The freight forwarding industry moves almost everything you buy, yet most people never think about how it works. Journalist Rose George named her book about shipping Ninety Percent of Everything for good reason. Here are five facts about the freight forwarding industry worth knowing before you ship your own cargo.
1. Most of the world’s trade still travels by sea
Despite the growth of air freight and better inland transport, shipping remains the backbone of world trade. According to UNCTAD’s Review of Maritime Transport, around 80% of the volume of international trade in goods is carried by sea. For an island nation like New Zealand, sea freight is how most imports arrive and most exports leave.
2. Sea freight is the lower-emission option per tonne
Large ships burn a lot of fuel, so it is easy to assume they are the worst polluters. But per tonne of cargo moved, ships generally produce far fewer emissions than trucks or aircraft, because one vessel carries thousands of containers at once. The shipping industry is also under international pressure through the IMO to cut emissions further, and newer vessels are designed to be more fuel efficient.
3. Sea freight can save you a lot of money
For heavy or bulky cargo, sea freight is usually the cheapest way to move goods internationally. Sea freight is typically charged on weight or volume, whichever is greater, while air freight uses a chargeable weight that penalises bulky items. Sea is slower, but for anything that is not urgent the savings are significant. A good freight forwarder will help you balance cost and transit time.
4. Transit time can be planned around
Many first-time importers worry about how long sea freight takes. Depending on the route, a voyage can take anywhere from about a week to well over a month. The answer is planning: order earlier, build transit time into your stock planning, and use air freight for anything urgent. Your forwarder can give you realistic transit times for each trade lane.
5. Freight forwarders work through global networks
Freight forwarders compete with each other, but many also join international networks to reach more of the world. Respected networks set strict standards that members must meet to stay in, which helps importers and exporters find forwarders they can trust. Sneddens is a member of the GLA and GFP (Global Forwarding Partners) networks, giving us vetted partners in the countries our customers trade with. See the countries we trade with.
Bonus fact: shipping containers come in standard sizes
The freight forwarding industry runs on standard containers. Most cargo travels in 20-foot or 40-foot steel containers, and container shipping capacity is measured in TEU, short for twenty-foot equivalent units. A 40-foot container counts as two TEU. Standard sizes mean the same box can move from ship to truck to rail without the cargo being unpacked, which is a big part of why sea freight is so efficient.
There are also specialised containers: high cubes for extra height, refrigerated reefers for chilled and frozen goods, open tops for tall cargo and flat racks for machinery. Choosing the right container affects both cost and how safely your goods travel. See our container dimensions guide for the specifications.
Getting started in the freight forwarding industry
There is plenty more to learn, from customs clearance to trade terms. Our glossary of freight terms and Incoterms guide are good places to start. If your team works in freight, The Training Team, the dedicated training arm of Sneddens, runs freight forwarding courses covering the fundamentals.
Ready to ship? Sneddens Global Logistics will walk you through the process so you avoid costly mistakes. Call 0800 76 33 33 or request a free quote.
Sources: UNCTAD, Review of Maritime Transport; Rose George, Ninety Percent of Everything (2013).