Ocean Freight Key Terms

Learn ocean freight terminology before you get started

Ocean freight is one of the cheapest and most convenient ways to ship goods overseas, particularly items that are very large. It is ideal for companies that do not require urgent shipping.

If you're just getting started with ocean freight, you may find that there are a lot of terms that you do not know. However, it won't take long before you know whether you have an FCL or LCL and whether your shipment is eligible for the OFR Program.

 

Full container load (FCL) and less than container load (LCL)

When items are shipped overseas, they are often placed in large containers that conveniently stack to make the best use of space on a ship. A full container load (FCL) is enough items to fill a whole container. If your shipment is a less than container load (LCL), it may be combined with other companies' goods.
Try: Learn more about full container loads and less than container loads at Amid Logistics.

Dry freight vs. open top container

Some shipping containers are completely enclosed. These are called dry freight containers or closed containers. Others that are exposed to the air are called open top or open air containers. When choosing what type is best for you, consider what kind of damage your products may receive from salty ocean air.
Try: See pictures of a dry freight container and an open top container at Ocean Air Logistics.

Ocean Freight Reimbursement (OFR) Program

If you work for a non-profit organization that is shipping goods overseas for humanitarian missions, you may qualify for the Ocean Freight Reimbursement (OFR) Program. The OFR program is government sponsored and will reimburse your shipping costs for donated goods.
Try: Learn more about the Ocean Freight Reimbursement Program from USAid.

Customs regulations

Each country has a different set of customs regulations, which are rules for what items may be imported and exported into a country. Some countries, for example, prohibit plants or certain types of meat.
Try: Visit the U.S. Customs and Border Patrol to learn more about customs regulations for the United States. Visit the embassies of other countries if you plan to export goods.

Freight forwarder

A freight forwarder is an expert in the fields of import and export. They understand the rules for many countries and make all arrangements for the import/export of your goods, including preparing paperwork and reserving ship space.
Try: Export.gov explains the role of a freight forwarder.

National Customs Brokers & Forwarders Association of America (NCBFAA)

The National Customs Brokers & Forwarders Association of America is a professional organization for those in the import and export fields, as well as those in the ocean freight industry.
Try: Learn more about the NCBFAA from their website.

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