Your comprehensive ocean freight visibility guide 

A quick overview for people who are not already familiar with the term: most readers of this guide are already familiar with the industry basics and can skip ahead to section 3.

International ocean freight shipping refers to the transportation of goods by ship over the ocean. It is one of the most common methods of transportation for international trade, as it allows for the shipment of large quantities of goods at a relatively low cost. Ocean freight services can include full container load (FCL) or less than container load (LCL) options, as well as specialized services, such as refrigerated or oversized cargo. The freight is typically loaded on the ship at a port of origin (PoL), then transported to a port of destination (PoD), where it is offloaded and sent to its final destination by truck, train, or another mode of transportation.

• Cost-effective: ocean freight is typically less expensive than other modes of transportation, such as air freight, for large shipments or bulk cargo.
• High volume: ocean freight can handle large volumes of goods, making it a desirable option for shipping large quantities of products at once.
• Reliability: ocean freight services are generally reliable, with a well-established infrastructure, and many ships and ports.
• Efficiency: it can be more efficient than other modes of transportation, as ocean freight can carry large quantities of goods at once.
• Environmentally-friendly: shipping by sea generally has a lower carbon footprint than air freight, making it an environmentally-friendly option.
• Customs clearance: ocean freight includes customs clearance as a standard service.
• Easy transfer to other forms of transportation: shipping containers can be transferred to other forms of transportation, such as by road or rail, making the transfer easy and smooth. Knowing which sea ports are connected to rail is often an important consideration for containers that need to be imported from overseas and then transported inland. All ports offer truck access, but not all have rail access.

The world of ocean freight is dynamic, and it’s difficult to know what could go wrong or how cargo could be delayed. An ocean freight visibility (OFV) solution can help by providing valuable insights and empowering importers, exporters, and freight forwarders to improve the efficiency of their logistics operations. By relying on the most accurate ETA predictions, real-time visibility, plus port and terminal performance and congestion insights, ocean freight companies can maximize their ROI and better serve their customers.

Accurate ETAs that enable tracking of arrivals and departures save costs. This is crucial for refuting incorrect invoices. When an invoice is received for detention and/or demurrage charges, you’ll be informed of how many “free days” you had, how many days the container was there for, and the price of that duration. These times and dates aren’t available for long, and often it’s difficult to refute invoice charges. With an ocean freight visibility solution, you can accurately understand the arrival and departure times, ensuring no extra money is wasted. There are many other ways to save with an automated OFV solution: 

“Many freight forwarders are in cost-cutting mode in preparation for a prolonged recession. Some of the biggest shipment operation expenses are a result of inefficient resource allocation in areas such as tracking estimated time of arrival (ETA) updates and warehouse management, and of fees and penalties that are a result of changes in container arrival dates to their POD, such as detention and demurrage, and haulage rebooking,” according to our previous Windward blog post.

Industry 4.0, also known as the “Fourth Industrial Revolution,” refers to the integration of advanced technologies, such as the Internet of Things (IoT), artificial intelligence (AI), and automation into manufacturing processes. An ocean freight visibility solution using AI is just this.

This innovative technology can track containers automatically and provide automated carrier container milestones and geofenced ATD and ATA timestamps. When manual processes are automated, resources can be reallocated to other important tasks, such as customer service and support. In today’s economic climate, reducing operational costs is a must. When manual processes are automated, it makes it easier to avoid detention and demurrage fees and minimize invoice volume and processing times. 

When it comes to the ocean leg of the supply chain, it can be tricky to know exactly how the logistics will unfold. Many unknown factors, like port congestion, could delay the process. With an ocean freight visibility solution, these unknown factors become visible. 

Warehouse planning for importers and exporters in the maritime industry involves organizing and optimizing the storage and handling of goods in a warehouse, or other storage facility. This includes determining the most efficient layout for the warehouse, organizing the storage of goods to minimize the risk of damage or loss, and ensuring that goods can be easily accessed and moved when needed. 

It also includes managing inventory levels, scheduling shipments, and coordinating with logistics providers to ensure that goods are delivered on time and in good condition. This is especially important for goods in retail, like seasonal items that need to be delivered at the start of the season and not later. It’s also important that the right amount of people are working during shifts. Extra labor is often needed and if the shipment is delayed, the workers still need to be paid. The goal is to minimize costs, while maximizing efficiency and productivity.

An ocean freight forwarder is a third-party logistics provider that arranges the transportation of goods on behalf of a shipper. They act as an intermediary between the shipper and the various transportation providers, such as airlines, shipping lines, trucking companies, and railroads. They handle the logistics of moving goods from one point to another, including coordinating the various modes of transportation, arranging customs clearance, and ensuring compliance with regulations. 

Forwarders also provide additional services, such as warehousing, packaging, and insurance. Freight forwarders help shippers with the logistics and coordination of moving goods, including providing a single point of contact for tracking shipments and providing cost-effective options for transportation. They also assist businesses with navigating through the complexities of international trade, including customs regulations and tariffs. Overall, freight forwarders help businesses simplify the logistics of moving goods, making it easier for them to focus on their core operations.