Ocean Charges

We are going to describe Ocean Freight Mode Charges:

We are going to categorize them in three sections: Freight, FOB and DDU.

  • Freight: it covers the charges that apply to the whole of the process of shipping.
  • Free On Board (FOB): covers charges that apply to goods shipped under the FOB Incoterms.
  • DDU: covers charges that apply to goods shipped under DDU.
Core Charges
Freight
Abbr Name Description Applied
LSC LOW SULPHUR CHARGE It is a surcharge for vessels operating in the European Union area. FCL: per-container
LCL: per-w/m
Import / Export
All countries
PCC PANAMA CANAL CHARGE It is a surcharge applied to cargo transiting through the Panama Canal. FCL: per-container
LCL: per-w/m
Import/Export
USA
OCE OCEAN FREIGHT It is the cost of shipping a container from one point to another. FCL: per-container
LCL: per-w/m
Import/Export
All countries
SUE SUEZ CANAL SURCHARGE It is a surcharge applied to cargo transiting through the Suez Canal. FCL: per-container
LCL: per-wm
Import/Export
All countries
ADE ADEN GULF SURCHARGE The Gulf of Aden is in the Republic of Yemen. Shipping companies are exposed to risk due to the presence of piracy. They see their costs increased due to higher insurance premiums because of this risk. For this reason a surcharge is applied to compensate cost. FCL: per-container
LCL: per-wm
Import/Export
Asia
BAF BUNKER ADJUSTMENT FACTOR Fuel prices are subject to major price fluctuations. For that reason, shipping companies may apply a bunker surcharge of BUC (Bunker Contribution) to compensate price fluctuations. FCL: per-container
LCL: per-wm
Import/Export
All countries
CAF CURRENCY ADJUSTMENT FACTOR If your cargo is paid in a foreign currency, the currency may be subject to exchange fluctuations. For that reason shipping companies may apply a currency surcharge to compensate exchange rate risks. It is charged as a percentage of the basic sea freight. FCL: per-cent
LCL: per-wm
Import/Export
All countries
IFP INTERIM FUEL PARTICIPATION It is an additional cost equivalent to the BAF and is applied when there is an increase in fuel prices. FCL: per-container
LCL: per-wm
Import/Export
All countries
FOB
Abbr Name Description Applied
COL COLLECTION FEE It is the cost of collecting and delivering goods from the departure point to the depot destination. FCL: per-container
LCL: per-Kg
Import/Export
All countries
SEC SECURITY FEE It is a security fee charged by ports per LCL or FCL. FCL: per-container
LCL: per-file
Import/Export
All countries
CUS CUSTOMS ENTRY It is a tax imposed by countries to protect their domestic markets against foreign products. FCL: per-file
LCL: per-file
Import/Export
All countries
DOC DOCUMENTATION It is an administration fee for preparation or handling import/ export documentation. FCL: per-file
LCL: per-file
Import/Export
All countries
OFUE ORIGIN FUEL SURCHARGE The Fuel surcharge is determined by the origin country and is applied due to oil prices. It is charged as a percentage of the sea freight. FCL: per-cent
LCL: per-cent
Import/Export
All countries
OTHC ORIGIN TERMINAL HANDLING It is a charge for handling containers at the port of origin or terminal before being loaded onboard a vessel. FCL: per-container
LCL: per-wm
Import/Export
All countries
DDU
Abbr Name Description Applied
ACI ADVANCED COMMERCIAL INFORMATION It is a fee charged for additional costs of declaring cargo information in advance to Canada authorities. FCL: per-file
LCL: per-file
Export
Canada
AMA ADVANCED MANIFEST FILING (CHINA & JAPAN) It is a fee charged for additional costs of declaring cargo information in advance to China and Japan authorities. FCL: per-file
LCL: per-file
Import/Export
China and Japan
AMS AMS SECURITY FEE (USA) Automated Manifest System (AMS) is a regulation that affects all ships bringing cargo into US ports. Comprised air/sea/rail modes. It is a electronic transmission system to US Customs (CBP) before the cargo arrives in the US. This is for security measures to avoid terrorism. This fee is charged for additional costs of declaring cargo information in advance. FCL: per-file
LCL: per-file
Export
USA
Accessorial Charges Freight
Freight
Abbr Name Description Applied
EBD EMERGENCY BUNKER DIFFERENTIAL It is an emergency expense for covering higher fuel prices than the ones that were originally anticipated. The charge is based on the size and type of the container, as well as, the destination port. LCL: per-w/m
Import/Export
All countries
FCL: per-container
LCL: per-w/m
Import/Export
ERS EMERGENCY RISK SURCHARGE It is an additional cost charged by the shipping line for handling cargo in dangerous regions including hazards, violence or piracy. The charge covers extra bunker cost, insurance coverage, and additional security measures. FCL: per-container
LCL: per-w/m
Import/Export
All countries
GRI GENERAL RATE INCREASE Used to describe an across-the-board tariff rate increase implemented by conference members and applied to base rates. FCL: per-container
LCL: per-w/m
Import/Export
All countries
HEA HEAVY LIFT An additional charge for handling heavy cargo that weighs more than the standard limit for a shipment. FCL: per-container
LCL: per-w/m
Import/Export
All countries
OOG OUT OF GAUGE SURCHARGE It is an additional charge for cargo that is out of the standard dimensions of a container and it is applied for lost slots because no other containers can be loaded. FCL: per-container
LCL: N/A
Import/Export
All countries
OWS OVER WEIGHT SURCHARGE It is charged by shipping companies for handling heavy containers that weigh more than the standard limit of a cargo. Generally applies to 20ft containers exceeding the weight of 14,000 kg tare. FCL: per-container
LCL: N/A
Import/Export
All countries
PSS PEAK SEASON SURCHARGE It is a fee applied in periods of peak demand. It is levied to all shipments that move in certain trades during the high volume periods. FCL: per-container
LCL: per-w/m
Import/Export
All countries
SPE SPECIAL EQUIPMENT SURCHARGE It is an additional cost applied for Hanging Garment containers, In-Gauge Flats and Open Tops, and 45 fts because they need to be transported in a special temperature environment. FCL: per-container
LCL: N/A
Import/Export
All countries
WAR WAR RISK It is an additional cost applied by shipping lines due to risk of war to compensate extra costs to bear. FCL: per-container
LCL: per-w/m
Import/Export
All countries
LWR LOW WATER SURCHARGE It is an additional cost applied by the Port of Montreal due to low water levels in the St. Lawrence River. It is applied for all shipments that transit this port. FCL: per-container
LCL: N/A
Import/Export
Canada
SED SANTOS EMERGENCY DREDGING FEE It is an additional charge for transiting the port of Santos (Brazil) due to dredging service. FCL: per-container
LCL: N/A
Import/Export
All countries
HAZ HAZARDOUS SURCHARGE It is a surcharge imposed for shipping hazardous goods. FCL: per-container
LCL: per-w/m
Import/Export
All countries
MAR MARPOL SURCHARGE It is a Marine Pollution regulation in tinl_he international Convention for tinl_he Prevention of Pollution from ships in tinl_he EU. FCL: per-container
LCL: N/A
Import/Export
All countries
SMD SECURITY MANIFEST DOCUMENTATION FEE An additional cost for submitting in advance manifest declarations to US, Canadian and Mexican customs authorities. It is applied for cargo loaded on a vessel at a non-US port. FCL: per-file
LCL: per-file
Import/Export
All countries
EIS EQUIPMENT IMBALANCE SURCHARGE It is a temporary cost charged by shipping lines to compensate the cost of relocating large quantities of empty containers between countries where there is an imbalance of trade (there is no export use for those containers that had been previously imported into those countries). FCL: per-container
LCL: N/A
Import/Export
All countries
ECA EMISSION CONTROL AREA It is the Emission Control Area by the MARPOL Protocol to reduce airborne emissions from ships. FCL: per-container
LCL: per-w/m
Import/Export
All countries
FOB
Abbr Name Description Applied
BIL SHIPPING LINE BILL OF LADING Bill of Lading (B/L)is a standard document issued by the carrier and shows the details of the shipment. The Bill of Lading objective is provide proof of receipt, transport agreement and title of ownership. FCL: per-file
LCL: per-file
Import/Export
All countries
CDD CARGO DATA DECLARATION The Cargo Data Declaration is a regulation applied by the European Union for potential security and safety threats. It is a fee charged for additional costs of declaring cargo information in advance to the European Union authorities. FCL: per-file
LCL: per-file
Import/Export
All countries
CLO CARRIER LO/LO The Equipment Handover Charge (Lo/Lo). Lo/Lo stands for Lift-on Lift-off. It is only applied for costs and administration of releasing containers for import Merchant Haulage. It is not applicable for Shippers’ Own containers. FCL: per-container
LCL: N/A
Import/Export
All countries
DEM DEMURRAGE CHARGES It is a charge paid by shippers. Demurrage applies to cargo and detention applies to equipment. It is applied if the loading or unloading times agreed are exceeded. And also to damages for detention if the agreed time for loading or unloading has lapsed and there is no demurrage days allowed. FCL: per-container
LCL: per-w/m
Import/Export
All countries
DET DETENTION CHARGES It is a charge against shippers.. It is applied to damages for detention if the agreed time for loading or unloading has lapsed and there is no demurrage days allowed. It is applied when ship arrives and cargo is not ready. FCL: per-container
LCL: per-w/m
Import/Export
All countries
HOM HOMELAND SECURITY It is an additional charge for security measures to protect the territory of the United States. FCL: per-file
LCL: per-file
Import/Export
USA
ISF IMPORTER SECURITY FILING It is a US Customs and Border Protection (CBP) regulation that requires importers to provide electronic data of the imported goods to the US customs. Declaration must be received the latest 24 hours before loading and declared before 48 hours before departure out of the port of loading. FCL: per-file
LCL: per-file
Import/Export
USA
LLS LOAD, LASH & SECURE It is a charge for loading and secure cargo applied for the provider of the service. FCL: per-container
LCL: per-w/m
Import/Export
All countries
PIF PORT INFRASTRUCTURE FEE It is charged by the port for port infrastructure costs. FCL: per-container
LCL: N/A
Import/Export
All countries
REP REPOSITIONING COST It is an additional cost when there is multiple ports of destination, and inbound cargo exceeds the outbound cargo, and shipping companies face large quantities of empty containers. It is applied to compensate the costs of transporting these containers to the closest hub for reuse. FCL: per-container
LCL: N/A
Import/Export
All countries
THC TERMINAL HANDLING The amount charged by the shipping company for handling containers at the port or terminal before being loaded on board a vessel. FCL: per-container
LCL: per-w/m
Import/Export
All countries
WIR WIRE LIFT An additional cost for the usage of special wire lift to lift containers onto the ground. FCL: per-container
LCL: N/A
Import/Export
All countries
DDU
Abbr Name Description Applied
DFUE DESTINATION FUEL SURCHARGE The Fuel surcharge is determined by the destination country and is applied due to oil prices. It is charged as a percentage of the sea freight. FCL: per-cent
LCL: per-cent
Import/Export
All countries
DHC DESTINATION HANDLING CHARGE It is a charge for handling containers at the destination port or terminal before being loaded onboard a vessel. FCL: per-container
LCL: per-w/m
Import/Export
All countries
HQA HIGH CUBE ADDITIONAL It is a charge that may be applied when you use a High Cube container. FCL: per-container
LCL: N/A
Import/Export
All countries
CCF CONTAINER CLEANING FEE It is a charge applied for extra costs for cleaning the container. It is applicable when the container does not meet the standard of cleanliness when is returned from the customer. FCL: per-container
LCL: N/A
Import/Export
All countries
CHF CHASSIS FEE An additional cost for the use of a chassis to facilitate overland transportation. FCL: per-container
LCL: N/A
Import/Export
All countries
PPF PIER PASS FEE It is The Traffic Mitigation Fee paid by the owner of a cargo and applied during peak hours when a container arrives or leaves Los Angeles or Long Beach marine terminal by truck. FCL: per-container
LCL: per-w/m
Import/Export
All countries
WHA WHARFAGE It is a fee applied by a port authority to the carrier for the usage of a port’s wharf. FCL: per-container
LCL: per-w/m
Import/Export
All countries
ONC ONCARRIAGE It is a charge for moving a container after is unloaded at the port of discharge. It is applied for inland movement service. FCL: per-container
LCL: per-Kg
Import/Export
All countries
DES DESTINATION CHARGES It is a charged applied to the place which cargo is consigned or where the cargo is turned over to the consignee or agent. FCL: per-container
LCL: per-w/m
Import/Export
All countries