What is Sea Freight? A Complete Guide for Indian Importers & E-commerce Sellers

If you're an Indian importer or e-commerce seller sourcing products from China or other countries, understanding sea freight is a must. It's one of the most affordable ways to ship goods internationally, especially in bulk.

But it can also feel confusing if you're unaware of customs paperwork, choosing between FCL and LCL, handling port delays, and figuring out costs; there’s a lot to manage.

This guide is here to simplify all of that. We’ll walk you through how sea freight works, covering everything from booking your shipment to clearing customs in India. You’ll learn what documents you need, how much it costs, what risks to watch out for, and how to save both time and money.

Whether you're shipping to your Amazon FBA warehouse or stocking up for your D2C brand, this guide will help you make smarter, more confident decisions when importing goods by sea.

What is Sea Freight?

Sea freight is also referred to as ocean freight, the method of transporting goods internationally via large cargo vessels. It remains the backbone of global trade, accounting for over 80% of the world’s international shipments by volume.

For Indian importers and e-commerce sellers, especially those sourcing from China, Vietnam, or Southeast Asia, sea freight is the most cost-efficient and scalable option.

When you import from China to India, shipments typically move under one of two categories:

• Full Container Load (FCL):

In this mode, the entire container is reserved for your goods, regardless of whether it is fully utilized. FCL is best suited for bulk orders, fragile items, or shipments requiring added security and less handling.

• Less than Container Load (LCL):

With LCL, your cargo shares space in a container with shipments from other businesses. It’s ideal for smaller volumes, early-stage inventory testing, or startups managing tight budgets.

Now you thought, why is air freight not a far better option than sea freight?

The answer is a cost-effective shipping method.

Air freight is faster, but it comes at a significantly higher per-kilogram cost. Sea freight offers better economies of scale, particularly for Indian e-commerce brands managing large and repeat shipments.

In short, if your priority is cost savings, the ability to move bulk inventory, and access to global sourcing, sea freight provides the most strategic value for Indian businesses expanding their import operations.

How the Sea Freight Process Works?

Contrary to popular belief, shipping goods via sea freight is not as simple as loading a container onto a ship and waiting for it to arrive. It's a multi-stage logistics operation that requires careful planning, coordination, documentation, and compliance at every step.

Whether you're importing from China to India or another global sourcing destination, here's a breakdown of the standard sea freight shipping process:

Step 1. Coordination with Your Supplier

The process begins at the factory or supplier’s location. Once your order is ready, the supplier must notify you (or your freight forwarder) with a confirmed cargo-ready date.

This step is important. Any miscommunication or delay here can disrupt your entire shipping schedule, including container booking, customs filing, and vessel departure.

Step 2. Booking a Freight Forwarder or Shipping Line

At this stage, you need to decide whether to:

• Book directly with a shipping line (only recommended if you’re experienced and moving large volumes), or
• Work with a freight forwarder who acts as your logistics coordinator.

A freight forwarder handles:

• Carrier selection and rate negotiation
• Port operations and export documentation
• Consolidation for LCL shipments
• Coordination with customs agents in both countries

For Indian importers new to international logistics, partnering with a reliable freight forwarder is the smarter, low-risk option.

Don’t confuse freight forwarding with the direct shipping method. They both have different aspects. But here, choosing a freight forwarding can work for you as you opted for sea freight shipping to get your goods enter to India.

3. Packing and Container Stuffing

Once the goods are ready, they’re moved to either:

• A factory location, where packing happens on-site (common for FCL), or
• A consolidation warehouse, especially for LCL shipments.

Proper packaging and container stuffing are essential. Poorly packed cargo is prone to damage during transit due to prolonged motion, container shifting, or humidity. Export-grade packing, pallets, and moisture-resistant wrapping are strongly recommended.

4. Export Customs Clearance in China

Before your goods can legally leave China, they must be cleared through Chinese customs. In other words, customs clearance from Chinawill confirm that your container is ready to go.

Here are the key steps your supplier has to follow:

• Filing the export declaration
• Submitting the commercial invoice, packing list, and contract
• Getting container approval and sealing

This process is usually handled by the supplier or the freight forwarder. However, any errors in product description, HS codes, or missing documents can delay your shipment.

5. Ocean Transit

Once cleared, the container is loaded onto the assigned vessel. The transit time by sea varies depending on the following:

• Port of origin in China (e.g., Shanghai, Guangzhou, Shenzhen)
• Indian destination port (e.g., Nhava Sheva, Mundra, Chennai)

Typical ocean transit times:

• Shanghai → Nhava Sheva: 20–25 days
• Shenzhen → Mundra: 15–20 days
• Guangzhou → Chennai: 18–28 days

Containers are tracked using a Bill of Lading (BL) number provided by your shipping line or forwarder.

6. Arrival at Indian Port

Once the vessel arrives at an Indian port, your container is unloaded and transferred to a Container Freight Station (CFS) or Inland Container Depot (ICD), depending on your location and port policy.

Here, your forwarder or customs broker prepares the shipment for import clearance.

7. Indian Customs Clearance

This is one of the most sensitive and regulated parts of the process: customs clearance in India.

The Indian customs authorities will do:

• Inspect your documents (invoice, packing list, BL, insurance)
• Validate your HS code classification
• Check for undervaluation or restricted items
• Calculate applicable duties and taxes

Any discrepancy, be it wrong product classification, missing documents, or underreporting of value, can result in inspection, demurrage charges, or even penalties.

Hiring a licensed customs broker (CHA) helps smooth clearance and the faster release of your goods.

8. Inland Transport to Your Final Destination

After clearance, the container is moved out of the port and delivered to your final destination, such as:

• Your company’s warehouse
• A third-party logistics (3PL) center
• An Amazon FBA or Flipkart fulfillment center

For e-commerce sellers, it’s smart to choose a logistics partner who can directly deliver to fulfillment centers. This reduces unnecessary handovers, minimizes lead times, and ensures faster stock availability.

What Kind of Documents Are Required for Sea Freight to India?

When it comes to sea freight shipping, documentation isn’t just paperwork. It’s the foundation of a smooth import process. Missing, incorrect, or inconsistent documents are among the most common reasons why containers get held up at Indian ports, leading to delays, penalties, and additional charges.

Whether you're importing a full container load (FCL) or a small LCL shipment from China, the following documents are essential for customs clearance and compliance:

1. Commercial Invoice

This is the official proof of sale between the supplier and importer. It outlines the following:

• Description of goods
• Quantity and unit price
• Total value
• Terms of trade (Incoterms)

Indian Customs uses this document to assess the value of the shipment and calculate duties and taxes.

2. Packing List

The packing list complements the invoice by detailing:

1. Number of boxes or pallets
2. Weight and dimensions
3. Description of each package

It helps customs officials, freight forwarders, and warehouse teams identify and verify the physical contents of your shipment.

3. Bill of Lading (BL)

The Bill of Lading is an important legal document issued by the shipping line or freight forwarder. It confirms that the cargo has been received, loaded, and is in transit. It includes:

• Shipper and consignee details
• Port of loading and destination
• Container number and seal
• Freight terms (prepaid or collect)

The BL also serves as a title of ownership. Without it, you cannot take delivery of your goods at the Indian port.

4. Importer Exporter Code (IEC)

Issued by the Directorate General of Foreign Trade (DGFT), the IEC is mandatory for any individual or company wishing to import goods into India. It must be quoted in all shipping and customs documents.

If you don’t have an IEC, your shipment will not be cleared through Indian customs.

5. Insurance Certificate

While not legally required, an insurance certificate is strongly recommended, especially if you're shipping high-value, fragile, or perishable items.

It provides financial protection in case of:

• Damage in transit
• Loss due to container mishandling
• Theft or water exposure during ocean freight

Marine cargo insurance is usually arranged by the buyer or seller, depending on the trade terms (e.g., CIF or FOB).

6. Payment Proof or Letter of Credit

Depending on your agreed terms with the supplier (TT, LC, or Open Account), you’ll need to provide proof of payment. This may include:

• Bank transfer receipt (for Telegraphic Transfer)
• A Letter of Credit (LC) issued by your bank
• Bank Release Letter, if applicable

These documents may be requested by customs to validate the declared value or by your freight forwarder to release the Bill of Lading.

If you're unsure how to prepare or review your paperwork, consult a professional CHA or an experienced freight partner like iLife Import to handle it on your behalf.

How to Understand Sea Freight Costs for Indian Importers?

The true cost of sea freight is useful for budgeting, pricing, and profit planning. Sea freight charges are not limited to just “shipping.” They involve multiple components across international, port, and inland logistics.
Here’s a clear breakdown of the typical sea freight cost structure for Indian importers:

1. Freight Charges

This is the base ocean freight cost charged by the shipping line or freight forwarder. It depends on:

• Container size (e.g., 20 ft, 40 ft for FCL)
• Shipment volume or weight (for LCL)
• Origin and destination ports
• Market seasonality (rates can spike during peak months)

2. Terminal Handling Charges (THC)

These are the fees for handling containers at the port, both at the origin (e.g., Guangzhou) and the destination port in India (e.g., Nhava Sheva). THC includes container loading/unloading, gate-in/out, and documentation processing at terminals.

3. Port Charges

Additional fees imposed by port authorities include:

• Container storage (after the free period)
• Crane or lift-on/lift-off charges
• Customs scanning and inspection fees

These charges vary by port and cargo type.

4. Duties and Taxes

This is where costs can vary significantly. Indian customs calculates duties based on:

• The declared value in the commercial invoice
• Product classification under the HS Code
• Applicable Basic Customs Duty (BCD), Integrated GST (IGST), and other surcharges

Correct HS code classification is essential to avoid overpayment or penalties.

5. Inland Transport

Once cleared, the cargo needs to be moved from the port to your final destination: your warehouse, fulfillment center, or 3PL facility. This is usually done via:

• Truck (most common)
• Rail (for long-distance inland movement)

Rates depend on distance, cargo type, and vehicle availability.

6. Documentation and Clearance Fees

These include payments to:

• Customs House Agents (CHAs) for filing your import bill of entry
• Shipping line documentation charges
• Port and government charges (e.g., EDI filing fees, GST on services)

Sample Cost Estimate: LCL Shipment from China to India

Let’s assume you’re shipping 5 CBM of LCL cargo from Guangzhou to Mumbai:

Note: Customs duties vary based on the product’s HS code and declared value.

FCL Shipment Cost Range

If you’re importing via FCL (Full Container Load), expect:

• A 20-foot container from China to India: ₹1.2 – ₹1.5 lakh (all-in, excluding duty)
• A 40-foot container: ₹1.8 – ₹2.2 lakh depending on route, season, and inland delivery distance

FCL becomes more cost-efficient per unit when your shipment volume exceeds 15–18 CBM.

Why Choose Sea Freight for a Comfortable Option?

There’s a reason why thousands of Indian businesses rely on sea freight every day:

• Cost-Efficient for Bulk Cargo

When you're moving large volumes, the sea freight cost per kilogram is significantly lower than air or courier services. It allows businesses to maintain competitive margins, especially in price-sensitive markets like e-commerce.

• Ideal for Heavy and Bulky Goods

From home appliances and industrial machinery to furniture and electronics, sea freight can accommodate large and irregular-sized cargo that air freight either restricts or charges heavily for.

• Highly Scalable

As your business grows, you can easily scale from Less than Container Load (LCL) to Full Container Load (FCL). This flexibility helps Indian SMEs and startups start small and scale operations without overcommitting resources.

• Environmentally Sustainable

Sea freight produces lower carbon emissions per shipment compared to air freight. For brands conscious about sustainability or aiming for eco-friendly practices, sea shipping is the greener choice.

How to Choose the Right Sea Freight Partner in India?

Choosing a professional, responsive, and trustworthy sea freight partner in India is a must that takes charge to ensure that your goods are safely handed over to you.

A poor choice can cost you time, money, and customer trust.

Here’s how to filter the import consulting and managing company wisely:

• Experience: Look for someone who has handled similar shipments to India. Check how many years the company has spent and help businesses like yours.
• Services Offered: End-to-end support is a must in sourcing products from international countries. See what they offer, like booking, paperwork, clearance, and delivery.
• Communication: A partner who keeps you updated is worth their weight in gold. From confirming the goods' quality at the supplier’s warehouse to safely landing the cargo on the Indian port, the real-time update keeps you energetic.
• Customs Expertise: Ensure they offer or work with reliable clearance agents in India. They will help you to clear the goods by submitting valid documents for importing goods.
• Client Reviews & Case Studies: Real-world success is better than promises. Prefer to visit their website and see the section on success stories. From there, you can make better decisions.

How iLife Import Can Support Your Sea Freight Needs from China to India?

At iLife Import, we don’t just move containers. We help businesses move forward.

Whether you’re importing electronics, fashion items, kitchenware, or industrial equipment, we manage your shipment from the Chinese supplier to your doorstep in India.

• End-to-end Sea Freight Solutions
• Customs Clearance Expertise
• Amazon/Flipkart Warehouse Delivery
• LCL and FCL Consolidation Services
• Affordable, Transparent Pricing

Take the stress out of international shipping. Let us handle the complexities so you can focus on growing your business.

Request a free consultation or a sea freight quote today.

FAQs

• What are the risks involved in sea freight, and how can they be mitigated?

Sea freight risks include delays, cargo damage, hidden charges, and documentation errors. From it, you can face additional inspection or maybe a customs hold on the entire container.

• How to minimize risks when importing goods by sea freight?

Use experienced freight forwarders with India-China trading experience:

1. Always opt for marine insurance.
2. Invest in durable, professional packaging.
3. Hire a dependable customs broker to handle clearance.

• How many major seaports are in India?

India’s vast coastline gives you options. Five ports can save you time and money.

1. JNPT (Nhava Sheva), Mumbai
2. Mundra Port, Gujarat
3. Chennai Port
4. Kolkata Port
5. Cochin Port

Choose your destination port based on your delivery location and the supplier's shipping route.

• What are the smart tips to reduce your sea freight cost & time?

The tips are as follows to save cost on sea freight:

1. Prefer consolidated shipments.
2. Avoid peak season.
3. Get multiple quotes.
4. Work with a proactive CHA.

These tips also save time for getting your goods into your warehouse.

• Is sea freight the right choice for you?

Yes, sea freight is likely your most strategic option, especially if you’re planning for long-term growth. It offers the best balance of cost-efficiency, cargo capacity, and scalability.

• Sea Freight vs Air Freight: Which is Better?

Choosing between sea and air depends on your business needs:

A. Choose Sea Freight if:

1. Your shipment is bulky or heavy.
2. You’re not in a hurry.
3. Cost is your primary concern.
4. You have a steady inventory flow.

B. Choose Air Freight if:

1. You’re launching a new product and need it urgently.
2. Your goods are lightweight or high-value (like electronics).
3. You’re managing flash sales or seasonal spikes.

For most online sellers scaling their operations, a hybrid model (air for samples or urgent SKUs, sea for bulk restocks) works best.