Shipping is a huge industry. Almost every trade or business has been exposed to ocean shipping at some point. If you're thinking about venturing into the business world and considering ocean shipping as your primary mode of transportation, there are certain misconceptions you need to be aware of.
Get familiar with the facts to avoid nasty surprises that can cost you unnecessary delays. In this article, we'll address major misconceptions about ocean shipping.
1. Shipping is expensive
Not exactly correct. Yes, there is a cost to shipping. But compared to other international shipping methods, sea freight is definitely the most cost-effective. If you didn't already know, shipping accounts for 90% of world trade. That said, it is clearly the best and most cost-effective option for global importers and exporters.
If you're moving overseas and want to ship your household items by sea, reducing the number of items you bring with you when you move may cut costs. If you're looking for a cheap outlet, maybe it's best to consider leaving these behind (depending on their value) and buying new furniture in your new destination country.
At the end of the day, your final shipping fee depends a lot on how many items you're shipping. This brings us to the next point.
2. I can ship anything I want
Incorrect. Everything you put in the container needs to be listed on the packing slip and then submitted to customs inspection. Each country has its own regulations for certain commodities and commodities. Some items may be prohibited, while others may require you to obtain a special permit to enter. For example, if you're shipping wood-related items or have wood packaging material, you must make sure they're pre-treated. When in doubt, always consult your freight forwarder.
3. Container freight is always the same
You can't get any further from the truth. Not only do container shipping rates fluctuate regularly, they are also affected by many factors - some beyond your control. These include seasonal, political, and economic (demand and supply) factors. You should also be familiar with the concept of general rate increases or GRIs announced by shipping companies from time to time.
4. The content I post is private and not accessible to anyone but me
Sound the alarm! Even if only a fraction of the world's containers are inspected, you should not assume that your cargo will not be marked (randomly or otherwise) for inspection. For shipments arriving in the United States, the number is higher. But not a lot - 5%. U.S. Customs has only gotten stricter over the years, which means you should always be prepared for inspections that may occur.
5. I can plan my supply chain based on the estimated arrival date of my shipments
The latest figures show that only 74.7% of ships arrive on time. In other words, one out of every four shipments is late. If you think you can plan your logistics based on the estimated arrival date indicated by the shipping line, think again. The reliability of the carrier program has declined compared to last year and is still returning to its previous on-time rate. Late arrivals are not uncommon and can be the result of a variety of factors, including natural phenomena such as hurricanes, large shipments, etc. Keep up with the latest shipping news and keep up to date with the latest industry developments.
