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5 Benefits of Choosing Professional Sea Freight Services

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The value of worldwide seaborne trade has increased over the years. Moreover, Statista reported that the seaborne trade’s capacity of container ships was nearly ten times higher in 2016 compared to when it was back in 1990. The projected global number of containerships is predicted to be more than 5,500 by the end of December next year.

While shipping goods via the sea route may take the longest time compared to the other modes of transportation, Sea Freight Services have several key benefits over other freight forwarders. Here are five of the advantages of choosing sea or ocean freight services to manage your import or export business.

Offer a safe mode for long-distance goods transportation

When it comes to transporting goods over long distances, ocean freight offers the best and most reliable shipping mode. With sea freight services, companies can obtain the additional benefit of having their goods transported overseas under more thorough supervision than the standard services.

Moreover, compared to road transportation, shipping cargo through the ocean minimizes the chances of the goods getting damaged or lost.

Relatively inexpensive

Ocean freight is by far the cheapest option of transportation mode, compared to other types of cargo transportation, such as air freight. Cutting down on transportation costs is a smart way to increase the company’s revenue. Money saved from freight expenditure can be directed towards another essential things contributing to the success of the company.

Lowering freight costs also allows a company to sell goods at a lower price point. This is apart from helping the company to stay ahead of the competition. So in a sense, sea forwarding can boost profitability.

Moreover, some goods are charged a more expensive fee if transported by other means than the sea.

Eco-friendly

Companies with supply chain requirements are aware of the impact of freight forwarding service providers on the environment. With the degradation of our natural resources, it is always imperative to try to choose a greener option for cargo shipping.

Likewise, consumers are more informed of environmental concerns and may look for companies that adopt eco-friendly practices in their business.

Since logistics is an essential component of the operation of every business, companies need to watch for their carbon footprint caused by the transportation of goods. Choosing ocean freight services leads to lower harmful greenhouse gas emissions.

Other freight forwarding services, on the other hand, such as air freight, not only will cost more expensive, it also releases a considerable amount of toxic gasses.

Can ship large cargo volume and size

Space availability is a significant concern for most businesses, especially with bulky goods. Fortunately, Sea Freight Services offer great flexibility when it comes to size, dimension, and cargo weight.

On the other hand, freight forwarding services like air freight has a strict policy with regards to the measurement of the goods and may impose certain limitations on particular products.

Better Documentation

International transportation requires plenty of documentation and paperwork. This, in itself,  can be quite challenging for most businesses, especially with the time management and tracking of appropriate documents.

Companies that choose to ship their goods via sea freight allow their documentation team to manage the complicated paper works. This ensures that the shipment is free of hassle.

When you need to ship a large number of goods, sea freight would be the best choice. Aside from offering an efficient and timely mode of transportation, sea freight service is cost-effective, eco-friendly, and can accommodate almost any type of cargo.

Give Your Moving Business the Right Edge with a Freight Factoring Service

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Freight invoice factoring is one of the golden buzz words in the shipping industry for managing cash flow effectively. Not only does the service provide your business with the right solutions, but it is one crucial step to getting payment discounts within a short period.

Many moving businesses, regardless of their size, find a freight factoring service beneficial because they reap the rewards for having back-office support. These companies primarily function to provide operational backing and immediate cash flow assistance.

Not only will freight factoring organize your entire operations, but the service also provides your company with the efficiency to manage billings and collections without exerting too much effort.

Some Important reasons why you should consider Factoring

In today’s business environment, where efficiency spells the difference between success and failure, finding freight factoring for your moving company spells the difference. Consider that OTR Capital is all about sustainability and the reliability to manage your cash flow.

Freight factoring is all about being prepared for some eventual necessities your company might experience. Take, for example, repairs, fuel consumption tracking, and payroll checks.

These are essential operational expenditures your company needs to manage well. By selling your invoices upfront, you are guaranteed full support for your billing and collection needs. A freight factoring service is also one right way of filing cash flow gaps, which often become a significant operational hindrance for transport companies. 

By having your invoices factored, your company expenses are covered during eventual needs. It is one of the most effective business financings for any shipping company as they get the needed monetary backing for slow-paying customers and freight bills.

Some of the reasons for considering freight factoring include

  • Get a comprehensive commercial creditworthiness check for your prospective shipper or client.
  • Quickly increase your customer base.
  • Get access to better commercial financing and cash flow so your company can take more loads.

Focus on your core Operational Needs

Late-paying shippers and customers are often a stumbling block for most trucking service providers. In most instances, this means the inadequacy of financing other trucks and get them the needed funding.

This is what freight bill factoring tries to address, allowing trucking personnel to get a sustainable monetary backing to finance their operational needs. The primary consideration with freight factoring, though, is getting a reliable partner who seeks the betterment not only of their company, but also yours.

Factoring removes the burden of collecting payments from late payers. And once payments are settled, they are considered closed. This tactic removes all the pains of dealing with your customers for the entirety of their invoice.

It is a crucial element of sustaining your company’s momentum and removing all the unnecessary tasks that often becomes a drudgery to most trucking companies. Nascent companies who are trying to cut their expenses can also benefit from the services provided.

Extend your resources by removing unnecessary Collection Tasks

One concept of eradicating unwanted collection pains and headaches is to have you outsource your receivables to reliable freight factoring companies. This process allows you to get immediate payment for the outstanding invoices related to your completed works. It brings your working capital back so you can move on with your operations.

Common Carrier

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A “Common Carrier” is one who holds himself out as ready for hire for transport of goods of all persons from one place to another, by land, sea or air, for reward. He must do his work as a business and not as casual occupation.

Section 2 of the carriers Act 1865 defines a “Common Carrier” as “a person, other than Government, engaged in the business of transporting for hire, property from places place by land or inland navigation, for all persons indiscriminately”.

Kinds of Carrier

  • Common Carrier
  • Gratuitous Carrier
  • Private Carrier

Common Carrier

A common carrier owes a public duty to transport goods upon offer of payment. He is liable in damages for refusal to carry goods upon an offer of hire; however, common carriers may rightfully refuse to carry goods under proper circumstances.

Gratuitous Carrier

In this kind of carrier one person undertakes to carry passengers or goods without any charge. If a “Gratuitous Carrier” refuses to accept goods or passengers, no action may be taken against him. But when he gives his consent to cary goods or passengers, he will be liable in damages.

Private Carrier

Where a person carries goods occasionally or by special agreement, he is known as a Private Carrier. He has the responsibility of a bailee and negligence must be proved to make him liable for loss or damage.

At present many of the larger industrial and commercial concerns transport their merchandise by means of their trucks or vans. They are a private carrier.

Where a private carrier accepts goods under individual contracts, he is called a contract carrier.

Common CarrierPrivate Carrier
Those who carry goods are passengers for all and sundry who choose to employ them and are willing to pay the reasonable rewardThose who undertake to supply transportation in special instances and upon special arrangement
The common carrier is controlled under the carrier Act 1865Its activities are governed by contract Act 1872
He is liable in damages for refusal to carry goods upon an offer to hireHe is not liable in damage in case of refusal for transporting
Where he undertakes by special agreement to carry that which he is not under an obligation to carry, he becomes a private carrier as to those goodsThis carrier is not a common carrier for another carrier
As he renders valuable services for all groups of society, its business is to be affected with a public interestHe carries goods for special group of persons by special contract
A common carrier must do his work as a regular business and not as a casual occupationPrivate carrier perform his services occasionally and not as a regular business
It has to serve all indiscriminately and no right to reject the goods offered for conveyancePrivate carrier can discriminate. He reserves the right to reject goods

Duties of Common Carrier

Acceptance for Carriage

He is bound to carry all goods offered to him for carriage by persons willing to pay his hire.

Deviation

A carrier must follow his customary route and must not deviate from it without cause.

Goods Delivered in Time

The carrier must deliver the goods within the time expressed in the contract for delivery or within a reasonable time. He is liable for any delay caused by his negligence.

Goods Delivered to Right Person

He has a duty to deliver the goods to the right person and is liable if he delivers them to another.

Safely Transportation

He must carry the goods safely and deliver them safely to their destination, which may be stipulated in the agreement.

Notice for Declaration and Extra Charges

The carrier must serve a notice where the goods are received drawing attention to the need for a declaration a giving the scale of extra charges, and must give a receipt for the extra charges.

Rights of Carriers 

Right of Lien

Common carrier’s lien entitles a carrier to retain goods delivered for carriage until freight and storage charges are paid.

Right to recover Expenses

He has a right to recover reasonable expenses incurred by him as a result of the consignee’s refusal to take delivery.

Right of Action

Carrier has a right of action for recovery of the goods or their value from the person who wrongfully accepted the goods.

Right to Recover the Cost of Carriage

He is entitled to demand the cost of carriage when the goods are delivered to him and if this is not paid, he may law fully refuse to deliver them.

Right of Refusal

He can refuse to carry goods when

  • There is no room for the goods in this conveyance.
  • The goods are not of the type that the carrier transports;
  • The goods are not properly packed;
  • The goods are of dangerous nature;
  • The consignor is not prepared to pay reasonable charges;
  • The carriage involves a rout on which he does not usually operate.

Right of Selling Goods

After giving notice to the consignee he may sell perishable goods.

Right in case of Non Disclosure

He is entitled to recover damages or loss from consignor caused to him due to nondisclosure of any necessary facts in the goods.

Right of Limitation of Liability

Common carrier may also, by a special contract with the consignor, limit his liability in any particular way.

Liabilities of Common Carriers

Liability for Delay

The common carrier will be liable for any damage caused by its delay.

Liability for Delivery

The carrier will be liable for an erroneous delivery regardless of the reason for misdelivery.

Liability for the safety of Goods

He is entirely responsible for the safety of the goods carried except when the loss or damage arises from:

  • An act of God
  • Inherent vice in the goods themselves.
  • Acts of the enemies of the state.
  • The consignor’s own fault.
  • An acts of Public Authorities.

Liability for Injury

He is liable for injury to the passenger’s person only if guilty of negligence.

Liability for Scheduled Goods

Common carrier is not liable for loss or damage to specific kind of goods shown in the schedule such as gold, silver currency notes and precious stones etc, exceeding USD. 100 in value, unless its value and description are properly disclosed to him before.