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What is liner shipping? Know its meaning, advantages, and cost

Liner shipping is the mode of transporting goods by large ocean ships that move through regular routes on fixed schedules. Learn more about it in this blog.

A businessman and businesswoman are shaking hands in front of a world map with highlighted trade routes.

Transporting products over long distances is a major concern for exporters, as standard shipping methods can lead to delays and unmet customer expectations. Liner shipping, with regular schedules and set routes, offers a reliable solution, ensuring timely and safe delivery of goods to global consumers. In this blog post, we will discuss what liner shipping is, its pros and cons, cost considerations, and how to book a liner service.

What is liner shipping service?

Liner shipping or liner service is a type of freight transportation service where cargo is transported on large ships between specific ports on fixed schedules.¹The ships that operate these fixed routes are called liners. Liner companies, which provide these services, employ large, purpose-built vessels, such as container vessels, for transporting almost all types of cargo in standardized container forms.

What kind of vessels offer liner shipping services?

Liner shipping utilizes a variety of vessels to transport goods across oceans. Each type of vessel is designed to handle specific types of cargo, ensuring efficiency and safety in the transport process. Some common vessel types used in liner shipping services are as follows:

1. Container ships

These are the most widely used vessels in liner shipping and carry most of the world’s goods efficiently.

2. Bulk carriers

Bulk carriers transport raw materials like coal and iron ore in large quantities.

3. Tankers

Tankers specialize in carrying oil, petroleum products, and chemicals.

4. Specialist ships

Specialist ships include vessels like research ships and icebreakers for unique tasks.²

What are the advantages of liner shipping service?

Liner shipping offers several benefits for any business involved in international trade. Some key advantages are as follows:

Cost-effectiveness:
When cargo needs to be transported over large distances, liner shipping can be relatively cheaper than other modes of transportation. Container ships reduce costs through their large size, which boosts operational scale, and by using standardized containers, which lower port handling fees.

Reliability:
Liner services are structured around fixed schedules, providing reliable delivery timelines and reduced scope for sudden delays.

Safety and security:
Liner companies maintain stringent safety protocols, ensuring secure handling of cargo and providing shippers with peace of mind for their valuable goods.

Flexibility:
Liner services can accommodate various cargo types, from dry goods to perishable and hazardous materials, provided the necessary documentation is in order.

Global reach:
Liner shipping connects numerous global ports, supporting international trade and helping companies reach a broader customer base.³

What are the disadvantages of liner shipping service?

Although there are many benefits to liner shipping, it's vital to take into account some potential disadvantages:

1. Limited control

Liner services operate on fixed schedules and routes. This limits a shipper's control, which may not suit organizations with specific timing or routing needs.

2. Potential delays

Liner shipping's scheduled arrivals can be disrupted by weather or port congestion, causing occasional delays that impact supply chains.⁴

Alternatives to liner service: Tramp shipping vs liner shipping

Tramp shipping refers to vessels that operate without a fixed schedule or set routes, transporting cargo based on demand. These ships are typically hired for irregular, bulk shipments. Tramp shipping can be a suitable alternative to liner shipping for companies that need more flexibility or supply services to less reachable markets. Here are some key differences between the two:

What are the costs associated with international liner services?

The costs of using international liner services can vary widely based on several factors. Some of these are as follows:

1. Fuel costs:

Fluctuations in fuel prices directly impact ocean freight rates, as increased fuel costs raise shipping expenses.

2. Supply and demand:

The balance between shipping capacity and cargo volume affects rates; high demand or low capacity leads to increased freight costs.

3. Seasonal variations:

Seasonal changes, such as peak shopping periods, can drive up rates due to higher shipping volumes and increased demand for space.

4. Global economic influences:

Economic factors, such as trade policies and economic growth, can affect shipping rates by influencing demand and supply dynamics.⁶

5. Port delays:

Congestion at ports can cause delays and additional costs, influencing overall shipping rates.

6. Shipping routes:

Longer or less efficient routes may result in higher freight rates due to increased travel time and operational costs.

7. Regulatory changes:

Changes in shipping regulations or compliance requirements can lead to increased costs.

How to book a liner shipping service?

The following is an overview of the process exporters can follow to book a liner shipping service:

Determine your shipping needs: Assess the type, volume, and destination of your cargo. This will help you choose a liner service that meets your requirements.

Choose a reliable shipping line: Research and select a reputable shipping line company with a strong track record for reliability and service quality.

Get a quote: Request a detailed quote from the chosen shipping line, including all associated costs such as freight, handling, and any additional fees.

Prepare shipping documentation: Ensure all necessary documents, such as bills of lading, customs declarations, and packing lists, are accurately completed and ready.

Book the shipment: Confirm your booking with the shipping line, providing all required details and documentation to secure your cargo space.

Track the shipment: Use the shipping line’s tracking tools to monitor your cargo’s progress and stay updated on its status throughout the journey.

Coordinate delivery: Arrange for the collection or delivery of your cargo upon arrival at the destination port, ensuring all necessary procedures are followed.⁷

Conclusion

Liner shipping plays a vital role in international supply chain logistics, offering effective, cost-efficient transport with reliable schedules and extensive networks. These services can be especially valuable for e-commerce exporters transporting high-volumes of cargo from one destination to another. For smooth and hassle-free international shipping, Indian e-commerce exporters can also opt for cost-effective shipping solutions like Fulfillment by Amazon (FBA).

Learn more about FBA here

Amazon Global Selling: Easy e-commerce exports and hassle-free shipping

If you are a business owner and you want to sell your products to the world, Amazon Global Selling enables you to list and sell ‘Made in India’ products on 18 Amazon global marketplaces. As an e-commerce export program, Amazon Global Selling provides support and guidance at every step of your export journey, connecting you to Amazon’s Service Provider Network for tailored compliance, payments, and logistics support.

Registered sellers can choose to ship their products by themselves through Merchant Fulfilled Network (MFN) or they can opt for fulfilment by Amazon (FBA) and outsource order fulfilment to Amazon including packing, storage, delivery, and returns. Amazon Global Selling simplifies the process of international shipping to the world, helping businesses navigate customs and reach a vast audience.

Frequently Asked Questions

How reliable are liner services for international shipping?

Liner services can be reliable since they have a predetermined schedule and cover specific routes, providing structure to businesses. This predictability is one of the principal reasons liner shipping is a favored mode of sea transport.

Can liner services be customized for specific shipping needs?

While liner services follow strict schedules, some carriers can accommodate special requirements, such as the use of specific containers, for instance, or other extra services.

How can I track my shipment with a liner service?

Almost all liner service providers provide tracking services where shippers can track the progress of their shipment online. This transparency improves the credibility and effectiveness of the shipping process.⁹

Published on September 30, 2024.

Sources:

1. https://tassgroup.com/shipping/liner-shipping-and-its-advantages/#:~:text=Liner%20shipping%20is%20the%20process,from%20the%20ports%20of%20call.

2. https://tassgroup.com/shipping/liner-shipping-and-its-advantages/#:~:text=Liner%20shipping%20is%20the%20process,from%20the%20ports%20of%20call

3. https://tassgroup.com/shipping/liner-shipping-and-its-advantages/#:~:text=Liner%20shipping%20is%20the%20process,from%20the%20ports%20of%20call

4. https://getawaytips.azcentral.com/advantages-disadvantages-of-liners-tramps-12380154.html

5. https://www.ttspl.in/liner-vs-tramp-service/

6. https://www.citrusfreight.com/resource/blog/what-are-the-factors-that-affect-sea-freight-rates

7. https://www.container-xchange.com/blog/how-to-book-a-container-in-shipping/

8. https://wefreight.com/diving-deep-into-liner-vs-tramp-shipping-services-a-comprehensive-analysis/

9. https://www.cogoport.com/en-IN/blogs/best-ways-to-track-your-international-cargo

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