Ocean freight is one of the largest sources of trade worldwide.
It’s responsible for carrying more than 80% of the world’s goods. Not to mention, this trade is responsible for building entire economies by carrying goods through sea routes for trade and goods.
The advances in air freight, rail, and road transportation are unquestionable.
What could be the reason?
Well, the first reason is that we are living on giant pieces of land floating on oceans.
Another factor that contributes to ocean freight’s unquestionable importance is the unique advantage it offers. Due to these perks, ocean freight is literally the lifeblood of global commerce.
Economies of Scale: Moving Massive Volumes Efficiently
The primary advantage of ocean freight lies in its unparalleled capacity to transport vast amounts of cargo at once. A single large container ship can carry upwards of 20,000 twenty-foot equivalent units (TEUs), each capable of holding several tons of goods. This scale is simply unmatched by any other mode of transport.
Air freight, while faster, is prohibitively expensive and severely limited in capacity, suitable only for high-value, time-sensitive goods.
Rail and road transport, on the other hand, are limited by geographical constraints and are best suited for regional or last-mile deliveries rather than intercontinental trade.
Ocean freight’s ability to handle massive volumes makes it the backbone of global supply chains, especially for bulk commodities like oil, coal, grain, and raw materials. These goods are essential for the functioning of industries and the production of consumer goods worldwide.
The economies of scale achieved through ocean shipping allow companies to spread transportation costs over large quantities of goods, significantly reducing the cost per unit. Which brings us to the next perk that the ocean freight offers.
Cost-Effectiveness: The Cheapest Option for Long-Distance Trade
Cost is a critical consideration for businesses, and ocean freight is by far the most economical option for long-distance trade.
While the initial investment in a shipping vessel is high, the operational costs per ton to kilometer are the lowest among all modes of transportation.
This cost advantage is particularly important in a world where supply chain costs can make or break the competitiveness of products in the global market.
The affordability of ocean freight has a democratizing effect on global trade, allowing even smaller economies and companies to participate in international markets. This accessibility is crucial for developing countries that rely on exporting goods like textiles, agricultural products, and manufactured goods to drive economic growth.
Without ocean freight, these countries would face significantly higher costs, reducing their ability to compete in global markets and limiting economic development.
Versatility and Flexibility: Adapting to Global Trade Needs
Ocean freight offers unmatched versatility and flexibility, accommodating a wide range of cargo types, from bulk commodities and breakbulk cargo to liquid bulk and containerized goods.
This flexibility makes it possible to transport everything from raw materials and agricultural products to electronics and automobiles.
Moreover, shipping companies have developed specialized vessels, such as tankers, bulk carriers, and container ships, to optimize the transportation of different types of cargo.
Furthermore, the global network of ports and shipping lanes ensures that ocean freight can reach almost any corner of the globe. This extensive network is a crucial asset in today’s interconnected world, where companies source materials and sell products across multiple continents.
The ability to move goods seamlessly across international borders via a well-established shipping infrastructure is a significant advantage that ocean freight holds over other forms of transportation.
Environmental Considerations: The Greener Choice for Bulk Transport
While ocean freight is often criticized for its environmental impact, it is, in fact, one of the most environmentally friendly modes of transportation when measured by emissions per ton-kilometer.
Modern ships are becoming more fuel-efficient, and the industry is increasingly investing in cleaner technologies, such as liquefied natural gas (LNG) and wind-assisted propulsion systems, to reduce emissions further.
Compared to air freight, which has a much higher carbon footprint per kilogram of goods transported, ocean freight is a relatively greener choice, especially for bulk and non-urgent goods.
In the end…
Ocean freight isn’t just a method of transportation—it’s the lifeline of global trade. From moving massive volumes of goods efficiently to offering cost-effective and environmentally friendlier options, it’s clear why ocean shipping remains the go-to choice for businesses worldwide.
