Importing
Ocean Cargo
Understanding the Process:
Stages of Freighting Ocean Cargo
Understanding the Paperwork:
Importer Security Filings for Ocean Cargo
Ocean cargo importations are also required to file an additional type of entry filing, called an Importer Security Filing. (ISF) These may be filed by freight agents, including customs brokerages, which describe the contents of your shipment and the entities involved with the transaction.
Ocean cargo importers should check with their freight forwarder or ocean carrier contact to verify:
"Is the ISF included by origin, or do I need to file the ISF?
ISFs must be filed at least 24 hours before ocean cargo is laden onto a U.S.-bound vessel on its U.S. voyage. Failure to file the ISF timely or correctly exposes the Importer of Record (IoR) to potential fines from CBP. If the cargo approaches the U.S. port without an ISF on file, cargo holds and inspections are highly probable, and only resolved by starting with an ISF filing.
The minimum fine is five thousand dollars ($5,000) per violation, and can be assessed as high as fifty thousand dollars ($50,000) per violation. These fines are no joke, but ISF issues are not necessarily punished with fines. Our best practice is to file the ISF 48-72 hours beforehand, or as soon as the ISF information is available. ISF issues happen, and we are well experienced with correcting them. We also find that correcting these issues as soon as possible usually avoids penalties all together. (We do not speak for CBP, as they are the judge here.)
Don't let the $5,000 fine rhetoric intimidate your judgment, but we should do everything we can to file timely and correct ISFs.
Pilotfisch is happy to file your ISF, and part of our logistics management includes verifying the ISF status prior to import activities.
For more about ISFs and their requirements, please check out our dedicated page:
Understanding the Paperwork:
Import Documentation for Ocean Cargo
All ocean cargo importations are required to include four major components, with additional requirements depending on the goods being transported. Each ocean cargo shipment must start with:
1. Commercial Invoice / Receipt of Purchase
2. Packing List / Content Details
3. Bill of Lading (or House Bill of Lading)
4. Ocean Port Arrival Notice
Each of the four requirements must have at least one document as evidence, but the documentation should accurately reflect the physical shipment. If for example a shipment includes contents sourced from multiple purchases, each corresponding invoice or receipt should be included to document the whole.
For more about import documentation requirements, please check out our dedicated page:
Understanding the Dynamic:
Insights on Ocean Cargo
Ocean cargo shipments are usually used for high density goods, cost sensitivity, and goods with low time sensitivity.
According to the 2020 data from The International Council of Clean Transportation, steamship vessels are among the highest cargo-fuel efficiency vehicles. They rank at about 576 ton-miles per gallon; meaning that for each gallon of fuel, 1 ton of cargo could go 576 miles, or 576 tons could go 1 mile equivalence aboard the vessel. Resultantly, the cost of this mode of transport is usually the lowest relative freighting method.
Timing seems to be the prohibitive factor for ocean cargo shipments, where even in environmentally controlled containers spoilage timing would prevent use of the method. Ocean cargo is very diverse, and is the most common method for freighting. Importers and exporters take advantage of the low relative fuel costs to send their goods aboard, whether part of a consolidated container, full containers, breakbulk project cargo secured on deck, or bulk material loosely loaded. Ocean cargo is dependable in its steaming timetable, but there is an element of disruption as vessels wait their turn for a berth to unload; subject to the lightermen, stevedores and longshoremen. Strikes, holidays, weather, and trucker availability can make the difference between success and costly incidentals. Additionally, ocean cargo is among the higher risk environments for cargo security and theft. While piracy is a non-zero element, the many touchpoints and supporting entities mean there are that many more potential points for exposure.
In most cases, the criticality depends on finding a good container or consolidated container deal, and then finding the best combination of carriers to unify your shipment into a secure and effective supply chain as close as possible to your destination. In Pilotfisch's experience, importers get a much better deal on the US inland movements from freight forwarders when booked together with the international segment.
Unless timing or spoilage is a significant issue, your cargo may be best suited to become ocean freight.
Understanding Next Steps:
Let's Work Together on Ocean Cargo
Pilotfisch Solutions is well experienced with importing ocean cargo, and we have the solutions experience for spectrum of potential issues in ocean cargo. In addition to the compliance activities involved with your ocean cargo's customs clearance, we continue to manage your shipment's logistics so that parasitic costs are avoided, and unavoidable holds are mitigated. Our success depends upon your shipments' success, and we want your ocean cargo shipment to succeed!