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Local costs on sea transport charges
It is essential to understand the local costs applied in a shipping quote because of the need to know all the costs associated with shipping goods. This is not only crucial for selecting a suitable service at a competitive price, but also for accurate financial planning and avoiding unpleasant surprises in total costs.For many companies, the lack of foresight and understanding of the real costs of transport services can lead to imbalances in their accounts and negatively affect both operational efficiency and brand image. Understanding and anticipating local expenditures is therefore critical to improving financial management and ensuring that products reach their destination in optimal conditions. The costs associated with shipping may seem complex at first, but by becoming familiar with the concepts involved, they become more understandable. It is important to consider the differences between quotes for full container shipments (FCL) and groupage shipments (LCL) to better understand the specific costs of each type of shipment.
Cost concepts in import and export shipping
In import and export shipping, it is essential to understand several important concepts, such as:
- Freight: the agreed price for the rental of the whole container or part thereof.
- Bank failure: a surcharge of 1% on freight, intended to cover possible currency fluctuations.
- THC (Terminal Handling Charges): costs associated with container handling in port facilities.
- Issuance of BL (Bill of Lading): expenses related to the issuance of the bill of lading.
- T3 (Rate Three): tariff applied to goods for their transit in the port area
- Transport: cost of moving the container from the port to the buyer’s premises, or from the seller’s premises to the port.
- Customs clearance: expenses related to the issuance of the SAD (Single Administrative Document) or other type of customs clearance.
- Tariff: tax applied to imported goods.
- Import VAT: a 21% tax on the CIF value (Cost, Insurance, Freight) and tariffs. The export is exempt from VAT.
- VAT on services: applies 21% VAT to services such as THC, transport, clearance and issuance of BL.
- Surcharges: surcharges that may include fuel adjustments and other additional expenses.
Main local expenditure on FCL and LCL
For Full Container (FCL) and Groupage (LCL) sea shipments, several major local charges apply to shipping rates:
- THC (Terminal Handling Charge): charges for handling the container at the port of departure and destination. In FCL, it is listed by container and may vary by geographical area and type of container. In LCL, it is calculated by weight/volume and is usually scaled by weight.
- ISPS (International Security Port Surcharge): surcharge applied by shipping companies to cover additional security costs. Listed by container, B/L or TEU in FCL, and by bill of lading in LCL.
- B/L (Bill of Lading): fee for documentation and issuance of the Bill of Lading. It applies for each B/L issued and varies according to the consolidator and the type of operation (export/import, port, etc.).
- Other concepts: may include equipment cleaning, logistics management, container control, among others. They apply according to the shipping company and the type of expense, per container or B/L.
- T3 (Rate Three): charge on transit of goods on docks and use of port facilities. In FCL, it can be applied in a simplified way (fixed amount per container) or by group of goods (based on container type and weight). It varies by port authority and shipping company.
- S.R.C. (Civil Liability Insurance): compulsory insurance of the freight forwarder, quoted by B/L.
- IMO and OWS in land transport
- Customs clearance: is offered in various ways (per container, commercial invoice, B/L, etc.) and depends on the complexity of the shipment.
Freight forwarders usually group these expenses into one pass per container, making it easier for customers to calculate and know all the costs of the operation in a more intuitive and comfortable way.
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