Understanding Basis 1/1: Port-to-Port Freight Shipping Explained

What is Basis 1/1 (Basis 1 Port to 1 Port)?

In the intricate world of global logistics, clear communication is paramount. One of the fundamental terms you'll encounter, particularly in sea freight, is "Basis 1/1" or "Basis 1 Port to 1 Port." This acronym defines a specific scope of service within a freight forwarding agreement, indicating that the quoted price covers the movement of goods from one named port of loading to one named port of discharge.

Essentially, when Ocean Cargo provides a quote on a Basis 1/1, it means our responsibility and the associated costs cover the main ocean leg of the journey. This includes the handling and movement of your cargo from the moment it's received at the origin port terminal until it's made available at the destination port terminal. It's a straightforward, transparent model for understanding the core shipping cost.

This term is crucial for businesses to understand as it clearly delineates what is included in the freight rate and, equally important, what is not. It helps in budgeting and planning the entire supply chain, ensuring there are no hidden surprises when it comes to pre-carriage and on-carriage arrangements.

The Scope of Service: What Basis 1/1 Includes

When Ocean Cargo quotes on a Basis 1/1, our service encompasses the following key elements:

• Ocean Freight Charges: The primary cost for transporting your cargo by sea from the port of loading to the port of discharge.
• Terminal Handling Charges (THC) at Origin: Costs associated with moving the container from the landside transport onto the vessel at the origin port.
• Terminal Handling Charges (THC) at Destination: Costs for moving the container off the vessel and making it available for collection at the destination port.
• Bunker Adjustment Factor (BAF): A surcharge applied by shipping lines to account for fluctuations in fuel prices.
• Currency Adjustment Factor (CAF): A surcharge to compensate for currency exchange rate fluctuations.
• Security Surcharges: Costs related to enhanced security measures at ports and on vessels.
• Documentation Fees: Standard charges for processing essential shipping documents like the Bill of Lading.

Ocean Cargo ensures that all these components are clearly itemised or explained within your quote, providing complete transparency for your sea freight services.

What Basis 1/1 Does NOT Include

Understanding the exclusions of Basis 1/1 is just as important as knowing what's included. This helps you plan for the complete end-to-end logistics chain. Basis 1/1 typically excludes:

• Pre-Carriage: The transport of goods from your factory or warehouse to the port of loading. This is often arranged separately or as part of a broader service like Door-to-Port.
• On-Carriage: The transport of goods from the port of discharge to the final destination warehouse or facility. This is also typically arranged separately or as part of a Port-to-Door or Door-to-Door service.
• Customs Clearance: The process of clearing goods through customs at both the origin and destination countries. While Ocean Cargo offers comprehensive customs compliance services, this is a distinct service from the Basis 1/1 freight charge.
• Duties and Taxes: Any import duties, taxes, or other governmental charges levied by the destination country.
• Cargo Insurance: While highly recommended, cargo insurance is usually an additional service. Ocean Cargo can advise on suitable insurance options to protect your goods.
• Storage/Demurrage/Detention: Charges incurred if cargo is not cleared or collected within the free time allowed at the port or if containers are held beyond the free time.
• Special Handling: Costs for oversized, hazardous, or temperature-controlled cargo that requires specific equipment or procedures beyond standard container handling.

When you partner with Ocean Cargo, we provide a detailed breakdown, ensuring you have a full picture of your total logistics costs, whether you opt for a simple Basis 1/1 or a more comprehensive solution.

Why Choose Basis 1/1? Advantages for Businesses

Opting for a Basis 1/1 shipping arrangement offers several distinct advantages for businesses, particularly those with established logistics networks or specific operational needs:

1. Cost Control and Transparency: By isolating the core Ocean freight cost, businesses gain clear visibility into the main shipping expense. This allows for precise budgeting and comparison of freight rates from different carriers or forwarders.
2. Flexibility in Local Logistics: Companies with their own transport fleets or preferred local hauliers at origin and destination can manage pre-carriage and on-carriage independently. This provides greater control over local delivery schedules and costs.
3. Optimised Supply Chain Management: For businesses with complex supply chains, Basis 1/1 allows them to integrate the ocean leg seamlessly into their existing logistics framework, managing the first and last mile themselves or through trusted local partners.
4. Reduced Risk of Hidden Costs (for the ocean leg): With a clearly defined scope, the risk of unexpected charges related to the port-to-port movement is minimised, as all standard surcharges are typically included in the Basis 1/1 quote.
5. Ideal for Experienced Importers/Exporters: Businesses with a strong understanding of Incoterms and international shipping procedures often prefer Basis 1/1 as it aligns with their ability to manage the full end-to-end process.

Ocean Cargo works closely with clients to determine if Basis 1/1 is the most suitable option, or if a more inclusive service like Door-to-Port or Door-to-Door would better meet their requirements for shipping sea freight to the USA or Canada.

When is Basis 1/1 the Right Choice for Your Shipment?

Basis 1/1 is not a one-size-fits-all solution, but it is ideal in several scenarios:

• Experienced Shippers: If you have a dedicated logistics team or established relationships with local hauliers and customs brokers at both ends of the supply chain, Basis 1/1 offers maximum control.
• Cost-Sensitive Shipments: When the primary goal is to secure the most competitive Ocean freight rate and manage other segments independently to save costs.
• Specific Incoterms: Basis 1/1 aligns well with Incoterms such as FOB (Free On Board) or CIF (Cost, Insurance and Freight), where the seller's responsibility typically ends at the port of loading or destination, respectively, for the main carriage.
• High-Volume Shipments: For businesses regularly moving Full Container Load (FCL) or Less than Container Load (LCL) cargo, managing the pre- and on-carriage can be more efficient when handled in-house or by specialist local providers.
• Complex Project Cargo: For large-scale projects, such as shipping excavators and diggers to the UAE or wind turbine components to Australia, where specialised local handling is required, Basis 1/1 allows for bespoke arrangements around the core ocean transport.

Ocean Cargo's experts can help you evaluate your specific needs and determine if Basis 1/1 provides the optimal balance of cost, control, and convenience for your global shipments.

Navigating Global Logistics with Ocean Cargo

At Ocean Cargo, we understand that every shipment is unique. While Basis 1/1 offers a clear and cost-effective solution for the main ocean leg, we also provide a full spectrum of services to cover your entire supply chain, from door-to-door.

Our 25+ years of experience as a leading UK freight forwarder means we can offer tailored solutions, whether you need a simple port-to-port service or a comprehensive, integrated logistics package. We pride ourselves on reliability, precision, and building trust with our clients, simplifying even the most complex global movements.

From expert advice on Incoterms and customs regulations to efficient execution of your freight, Ocean Cargo is your strategic partner. We ensure your cargo moves smoothly, securely, and on schedule, regardless of the chosen service scope.