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Shipping explained

Shipping is a global industry like no other. It connects people, goods and essential commodities to build thriving economies and prosperous societies.

How shipping works

Shipping is global trade

Shipping is more than a ship. Shipping is food on the table. A warm home. Life-saving medicines and essential raw materials. Shipping is cars, fuel, smartphones and trainers. Shipping is global trade. Shipping is life.

With the smallest environmental footprint of all transportation methods, shipping is the most sustainable way to keep global trade on the move.

Most of us enjoy the benefits of shipping without thinking about what it takes to ship goods and commodities across vast oceans and hazardous waterways. Whether it's specialist insurance or complex contractual arrangements, sourcing compliant fuels or managing crew wellbeing, there's more to shipping than loading a ship with cargo.

Yet understanding this highly complex and regulated industry is key to understanding how our modern world works. Let's navigate this together.

From typhoons to whale strikes: how trade stays safe and sustainable

Typhoons, whale strikes and pirates: the challenges of moving cargo safely

Rotate the globe to follow our container ship on its journey round the world and learn about the rules and processes that keep trade safe and sustainable.

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1. Before departing

Containers must be safely secured, free of pests, stowaways and illegal substances, and hazardous goods properly declared, stowed, secured and carried safely. All ship certificates and documents must be in ship shape to avoid delays and keep the crew and environment safe.

Before a ship can depart, it must comply with rules and regulations to ensure its containers are safely secured, free of pests, stowaways and illegal substances. Hazardous goods must be properly declared, stowed, secured and carried safely. It’s important that all custom related documents and ship certificates (including Classification and crew certificates) are in place to avoid ships being detained and to keep the crew and the environment safe at sea.

BIMCO helps shipowners understand carriage requirements for different cargoes and provides information that supports voyage planning, bunkering terms, ship and hull inspections. BIMCO’s contracts and clauses provide a legal framework should something go wrong.

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2. Challenging conditions – encountering a typhoon in the Indian Ocean

Managing extreme weather is a fact of life at sea. A ship will be checked for compliance with intact stability criteria and a decision taken about whether to take heavy weather ballast ahead of venturing into rough weather areas. Lost containers must be reported.

Managing extreme weather is a fact of life at sea. At sea the ship receives weather forecasts and sea state warnings to keep it safe. Before leaving port, the ship will be checked for compliance with intact stability criteria. The damage stability conditions will be carefully evaluated, and decisions made about whether to take heavy weather ballast ahead of venturing into rough weather areas. If containers are lost during transit, ships must comply with new SOLAS rules on reporting container loss.

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3. Threat areas – potential conflict zone in Red Sea

War, terrorism and piracy can make some routes unsafe. BIMCO provides general security and risk advice and has developed contracts and clauses to cover war risks. If the ship decides to re-route, BIMCO’s port database can help route planning. While at sea, a framework of international regulations and laws apply to keep ship, crew and marine environment safe.

War, terrorism and piracy can make some routes unsafe. BIMCO provides general security and risk advice to help members plan their routes and has developed contracts and clauses to cover war risks, including VOYWAR, CONWARTIME and, should a ship need to contract local security escort vessels, SEV GUARDCON. If the ship decides to re-route to avoid unnecessary risk, BIMCO’s port database will help to plan a new route and minimise the additional cost and delay of the diversion.

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4. Navigating regional requirements - arrival in EU

The ship unloads some cargo in the EU and must comply with rules about emissions and clean fuels.

The ship unloads some cargo in the EU. BIMCO’s port database provides up to date information on local rules and regulations, as well as important local information, such as special holiday dates. In EU waters, the ship must also meet requirements about emissions and clean fuels.

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5. The High Seas

The duty to render assistance at sea applies to all ships in all areas. Some activities are universally illegal, including piracy, drug trafficking, human trafficking, illegal fishing, unauthorised dumping of hazardous materials, and acts of violence or terrorism.

Ships follow a route that optimises operational performance and efficiency to reduce costs and greenhouse gas emissions. Anywhere at sea, a framework of international regulations and laws help keep the ship, crew and marine environment safe.

There are no local or national laws covering the high seas but international law still applies. The duty to render assistance at sea applies to all ships in all areas and some activities are universally illegal, including piracy, drug trafficking, human trafficking, illegal fishing, unauthorised dumping of hazardous materials, and acts of violence or terrorism. Flag states have jurisdiction over administrative, technical and social matters for ships flying their flags, wherever they may be.

New rules to protect ocean biodiversity in the high seas, known as the BBNJ Agreement, are likely to change the way high seas governance is viewed in future.

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6. Protecting marine biodiversity - Northern Atlantic off Canadian coast

Ships must be aware of local protective measures, such as diversions or speed limits, designed to protect whales, other marine life and particularly sensitive sea areas.

In some places there are mandatory and voluntary measures to protect particularly sensitve sea areas or which focus on vulnerable species such as whales and other marine life. Ships must be aware of these measures at all times, which may include re-routing or reducing speed.

BIMCO and ICS's Underwater Radiated Noise Guide, helps the shipping industry understand and reduce underwater radiated noise across their fleets to minimise the negative impact on marine life.

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7. Local port restrictions - arrival US East Coast

On arrival, it is important to check for stowaways, and comply with rules about biofouling, ballast water, waste management and any scrubber washwater. BIMCO’s port database provides information about local restrictions, requirements for crew and local holidays.

At its destination, our ship must comply with local port restrictions, which might include the discharge of waste and any scrubber washwater. Once again BIMCO’s port database is used to provide information about local restrictions and special requirements for crew. It is important to check for stowaways, and comply with rules about biofouling, ballast water and anything else specific to the location.

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8. The end of the journey - shoreside

On a per ton basis, shipping has the lowest environmental footprint in the transport sector and is the cheapest way to transport goods, bringing jobs and prosperity to the world.

International shipping brings jobs and prosperity to the world. Shipping has the lowest environmental footprint per ton in the transport sector and is the cheapest way to transport goods: sea transport contributes only $5 to the $100 cost of Nike trainers ¹.

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