Sizes of Sea Freight Containes | Stuffing Methods | Types of PU Locations | Reading FCL Ocean Freight Rate | Avoiding Mistakes with Sea Freight | S.O.C.
FCL – FULL CONTAINER LOAD FOR SHIPPING GOODS FROM AND TO THE USA BY SEA
FCL – an abbreviation for “Full Container Load” for Import and Export cargo to and from the USA. This term is commonly used to describe a sea freight service that is designed for ocean freight shipments of cargo where shipper has exclusive use of sea freight multimodal container. As a rule sea freight containers are loaded and sealed by shipper at the shipper's facility. Then it transported by ocean, rail and/or truck directly to the point of final destination.
Notice: If you have a cargo sufficient to fill a 20 foot sea freight container, we still recommend you to compare FCL to LCL option. In certain circumstances you may find that using LCL sea freight service for shipping goods by sea can be more convenient and cost-effective for you than FCL or International Moving companies service. For example, when you self-deliver boxed cargo to an international transportation company ship-terminal (CFS - Container Freight Station), you eliminate sea freight containers pre-carriage and waiting charges, which may be equal or even higher than shipping cost on ocean freight (i.e. shipping cost for sailing of your goods by sea) itself. Also you are not obligated on the sea freight container return to a carrier's destination container yard.
However, for sizable sea freight shipments that fit into 40 foot container, FCL can be the only option in order to make your Import or Export shipment by sea efficient. Shipping goods to or from the USA in multimodal sea freight containers should be safer and more cost effective than using other sea freight services such Ro-Ro or Break-Bulk.
Unlike using a service provided by International Moving Companies (most of the time when you relocate overseas), which would pack and load all your stuff in a sea freight container; when using FCL ocean freight service from an International Transportation Company (or arranged by a Freight Forwarder), the International Transportation Company will just deliver the container for the load to your door. You have to load and secure your good in the sea freight container. Trucker will wait for one or two hours for free. Then that sealed sea freight container will begin its international trip to the nominated destination. You (or your consignee/recipient) are held responsible to meet the ocean freight container at the destination.
Yes, services offered by International Moving companies may be more convenient. However, after you will compare total shipping costs between International Moving companies and International Transportation Companies (or arranged by a Freight Forwarder) in quotes obtained, you find the significant difference in the price on shipping your household goods from or to the USA. We suggest you to always shop around in advance. Then compare prices and service packages offered by International Moving companies and International Transportation Companies/Freight Forwarders.
MULTIMODAL SEA FREIGHT CONTAINERS SPECIFICATION
Besides commonly used 20'STD, 40'STD and 40'HC ocean freight containers, there are numerous of other types of sea containers including 45' High Cube, Open Tops and Flat Racks sizes of 20' and 40' etc. However, as a rule these types of sea freight containers are subject to equipment availability from Steam Ship Lines (or direct carriers or International Transportation Companies). In certain circumstances it can be limited. Then, if you ship a regular cargo by sea, we suggest planning your sea freight shipment by using one of these three types of multimodal sea freight containers below.
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20' STANDARD MULTIMODAL SEA FREIGHT CONTAINER
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Interior Dimensions (L x W x H): 5.919 m x 2.340 m x 2.380 m (19'-5'' x 7'-8'' x 7'-9' 1/2'') Door Opening (W x H): 2.286 m x 2.278 m (7'-6" x 7'-5 1/2") Tare Weight: 1,900 kg (4,189 lbs) Cubic Capacity: 33.0 cbm (1,165 cubic ft) Payload* :22,100 kg (48,721 lbs) |
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40' STANDARD MULTIMODAL SEA FREIGHT CONTAINER
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Interior Dimensions (L x W x H): 12.051 m x 2.340 m x 2.380 m (39'-6 1/2''x 7'-8'' x 7'-9 1/2'') Door Opening (W x H): 2.286 m x 2.278 m (7'-6" x 7’-5 1/2") Tare Weight: 3,084 kg (6,799 lbs) Cubic Capacity: 67.3 cbm (2,377 cubic ft) Payload*: 27,397 kg (60,401 lbs) |
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40' HIGH CUBE MULTIMODAL SEA FREIGHT CONTAINER
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Interior Dimensions (L x W x H): 12.056 m x 2.347 m x 2.684 m (39'-6 1/2'' x 7'-8 1/4''x 8'-9 1/2'' Door Opening (W x H): 2.340 m x 2.585 m (7'-8" x 8'-5 3/4") Tare Weight: 2,900 kg (6,393 lbs) Cubic Capacity: 76.0 cbm (2,684 cubic ft) Payload*: 29,600 kg (65,256 lbs) |
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*Payload weight exceeds over-the-road legal limits in US and Canada. Recommended maximum ocean freight containers payload for the US and Canada is 35,000 lbs per 20' and 42,000 lbs per 40'.
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Note: International Moving Companies will use for your international moving the same containers with International Transportation Companies. Keep it in mind when estimate capacity of ocean freight containers for your international shipment from or to the USA.
THREE METHODS OF SEA FREIGHT CONTAINERS STUFFING:
- A 'LIVE LOAD' - means that International Transportation company's trucker will deliver an ocean freight container to your location and wait while you load, secure and seal the container for the international shipment. Free loading time may vary from one to two hours. If you will exceed the free time limit, then you pay approximately $75 per hour for each additional hour of loading time.
- A 'DROP AND PICK' - means that International Transportation company's driver will deliver and leave the ocean freight container at your location for several days. Then he will return to pick up the loaded, secured and sealed sea freight container to the international transportation company's container yard (CY) for the international trip by sea. In respect of calculation of total shipping cost of you international shipment by sea, the inland part of the shipping cost at origin with 'drop and pick' generally costs twice as much as with 'live load'. However, 'drop and pick' has the advantage that shipper can take a time on loading and securing commodity in the sea freight container.
If you load a sea freight container near a seaport or International Transportation company's container yard, the cost for 'drop and pick' is often not much higher than with 'live load'. That added shipping cost might worth of taking your time on loading and securing the ocean freight container. However, if you locate a good distance from the port it is possible that a 'live load' will be the only option available for your import or export by sea.
- ‘IN A WAREHOUSE QUALITY LOADING’ - (do not confuse with a service from an International Moving company) means that shipper self-delivers loose cargo to an International Transportation company's warehouse or to a loading dock of company, which specialize in quality loading of cargo into sea freight containers. Once goods are received and accepted by the ship terminal, it will be loaded and secured in the ocean freight container. Then the sealed sea freight container will be delivered it to the ocean carrier’s Container Yard (CY) assigned for your international shipment.
In a Warehouse Quality Loading method is not always available. This freight service can be costly. However, it should be less expensive than using an International Moving company. Plus the professional quality loading company should guarantee safety of cargo in the container during its international shipment by sea. If the quality loading company locates near a seaport of departure assigned for your shipment by sea and has a permit to ocean freight carrier’s CY, then with this method you may save on shipping cost of inland pre-carriage part of your international shipment as well.
Note: This topic is not intended to discuss packages of services offered by International Moving Companies on international shipments in multimodal sea freight containers. Information on services offered by International Moving Companies is widely available on the Web.
TYPES OF PICKUP LOCATIONS IN RESPECT OF FCL SEA FREIGHT SERVICE:
- Commercial Facility – Pickup location provides a loading dock with a ramp and forklift. Shipper is responsible for loading and securing cargo in a sea freight containers delivered for the international shipment by International Transportation Company's truck (or arranged by a freight forwarder).
When your container(s) leaves your facility make sure that you have on hand a copy of dock receipt provided by trucker, signed and dated by the trucker, with the container and seal number in it.
- Residential location – SUBJECT TO AVAILABILITY. No ramp is available. Shipper loads an ocean freight container by his own. Shipper is held responsible for loading and securing cargo in sea freight containers.
You may consider hiring a professional stuffing company (an international or local moving company) in purpose to load your ocean freight container. If you are hiring an international or local moving company then remember pay attention to the time slot for the sea freight container delivery confirmed by the international transportation company or its trucking company at a time of booking your international shipment. International Transportation Company and/or its trucking company cannot 100% guarantee this time slot on the ocean freight container delivery. Discuss that with your international or local moving company assigned for the load in advance.
- Warehouse – SUBJECT TO AVAILABILITY. Shipper delivers pre-packed cargo to the nearest available international transportation company's warehouse/terminal. Once your goods are received, a sea freight container will be delivered to the warehouse for the load. Rate will include all applicable charges related to cargo receiving at the warehouse, storage (if any), loading and securing cargo in the sea freight container for its international shipment overseas from or to the USA.
- Port / OCEAN FREIGHT ONLY – NO SEA FREIGHT CONTAINER PRE–CARRIAGE OR ORIGIN PORT CHARGES WILL BE INCLUDED IN THE RATE OFFERED. The 'ocean freight only' option is available for:
a. Shippers highly experienced in international shipments. b. Freight forwarders. c. Sea freight shipments of ´shipper owned containers´ (SOC) including above a. & b. requirements.
With this 'ocean freight only' option shipper is also entirely responsible for obtaining permits for access to piers or rail-yards of steam ship line (SSL or international transportation company used on your ocean freight shipment from or to the USA). In the USA this generally requires a Uniform Intermodal Interchange and Facilities Access Agreement, or UIIA. Any roll-over charges that may appear during sea freight containers pulling and any other charges that may be added to the shipping cost of inland part of international shipment with this 'ocean freight only' option are on shippers account.
Notice: For multimodal ocean freight containers rented by the shipper from a SSL (international transportation company used on your ocean freight shipment from or to the USA), the shipper is responsible for the return of sea freight containers at the destination. When use service from an International moving company, discuss the sea freight container's return issue in advance.
HELPFUL HINTS. READING FCL SEA FREIGHT QUOTATIONS.
Most of the time FCL ocean freight rates offered by a freight forwarder for import or export to or from the USA would be ‘DOOR-PORT FOB vessel’ or to be more specific - ‘EXW (Ex Works) named place of cargo pickup TO named destination seaport (or container/rail yard in a landlocked final destination’s city), FOB (Free On Board) ship’s rail at named port of origin’.
That means that ocean freight quotations offered contain charges related to: container(s) delivery to your location for the load and returning this loaded sea freight container back to the ocean freight carrier’s container yard (CY); origin THC – Terminal Handling Charges and fees related to origin’s customs export formalities and export document turnover; and cost for sailing of the sea freight container(s) to the final destination named in the ocean freight rate confirmation and in carrier’s ocean freight bill of lading thereafter.
However, these ocean freight quotations DO NOT include any charges at destination.
Upon arrival your ocean freight container to an import port of entry of destination country, consignee (recipient) will be responsible for all charges related to the imported cargo recovery at the destination. I.e. in order to get this cargo released he/she must pay destination to THC, import Customs related charges, cargo release and ocean freight carrier’s destination agent fees, etc at the destination.
A sample of FCL sea freight quotation (export from the USA)
| COMMODITY: |
Dry salted Lamb skins |
| EXW (Ship from): |
Dixon CA 95620, USA |
| SHIP TO: |
Novorossiysk, Russia |
| BASIS: |
Door to Port |
| CARRIER: |
OOCL |
| TRANSIT: |
35 Days |
| FREQUENCY OF SAILING: |
Weekly |
OCEAN FREIGHT RATES: 20' Standard USD 4050; 40' Standard USD 5150; 40' High Cube USD 5150 |
* Above rates are valid through 6/7/2007 * Rates DO NOT include import customs clearance fee, duties, taxes or marine cargo insurance. * Marine cargo insurance cost is 1.5% of cargo value subject to deductible of usd 1,000 per container; minimum premium usd 350 per sea freight container. * Maximum legal payload 18 metric tons per 20' & 20 metric tons per 40'; cargo must be evenly spread along sea freight container floor. * Plus International Ship and Port Facility Security Code (ISPS) Euro 14 per container for all cargo via UK/Continent/Scan-Balt/Black Sea * Plus ocean freight carrier security fee (CSF) for all USA and Canadian ports of loading, each export ocean freight container in the amount of USD $6 * Containers must be returned "CLEAN AND ODOR FREE". Any container cleaning costs if any will be for account of the shipper.
AVOIDING COMMON MISTAKES WITH FCL OCEAN FREIGHT:
A. Storage/demurrage on ocean freight shipments at a destination.
In several days before your cargo shipped by sea will arrive to the destination port of entry your consignee (recipient) should receive an import notification. As a rule it will be an arrival notice faxed or e-mailed to the consignee. Otherwise it can be a phone call or mail. Make sure that contact information of consignee initially provided in your sea freight booking request is correct and valid.
Act promptly. Your free storage time at a destination ocean freight carrier's container yard is limited. Depending on destination it varies between 7 to 14 days. Thereafter storage/demurrage may increase total shipping cost for your international shipment by sea dramatically.
Laws allow your consignee working on the imported cargo recovery directly with destination county’s customs and other parties related to your international shipment.
However, if the consignee is not familiar with import procedures, we recommend him/her immediately request your international shiping company/its destination agent to complete the import cargo release on your behalf or forward the notice of arrival along with other documents required by destination authorities to a freight forwarder or destination customs broker. They will charge a reasonable fee for its service. However, they should obtain customs and warehouse releases on your import with no (or minimum) storage/demurrage charges on your international shipment by sea.
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Below is a sample of STORAGE/DETENTION & DEMURRAGE charges at MSC's CY in KOTKA, FINLAND.
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STORAGE/DETENTION
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DEMURRAGE
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Open space, non-imo containers - Cost per day / per container
EUR € 20' 40'
Free Time 7 days 7 days
8th to 14th day 0.95 1.90
15th to 30th day 1.95 3.90
Thereafter 3.85 7.70
For reefer containers please add following charges on a.m.: Connecting/starting/disconnecting of reefer container EUR 27,00/pc. (During nights and weekends double price) Control of temperature EUR 5.00/pc/day. Electricity EUR 17,00/pc/day
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In Euros (€). Free days are calendar consecutive days from date of discharge.
STANDARD 20'DV 40'DV 40'HC
Free Time 7 days 7 days 7 days
8th - 14th day 10.00 € 20.00 €< 20.00 €
Thereafter 20.00 € 40.00 € 40.00 €
Thereafter 90.00 € 110.00 € 130.00 €<
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B. S.O.C. - Shipper Owned Containers
When you book an FCL ocean freight shipment and request a sea freight container delivery for the load you “rent” the container from the carrier (international Transportation company). Container’s “Rent” charges are included in ocean freight rate. However, shipper should always remember that after container is released at the destination and left carrier’s Container Yard – CY to be unloaded at the consignee's facility, it must be returned to the carrier’s CY within a certain time limit. Otherwise container detention charges may apply on the ocean freight.
If your destination facility is far away from carrier’s CY then you should pay attention to possible charges on container detention.
For example, upon your cargo release at the destination seaport (CY) your sea freight container must continue to travel by rail thousands mile away from the CY in bond or not. Then the empty sea freight container must be returned back to the ocean carrier's CY.
In this situation, in order to avoid sea freight container detention charges and eliminate expenses related to the container return, the only option is using S.O.C. - Shipper Owned Containers, i.e. an "One Way" Container.
S.O.C. means that you buy a container for the ocean freight shipment at origin. Then the container is your property and you are not obligated to its return. After it is emptied you may sell it, use for storage, destroy it etc. There are a lot of dealers in every country around the world that sells new and used multimodal sea freight containers. Consider S.O.C. in your shipment.
However, before purchasing a container for your international shipment you should consider:
Why do you need S.O.C? Consider a reload imported and released by customs cargo from your container to a trailer or in another container obtained at the destination.
If you still need a S.O.C then think about:
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Does rate offered effective for S.O.C?
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Does ocean carrier require a sea freight container condition survey before the container is loaded?
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Consider a crane usage for lifting your ocean freight container on/from chassis or flatbed. Most container delivery trailers are designed to slide containers off to the ground & cannot handle the weight of a loaded sea freight containers.
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Do not overload container. Consider road weight and ports cranes limitations.
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Do you have insurance of the type that will cover you in the event that container failure damages the cargo of others or the vessel? Most likely you insurance will cover your cargo, but not the damage you do to others.
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Notice: S.O.C may send a negative message to Customs. Customs know that "Shipper Owned Containers" may mean a "one way trip", it can often mean junk or even hazardous cargo and often purchased at the end of their service life.
Find more about S.O.C. used for international shipments by sea in this link
C. Shipper’s responsibilities on commodity and export and import shipping documents submitted to an international shipment
In respect of dealing with a freight forwarder, shipper should clear understand that he/she is responsible for description and legality of commodity and sufficiency of documentation submitted to an international shipment.
Carrier’s ocean freight bill of lading, final document that acts as a title for shipped goods, as a rule states ‘SHIPPER'S LOAD AND COUNT’ and ‘SAID BY SHIPPER TO CONTAIN’. That means that the ocean carrier (and a freight forwarder who represents this carrier) is not responsible for information provided by shipper on his commodity.
A freight forwarder should guide shipper in complexity of international shipment procedures. However, it is shipper’s responsibility to provide all necessary documents related to his international shipment that will be required by origin and destination country officials.
Below is the list of common used documents required to be submitted to an international shipment by sea:
MANDATORY DOCUMENTS:
A. Ocean freight Bill of Lading – Ocean Carriers transport document. Shows cargo routing, consigner, consignee, cargo description, etc.
B.1. For commercial shipments - Commercial Invoice. Complete description of commodity being shipped.
B.2. For shipping household goods and personal belongings overseas – Valued Packing List. An inventory list with value assigned to each item being shipped.
Notice: some courtiers require proforma commercial invoices for personal shipments as well. However, having a complete Valued Packing List submitted at origin, upon destination customs request, make it easier to transfer your Valued Packing List in form of proforma commercial invoice.
In respect of U.S. Customs, all Commercial Invoices (and Valued Packing Lists) must be in English and show:
Value of cargo in US Dollars (exchange rate = date of export); Shippers full name and address (M.I.D. – manufacturer’s identification); Consignee full name and address; Detailed description of cargo/freight; Quantity of cargo shipped; Weight of cargo shipped; Cargo’s Country of Origin ADDITIONAL DOCUMENTS DEPENDING ON COMMODITY AND COUNTRY OF ORIGIN:
D. Packing List – Breakdown description: pieces, weights and packing materials. (Examples - Wood Pallets, Skids, Crates, Boxes, Dunnage, Straw Packing, etc.)
E. Fumigation Certificate– Certification that cargo and packing materials were fumigated after cargo had been containerized and is free of Infestation.
F. Special Documents – Dependent on commodity and country of origin.
Visa Quota Visa/Quota Certificate of Origin North American Free Trade Agreement Certificate of Origin (N.A.F.T.A.) Packing Declaration Dangerous Goods Declaration – hazardous materials Fish and Wildlife Declaration Consular Legalized documents F.D.A. U.S.D.A. Anti-Dumping
Sizes of Sea Freight Containes | Stuffing Methods | Types of PU Locations | Reading FCL Ocean Freight Rate | Avoiding Mistakes with Sea Freight | S.O.C. |