Overland Common Point
Detailed Freight Guide & Operational Context
Overland Common Point (OCP) is a tariff concession mechanism historically developed by transpacific ocean carriers and transcontinental railroads in the United States. It applies to waterborne import cargo moving through US West Coast ports (such as Los Angeles, Long Beach, Oakland, Seattle, or Tacoma) destined for inland points situated east of the Rocky Mountains.
The primary purpose of the OCP rate structure is to allow West Coast ports and connecting intermodal rail carriers to compete effectively with all-water ocean routes transiting through the Panama Canal directly to US Gulf and East Coast ports. Ocean carriers and railroads grant lower proportional freight rates on both the ocean and rail legs for shipments designated as OCP.
To qualify for an OCP rate, the ocean bill of lading and customs clearance documentation must clearly indicate the inland final destination beyond the designated overland boundary line, typically defined as states east of North Dakota, South Dakota, Nebraska, Colorado, and New Mexico.
Frequently Asked Questions about OCP
What does OCP stand for in shipping?
OCP stands for Overland Common Point, a freight tariff designation for ocean shipments discharging at US West Coast ports and moving by rail to inland Midwest or Eastern destinations.
Why do carriers offer OCP rates?
Carriers and rail operators offer OCP rates to keep West Coast intermodal routes cost-competitive against all-water shipping services navigating through the Panama Canal to US East Coast ports.
How does cargo qualify for OCP?
Cargo qualifies when the bill of lading explicitly names an inland destination situated east of the Rocky Mountain demarcation line (such as Chicago, Detroit, or Cleveland).
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