In container shipping, ships are double-hulled with wide cargo holds. Containers can be stored both on deck and in the cargo hold. The capacity of a container ship is defined using the term TEU (Twenty-foot Unit). The capacity of modern container ships is 14,000 TEUs and above. As of April 2024, the world’s largest vessel is the MSC IRINA, with a capacity of 24,346 TEUs. In container shipping, the ships that typically leave from the Gulf Coast have a capacity of 18,000 to 20,000 TEUs, so, they can only carry 9,000 to 10,000 40-foot containers. Considering the increasing trends and high demand, it can be said that these ships are actually small enough to be filled in a short time.
So, how do we secure and guarantee your space on these vessels?
The secured space on the vessels is called a “Booking.” Almost every carrier has websites to facilitate booking, and those that do not can be contacted via email. This process is similar to purchasing an airline ticket. However, one must be familiar with port names and take close attention. No one wants to ship their cargo to a different country and increase their costs. If the requested space on the vessel is accepted by the carrier, a “Booking Confirmation” will be issued.
The deadlines (cut-off dates) listed on the confirmation are crucial, and exporters are expected to arrange their operational processes with these dates. Otherwise, the secured space on the vessels may be lost, and if there are no spaces available on upcoming vessels, your costs may increase.
Below are the key cut-off dates you should be aware of.
- ERD (Earliest Receiving Date): This is the first date on which you can bring an empty container to the port after loading. A container that enters the port between ERD and Port cut off dates cannot incur costs to the exporter due to subsequent operational issues like being rolled to the next vessel or extended departure times.
- Doc Cut-off Date: This is the final date by which all necessary and mandatory details regarding the loaded cargo—such as what it is, where it’s going, who it’s for, its weight, dimensions, and value—must be documented and provided to the carrier. All information must be submitted by this date; otherwise, the loss of space on the vessel must be considered. Even if a container is successfully loaded and delivered on time, if the required information is not provided by the Doc cut-off, the booking will roll to the next vessel, incurring costs.
- Port Cut-off Date: This is the last date for a loaded container to be transported on the booked vessel and to be included in that vessel’s loading list. If this date is missed, it is certain that the booking will roll to the next vessel, leading to additional per diem (detention) charges.
Work with a shipping professional to avoid unnecessary issues.
A common mistake made by exporters is to overlook the doc cut-off and base their loading solely on the port cut-off, resulting in lost rights on the vessel and associated costs. Given that all these issues are part of the routine challenges faced by freight forwarders, seeking support from a specialized forwarding firm for your operations and booking processes can protect you from excessive costs in the long term. Carrier companies keep the right to notify any changes to dates and vessels up to the last minute, which means your shipment may still be delayed or rolled to the next vessel, even if everything is handled perfectly. In such cases, the shipper has the right to dispute any incurred costs.
