How International Ocean Shipping Works: A Step-by-Step Guide with Cost Breakdowns
Publish Time: 2025-04-29 Origin: Site
The 7-Step Ocean Freight Journey: Who Pays What?
1. Export Haulage (First Mile)
What happens: Goods move from shipper’s location to freight forwarder’s consolidation warehouse
Transport modes: Truck (most common), rail, or multimodal
Who pays?
Shipper (if pre-agreed) → Usually hires local trucker
Consignee → Often uses forwarder’s integrated transport
Pro Tip: For LCL shipments, ensure goods arrive at CFS (Container Freight Station) before cutoff.
2. Export Customs Clearance
Key requirement: Mandatory for all exports; handled by licensed broker
Who handles?
Freight forwarder (85% cases)
Shipper’s separate customs agent
Critical timing: Must complete BEFORE goods leave origin country
3. Origin Handling (CFS to Port)
Process flow:
Cargo inspection & tallying
Consolidation with other LCL shipments
Container loading & port transfer
Hidden costs: THC (Terminal Handling Charges), documentation fees
4. Ocean Transport
Carrier selection: Forwarder books space with shipping lines (e.g., Maersk, MSC)
Cost components:
Base ocean freight
Surcharges (BAF, CAF, war risk)
Who pays? Shipper or consignee per Incoterms®
5. Import Customs Clearance
Start time: Can initiate pre-arrival (e.g., 72h before docking)
Key docs: Commercial invoice, packing list, Bill of Lading
Duty trap: Average 5-15% of cargo value in most countries
6. Destination Handling
Activities:
Port unloading → Container de-stuffing → Cargo prep for pickup
Fees to expect:
Port terminal charges
DO (Delivery Order) fees
CFS handling
7. Import Haulage (Last Mile)
Delivery options:
Forwarder’s trucking network
Consignee’s local carrier
Golden rule: Shipper pays if DDP terms; consignee pays for DAP
Cost Allocation Cheat Sheet
| Step | Shipper Pays? | Consignee Pays? |
|---|---|---|
| Export Haulage | ✔ (EXW/FOB) | ✔ (CIF/DDP) |
| Origin Handling | ✔ (common) | ❌ |
| Ocean Freight | ✔ (FOB/CFR) | ✔ (CIF/DDP) |
| Import Duties | ❌ | ✔ (unless DDP) |
Why This Matters Now:
E-commerce surge: 60% of SMEs overpay by not understanding these steps
Supply chain delays: 30% of holdups occur at clearance stages
Cost savings: Proper Incoterms® selection can cut logistics spend by 15%
"Think of these 7 steps as dominoes—one misstep topples your entire shipment timeline."
— Logistics Manager, Kuehne+Nagel