Detailed Guide to the Sea Freight Process

The sea freight process involves multiple coordinated steps requiring careful preparation and compliance with international trade regulations. For small-to-medium enterprises sourcing from China, understanding these key phases ensures cost-effective and timely delivery of goods.

1. Freight Booking & Documentation Preparation
Initiate the process by providing your freight forwarder with critical details: container type (20GP/40GP/40HQ), cargo weight, commodity description, HS code, and destination port. Required documentation typically includes:

• Commercial invoice (containing Incoterms® 2020)
• Packing list with gross/net weights
• Bill of lading instructions
• Certificates of origin or specialized permits (e.g., FDA for food products)

2. Container Allocation & Loading
Three loading options exist based on operational needs:

• Factory Loading: Ideal for full container loads (FCL), requiring valid Dangerous Goods Declaration if applicable
• Warehouse Consolidation: Suitable for less-than-container loads (LCL), with cargo secured at bonded facilities
• Port-side Stuffing: Direct loading at terminal CFS (Container Freight Station)

Pro Tip: Verify container integrity through pre-trip inspection reports (PTI) and document seal numbers before loading.

3. Customs Clearance
Key submission timelines:

• Submit export declaration 48 hours before cargo loading (ISF-5 for US-bound shipments)
• Provide HS classification with 6-8 digit codes
• Include fumigation certificates for wooden packaging

4. Vessel Loading & Ocean Transit
Critical milestones:

• Cargo cutoff: 72-96 hours before estimated time of departure (ETD)
• VGM (Verified Gross Mass) submission deadline: 24 hours pre-loading
• Monitor real-time vessel positions via AIS tracking systems

5. Destination Operations
Post-arrival procedures vary by country:

• US Imports: File ISF-10 24 hours before loading at origin port
• EU Clearance: Submit ENS (Entry Summary Declaration) upon arrival
• ASEAN Countries: Prepare ASEAN C/O Form D for duty concessions

6. Cargo Delivery
Final steps involve:

• THC (Terminal Handling Charges) settlement
• Demurrage/detention cost management
• Last-mile coordination with local drayage providers

Cost Optimization Strategies

• Utilize FAK (Freight All Kinds) rates for mixed commodities
• Explore triangular routing options for multi-country consolidation
• Implement E-seal technology for reduced cargo inspections

Compliance Checklist
☑ Verify restricted party screening (OFAC, EU Sanctions List)
☑ Obtain non-manipulation certificates for transshipment goods
☑ Maintain AES (Automated Export System) filings for high-value shipments

Risk Mitigation Measures

• Allocate 10-15% buffer in transit timelines for potential port congestion
• Secure marine insurance covering General Average contributions
• Implement track-and-trace systems with exception alerts

This operational blueprint enables SMEs to navigate sea freight complexities while maintaining 3-5% lower logistics costs compared to spot market rates. Regular audits of freight forwarder performance metrics (on-time delivery, damage rates, documentation accuracy) ensure sustained supply chain efficiency.