Ocean transport has been the largest freight carrier throughout recorded history. Although the importance of sea travel for passengers has decreased due to the rise of aviation (it is still popular for short trips and pleasure cruises), it remains important for transporting goods. Freight transport by water is cheaper than transport by air. Sea or ocean transport can be over any distance - by boat, ship, sailboat, or barge, over oceans and lakes, through canals, or along rivers. Virtually any material that can be moved by water. Despite these benefits, ocean transport is less practical when speedy delivery is paramount.
Regarding ocean transport, 'general cargo' refers to goods packaged in boxes, cases, pallets, and barrels. In the 1960s, a "containerization" revolution altered how cargo was moved overseas. When a cargo is carried in more than one mode, it is said to be intermodal or co-modal.
Intermodal freight transport involves the transportation of freight in an intermodal container or vehicle, using multiple modes of transport (rail, ship, and truck), without handling the freight itself when changing modes. The method reduces cargo handling, improves security, reduces damages and losses, and allows freight to be transported faster.
Planning an ocean freight movement differs from planning a domestic freight movement insofar as the resources are often more scarce and tend to operate on fixed schedules. Schedules in TM can mimic the departure days, times, and frequency of ocean-going vessels.
One step in the ocean-bound process that is different from the domestic scenario is the use of a booking. The freight booking is intended to reserve capacity on a vessel (or aircraft). The difference between a (ocean) freight booking and a freight order is that a freight booking is equivalent to buying an airplane ticket; that is, you book capacity; a freight order is equivalent to checking in baggage and having it put aboard the plane.
SOLAS – Convention for the Safety of Live at Sea
Starting July 1, 2016, the International Maritime Organization (IMO) will enforce the Safety of Life at Sea Convention (SOLAS) requirements to verify the gross mass of packed containers.
"A packed container will not be allowed to be loaded on board vessels to which the SOLAS Convention applies unless the Verified Gross Mass (VGM) of the container has been provided to the ship’s master or his representative and to the terminal or its representative sufficiently in advance to allow for the edition of the loading plan."
VGM must be auditable.
Definitions and Explanations:
VGM (Verified Gross Mass) = The total weight of a container, including the weight of goods, packing material, and container tare.
The following two methods are allowed to determine the VGM:
- Weighing of the packed container
- Sum of weighted packages and cargo items (including the mass of pallets, dunnage, and other packing and securing material to be packed in the container) plus tare mass of the container
The VGM must be included in the shipping instructions. The company that has to report the VGM data to the carrier/terminal depends on the scenario. The verified gross mass of a packed container should be provided to the next party taking custody of the container.
Several use cases/processes are supported in SAP TM.
Watch the simulation Create an ocean freight booking to learn about the content of an ocean freight booking and how to create one.