Maritime freight surcharges
The experience of a leader Security and traceability in all shipments
resources
Surcharges applicable to FCL and LCL sea freight
Freight forwarders should be familiar with the different types of surcharges that can be applied to ocean freight, as these can vary depending on several factors, including the condition of the containers. Here is a description of some common surcharge types:
- Basic surcharges: these surcharges are applied as part of standard freight and may include additional costs for the size or type of container, as well as for the shipping route.
- Temporary Surcharges: some circumstances may result in temporary surcharges, such as seasonal spikes in shipping demand, extreme weather events, or political situations that affect maritime routes.
- Surcharges depending on merchandise: some merchandise may be subject to additional surcharges due to their specialized nature or requiring specific transport conditions, such as merchandise dangerous or perishable.
- Surcharges depending on origin/destination: surcharges may vary depending on the country of origin or destination of the cargo, as well as local regulations and operating costs in those locations.
- Surcharges by container type: depending on the type of container used (FCL or LCL), different surcharges may apply. For example, Full Container Load (FCL) may have surcharges due to its greater capacity and exclusivity, while Low Container Load (LCL) may have surcharges related to the consolidation of loads from multiple shippers.
Basic ocean freight surcharges include:
- Currency Adjustment Factor (CAF): this surcharge is applied to correct disparities between the local currency and the currency established in the freight. It is usually expressed as a percentage of the total freight amount.
- Bunker Adjustment Factor (BAF): refers to the volatile surcharge applied to oil price fluctuations, since the cost of fuel is an important factor in the operating costs of vessels.
- Banking Charge (BC): costs associated with container handling in port facilities.
- Congestion Surcharge (CS): shipping companies apply this fee to compensate for waiting time due to congestion at ports, whether during loading or unloading of merchandise.
- Terminal Handling Charge (THC): these are the charges for port handling of the merchandise, both at the port of origin and at the of destiny. They are charged for the use of specialized machinery necessary to move the containers.
- Bill of Lading (B/L): refers to the cost of issuing the Bill of Lading, a document that represents the merchandise and the terms of the maritime transport contract. This charge is applied for each document issued.
- T3: this charge is applied for the use of port facilities at both the port of origin and destination. In the case of FCL, it can be a fixed amount per container or based on the commodity, either per ton or per container type.
Temporary surcharges applied to merchandise:
- War Risk Surcharge (WRS): applied by the freight forwarding company when the ship must pass through an area with war conflict or high risk of conflict.
- Winter Surcharge (WS): rate applied only during winter due to adverse weather conditions that may affect transportation.
- Port Congestion: charged to compensate for losses caused by congestion and downtime of vessels, often due to labor disputes or excess traffic.
- Peak Season Surcharge (PSS): applied by shipping companies during the high season, depending on the increase in traffic and demand in certain areas . Feedback
Other surcharges that apply depending on the type of merchandise, its destination or the type of container used:
- Overweight Surcharge (OWS): applied to heavy loads that exceed established limits, with varying criteria depending on the shipping company.
- Out of Gauge (OGG): applied to non-standard containers such as Open Top or Flat Rack due to their unusual dimensions.
- Special Equipment Surcharge (SEP): applied to the freight of special containers, such as Open Top or Flat Rack, instead of standard containers.
- Inland Container Depot (ICD): rate applied to operations in dry ports where goods are handled to facilitate transportation.
- International Maritime Organization (IMO): applied to ships carrying dangerous goods, in compliance with IMO regulations.
- Cargo Data Declaration (CDD): rate applied to goods destined for the European Union to comply with data declaration requirements.
- Automated Manifest System (AMS): rate applied when merchandise is unloaded or transshipped in the United States, to comply with the requirements of the automated manifestation.
In addition to these surcharges, there are others related to fuel, such as the Bunker Recovery Cost (BRC), the Emergency Bunker Surcharge (EBS) or the Bunker Contribution (BUC), as well as surcharges for the use of canals such as the Panama Canal (Panama Canal Surcharge or PCS) or the Suez Canal (Suez Canal Transit or SCT). Port security surcharges, such as the Carrier Security Fee (CSF) or the Security Surcharge (SEC), may also apply, especially in areas affected by piracy such as the Gulf of Aden (Aden Gulf Surcharge). These surcharges are important for freight forwarding personnel, who must be aware of them and apply them accordingly.
Request a Quote
Our dedicated team of professionals will contact you to provide you with personalized and efficient solutions.