A #freight #forwarder must know the different types of #surcharges that can be applied to ocean freight.
For the correct application of the surcharges, it is necessary to know several concepts. One of the most important is the condition of the containers. A Full Container Load (FCL) is one in which the merchandise occupies the entire container, or it occupies enough space so that other merchandise does not fit. It eliminates the risk of handling the goods during transport because it is sealed at the source and does not open until it reaches its destination. The Low Container Load (LCL) , also known as #groupage or consolidation regimen, is used to group multiple shipments to multiple recipients until the container is full. It reduces the cost of the container when it is shared between several receivers in the same destination.
Depending on the type of container, the surcharges vary, and these can be of various types: basic, temporary, depending on the merchandise or according to the origin / destination.
What are the basic #surcharges for ocean freight?
When moving a product from one place to another, the first thing to pay is the O / f (Ocean Freight) or basic freight. It is the price of sea freight without any surcharge. This is a fee that must be paid for moving goods from one port to another. In FCL it is priced based on the type of container and in LCL for USD / Ton. In addition, there are other basic surcharges to pay:
Currency Adjustment Factor (CAF) - It is applied by shipping companies to correct the disparities between the local currency and the currency established in the freight. It is included as a percentage within the total amount of what the freight costs.
Bunker Adjustment Factor (BAF) - this is the volatile surcharge applied to fluctuations in the price of oil .
Banking Charge (BC) : to all shipments, both in FCL and in LCL, 1% must be applied to the freight price and all surcharges quoted in dollars (USD).
Congestion Surcharge (CS) : shipping companies apply this rate to the waiting time for congestion in ports, regardless of whether it is loading or unloading.
Terminal Handling Charge (THC) : these are the charges for port handling of the merchandise, both at origin and destination. Special machinery is usually required to move the containers, and the use of the machinery must be paid for.
Bill or Lading (B / L) : it is known as Bill of Lading and refers to the cost of its issue. It is applied for each document issued.
T3 : Applies for the use of port facilities , both at origin and destination. In the case of FCL, a fixed amount per #container or depending on the merchandise may be applied, at the choice of the consignee or shipping company, either per ton or per type of container.
Temporary surcharges applied to merchandise
An international cargo agency, depending on when or where you have to carry merchandise, may have to apply a whole series of fees.
War Risk Surcharge (WRS) : it is applied by the freight forwarder when the ship has to go through an area where a warlike conflict takes place or with high risk that it will be declared.
Winter Surcharge (WS) : it is a rate that only applies during winter due to the weather conditions that may occur while transporting.
Port Congestion : charged to cover losses caused by congestion and downtime on ships. Sometimes it is applied in cases of labor conflicts.
Peak Season Surcharge (PSS) - Applied by shipping companies in high season , depending on traffic and area.
There are also emergency surcharges that the lines apply to recover freight levels, in which case the General Rate Increase (GRI) , the General Rate Restoration (GRR) or the Emergency Rate Restoration (ERR) may be charged .
These types of charges are not fixed , but, as the name implies, only apply for a certain period of time and vary according to the area and the season of the year.
#Rates according to the type of goods or according to their origin / destination
Depending on the type of merchandise that the freight forwarder has to transport or where it has to take it, you can apply surcharges that are sometimes applied to non-standard containers, called Standard Dry , specific for heavy loads. The Open Top have a removable canvas roof and allow top loading. The Flat Track are ideal for pipes or machinery, are made of steel, and have side panels. The front panels may be hinged or fixed or they may not have. The rates applied to them can be:
Overweight Surcharge (OWS) : they are charged to heavy materials , and each shipping company applies them at its own discretion.
Out of Gauge (OGG) : it is applied in Open Top and Flat Rack because they do not have the standard measurements.
Special Equipment Surcharge (SEP) : it is applied to the freight of Standard Dry equipment to obtain the freight of special containers , which are usually Open Top or Flat Rack .
Inland Container Depot (ICD) : It is known as a dry port , where there are areas for handling goods that facilitate operations and services.
International Maritime Organization (IMO) : applies to vessels carrying dangerous goods .
Cargo Data Declaration (CDD) : merchandise destined for the European Union must pay this fee.
Automated Manifest System (AMS ): If the merchandise is unloaded or transshipped in the United States , this surcharge must be paid.
Are there more surcharges applicable to ocean freight?
There are surcharges that apply to fuel, such as the Bunker Recovery Cost (BRC) , the Emergency Bunker Surcharge (EBS) or the Bunker Contribution (BUC) , or those that apply for passing through channels such as Panama ( Panama Canal Surcharge or PCS ) or Suez ( Suez Canal Transit or SCT ).
Due to piracy attacks in the Gulf of Aden, the Aden Gulf Surcharge (Aden) is also applied in the area . Ports sometimes charge security surcharges, such as the Carrier Security Fee (CSF) or Security Surcharge (SEC) .
The surcharges charged for the transport of merchandise are important for freight forwarders . You must know them and know in which case each one is applied.
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