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In terms of maritime trade, this refers to the exchange of goods through the transportation of such over international waters. However, maritime trade can also involve domestic or smaller bodies of water as well. Essentially, all trades that will involve the transportation of goods over a body of water can be referred to as maritime trade.
Advantages of international maritime transport of goods
The advantages of maritime transport of goods include:
The cost – which is more affordable when compared to rail, road, or air freight with fewer maintenance expenses
It’s the best way to transport bulky goods – heavy items can be moved with ease as ships are suitable to carry machinery and industrial parts unacceptable for air freight
Eco-friendliness – consuming less fuel makes sea transportation preferable for many organisations as reducing the carbon footprint becomes increasingly more important
Safety guarantees – as maritime security increases and containers are being constructed to be sealed and locked during the journey, cargo loss is significantly reduced
Foreign trade contacts – connecting the global trade markets is an essential part of ocean shipping
Reduction in duties and VAT – these are much less expensive as they’re calculated as a percentage cost of the total plus the applicable export and import fees
Flexibility – smaller shipments can be arranged in a group with other cargo, and bulk cargos fitted into single containers
Disadvantages of sea freight transportation
The main disadvantage is the time it takes to get cargo from one location to the next. It can take weeks to get goods delivered to their final destination. Delays and obstructions on the journey can be caused by adverse weather conditions, resulting in possible damage to your shipment. And basic freight rates can alter due to fuel and currency surcharges.
You may be unable to track your shipment, particularly if routes and timetables need to change. You will have to pay port taxes and duties and bear in mind that proper shipping ports aren’t available in some parts of the world – or they’re not big enough to for larger vessels. This lack of facilities can massively hinder reliable delivery.
If your shipment travels through relatively unchartered territories there’s a slight possibility of raiding by pirates. Although this is a rare occurrence it needs to be considered as losing your entire shipment can be devastating for your business.
To reach its final destination your cargo will also need to be loaded onto a further means of overland transport.
Primary types of ocean shipping
There are basically two types of ocean shipping and these are:
Full container load
The entire consignment will be transported within the container and owned by one individual. The shipping costs in this case will be calculated and charged at a flat rate per full container.
Less than container load
In circumstances where there are not enough goods to fill an entire container, it will be shared with other parties. Here the shippers are charged per cubic meter following arrangements with a consolidator who will try and accommodate the goods.
Source- https://barcelona-logistica.es/en/advantages-and-disadvantages-of-maritime-transport-of-goods/
