People inside a logistics warehouse

How to Maximise Your Returns When Using Marine Transportation

In recent times, there has been an increase in international trade, thanks to legislation changes. To this end, most businesses are opting to shop overseas where the prices are generally lower for the same products, they get at local supply stores. These changes have made an investment in marine transportation an essential element for companies that want to maximise profits.

One element that determines profits when using marine transport is the freight demurrage and defence insurance. Demurrage denotes a charge shipping line will levy an importer if they do not unpack a shipping container and move it out of port within an allowed timeframe. While this might sound like a few dollars’ worth of fines, it generally runs into millions of shillings and has led most people to abandon their cargo at the port. The demurrage and defence insurance will cover this eventuality should it affect your shipment because of the elements covered by an insurer. The following are the other ways you can use to lower your marine shipping expenses.

Match the Shipping Service to Your Load

There are multiple services offered by marine shipping companies. The two leading options include full container loads (FCL) and less than container load (LCL). If you will be shipping more than eight pallets, it is ideal for getting a twenty or forty-foot container dedicated to your shipment in an FCL arrangement. If, however, you want to ship a pallet or two, the best choice is the LCL. This allows you to consolidate your cargo with that of other shippers and only pay for your goods’ volume.

ship carrying freight containers

Opt for Pallet Packaging

Your goods can be shipped as palletised or loose cargo. The best choice to maximise the use of space in your container is pallet packaging. This will reduce your cargo’s transportations costs, guarantee the efficient handling of your cargo, and reduce the risk of losing one or two pieces from your shipment. There are two pallet types used in marine transport, including euro (. 8×1.2m) and standard (1×1.2m) pallets.


Free onboard (FOB) and cost, insurance and freight (CIF) refer to international shipping agreements. In CIF, the seller handles your shipment until it reaches your doorstep. While this sounds convenient, the seller uses their preferred shipping company and passes all transport expenses to you. In FOB, the cheaper of the two, the seller only ensures your shipment is loaded onto your chosen ship. This means you can negotiate favorable shipping rates with the shipper.

Invest in Several Marine Insurance Types

This might seem counterintuitive seeing as you are trying to minimise your shipping costs. Without various forms of marine insurance, however, you will run into considerable loses if anything affects your cargo in transit. Provided you are using FOB, do not forget to talk to a marine insurer on the best insurance options for your shipment.

With the above tactics, you can guarantee maximum profits when shipping your company’s inventory from abroad. In the past, businesses steered clear of marine transport, believing it was painfully slow. Thankfully, nowadays, technology has improved in the marine sector, and shipping is way faster than you might think.

Scroll to Top