UNDERSTANDING THE SEA FREIGHT COSTS

In the field of logistics, when using different transportation methods, costs and surcharges are inevitable. Sea transport has many expenses, some of which are seasonal, while others depend on the shipping company. This article will help you understand these costs better. Below, we provide details on sea freight costs.

Ocean Freight (O/F)

O/F simply refers to the freight charges for shipping goods by sea from the port of origin to the destination port.

Documentation Fee

This is the cost of issuing the bill of lading and handling paperwork for the shipment. For exports, the shipping company issues the bill of lading. For imports, the consignee must obtain the delivery order from the shipping company to collect the goods.

Terminal Handling Charge (THC)

THC is the handling fee at the port, set by the port authority and collected by the shipping company from the shipper.

Container Freight Station Fee (CFS)

CFS is the fee for unloading goods from the container and bringing them to the warehouse, or from the warehouse to the container.

Container Imbalance Charge (CIC)

CIC is the fee for the imbalance of container inventory or additional import charges. It arises when moving empty containers from surplus areas to deficit areas.

Emergency Bunker Surcharge (EBS)

EBS is the fuel surcharge for the Asia route, covering the fluctuating cost of fuel. EBS is not part of Local Charges.

Currency Adjustment Factor (CAF)

CAF compensates for the cost of currency exchange rate fluctuations beyond ocean freight.

Change of Destination Fee (COD)

COD covers the cost when the shipper changes the destination port.

Bunker Adjustment Factor (BAF)

BAF compensates for fuel costs beyond ocean freight.

Handling Fee (HDL)

HDL includes fees for cargo handling and customs declaration.

Destination Delivery Charge (DDC)

DDC covers the cost of unloading, container arrangement, and port entry/exit.

Import Security Filing (ISF)

ISF is the security filing fee in the US.

Cleaning Container Fee (CCF)

CCF is the fee for cleaning empty containers.

Port Congestion Surcharge (PCS)

PCS is applied during port congestion when loading/unloading is delayed.

Peak Season Surcharge (PSS)

PSS is applied during peak seasons, often during holidays.

Automatic Manifest System (AMS)

AMS is the fee for automatic manifest filing for the US.

Storage Fee

This fee covers the cost of storing containers at the port.

Demurrage Fee (DEM)

DEM is charged for storing containers at the shipping company’s yard.

Detention Fee (DET)

DET is charged for storing containers at the customer’s own warehouse.

Lift On Fee

This fee is for lifting the container from the yard onto a truck.

Lift Off Fee

This fee is for lifting the container off a truck onto the yard.

The above information helps customers understand the costs involved in sea transport. We have provided detailed information about sea freight surcharges. We hope this information will be useful for our readers. SmartLink, a reputable import-export logistics partner with 13 years of experience, always accompanies you.

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