport of only huge loads is simple, a shipping container is huge enough to transport tonnes of goods, and cannot be used to transport small quantities of goods due to the cost.
How Much Does Sea Freight Cost?
The cost of sea freight completely depends on your terms with the buyer or seller. There are many types of terms you can be with your seller on. The cost of Sea freight increases with the amount of responsibility your seller takes. If the goods are to be delivered to your doorstep, then the cost is supposed to be higher. If the goods are insured, you will have to pay for the insurance too. The total cost is determined before the shipping of goods, most of the good shipping companies are able to help you with that.
Some other variables that affect the cost are fuel prices, currency rates that fluctuate frequently, seasonal demands, and sea shipping capacity, which acts as a commodity. The value rises when the demand is higher than the supply.
