International Carriage of Goods by Sea

Despite technological change, sea remains the primary mode of international carriage. Only around 4% of international consignments travel by air freight and approximately 13% by road or rail; the remainder travel by sea.

The nature and size of cargo determine both the transport mode and the contractual arrangement. Transporting coal, for example, may require the entire capacity of a large ship, involving a voyage charterparty for a single voyage from port of loading to port of delivery. When cargo volumes require multiple shipments, a contract of affreightment is used to cover a series of shipments.

Smaller shipments, such as a single container, are transported under a bill of lading or a sea waybill. Container ships carry cargo for many different customers under separate contracts of carriage and operate on fixed routes between designated ports, known as liner services. Feeder services operate on shorter routes, linking smaller ports to major liner service hubs.

Carriers may also be contracted to transport goods to a specific destination nominated by the seller or buyer, outside any fixed route. These vessels, which go wherever contracted, operate in what is known as the ‘tramp’ trade.