Port-to-port shipping refers to shipping containerized goods from port of origin to the port of destination and is often considered to be the most expensive part of the shipping process due to the volatility shipping lines often face while at sea. Port-to-port shipping is considered as a single-mode form of transportation and thus, does not include pre-carriage and/or on-carriage transportation services.
Related: East and West Coast Port Congestion and Equipment Shortages
Door-to-Door vs. Port-to-Port Shipping
If additional services are needed such as cargo transportation to a warehouse, other final mile
destination or to the port of origin itself, door-to-door shipping may be required instead of port-to-port shipping. Port-to-port shipments are usually recommended for experienced shippers who have the knowledge and expertise to handle the other aspects of the shipping process. This includes being able to manage documentation, clear customs at origin and destination, arrange for inland transportation and warehousing.
What Services are Included in Port-to-Port Shipping?
Port-to-port shipping includes transportation costs from port of origin to port of destination. The costs typically include the ocean freight rate, that is, the rate at which the cargo is to be transported and a container rental which covers the rental of the shipping container for the transportation. In addition, a security fee which is charged by ports for maritime security purposes is also included. Other port-to-port services are time to load and unload the containers, cargo tracking, issuance of documents such as the Bill of Lading and any document submission fees. There also may be origin or destination handling charges depending on countries.
What Factors Should You Consider When Shipping Port-to-Port?
Local charges
Port-to-port charges may or may not include local handling charges at origin and/or destination. These potential extra charges may include the Bill of Lading release fee, wharfage and port charges.
Related: Healing the Supply Chain
Cargo insurance
Cargo insurance is not included in port-to-port shipping. While all shipping carriers are legally required to carry carrier liability for all shipments transported, this provides only minimal coverage and is usually not enough to cover shippers’ losses.
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Customs clearance
Proper paperwork and documents must be filed to customs authorities at origin and destination. This process is generally not included in port-to-port shipping rates. Documentation can vary significantly from country to country. To avoid potential problems, it is usually best to hire a customs agent or freight forwarder to handle and submit all paperwork.
Port schedule
Port-to-port shipping schedules depend on many factors. These range from carriers’ schedule availability, type of shipment, ports of origin and destination, and whether full-container-loads (FCL) or less-than-container-loads are being shipped.
Inland transportation
Depending on the origin location and final mile location of the shipment, arrangement for inland transportation may be necessary. This may include trucking services, rail services, or a combination of both. Instead of port-to-port shipping services, door-to-door shipping services may be a better solution if inland transportation is needed.
Related: West Coast Port Congestion
Schedules
Because pre- or on-carriage services are not included in port-to-port shipping, shippers will be in charge of making sure their shipment is delivered to the origin port in time to make the sail date and picked up from the port of destination upon arrival to avoid delay charges such as demurrage.
When arranging the drop off and pick up, check the port authority’s schedule and hours of service to avoid any delays. Also, be aware of any changes in port or terminal schedules due to public holidays or possible port workers’ strikes.
Summary
Port-to-port transport can be profitable for certain shippers. Even though the pre-carriage and on-carriage must be arranged by the shipper, shippers with the know-how, as well as their own means of transport or forwarding equipment can achieve a profitable success.
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