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What are the shipping surcharges?
Mar 11, 2024|
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What is sea surcharge?
Due to various reasons of ships, goods, ports and other aspects, carriers will increase certain shipping costs in transportation. On the basis of keeping the basic Rate relatively stable, carriers will charge various Additional Surcharges (Additional Rate) to make up for losses.
Influencing factors
1. Global economic conditions: Global fuel prices, exchange rate fluctuations and changes in economic conditions will directly affect the level of Marine surcharges.
2. Political factors: Political unrest, wars, and geopolitical tensions may lead to higher surcharges in certain regions due to increased risks and uncertainties.
3. Seasonal factors: The costs of port operations and shipping companies may rise in different seasons, especially in some seasons with bad weather, resulting in an increase in surcharges.
4. Nature of goods: Special goods may require additional handling and security, which will be reflected in the surcharge.
These fees are usually charged by the transport company or related service provider and cover multiple aspects of costs. Understanding the nature and impact of ocean surcharges is critical for both trading companies and forwarders, as they directly affect overall transportation costs and supply chain efficiency.
Surcharges vary, and as some circumstances change, new surcharges are eliminated or enacted. What are the common sea surcharges at present?
Common types of sea surcharges
1. Comprehensive rate increase surcharge GRI
The full name of GRI is General Rate Increase. It is generally used by South American routes and American routes. Because of port, ship, fuel, cargo or other reasons, so that the shipping company's transportation costs increased significantly, shipowners in order to compensate for these increased expenses, so add a comprehensive rate increase surcharge.
2. Peak season surcharge PSS
The full name of PSS is Peak Season Surcharge. This charge is generally in the peak season freight more busy when a lot of shipping companies will excuse to charge, with our country's "Spring Festival" price rise is a bit similar. Every year from April to November is generally the peak season for the world freight.
3. EBS for emergency fuel surcharge
The full name is Emergency Bunker Surcharge, meaning emergency fuel surcharge. EBS is a surcharge of sea freight, which is generally settled in US dollars as sea freight. In the case of FOB terms, this cost should be borne by the consignee, not the shipper, because EBS is not a FOB local cost. This fee can be paid on arrival or in advance.
EBS is usually a surcharge temporarily imposed by shipping companies to make up for the rapidly rising cost when the international crude oil price is rapidly rising and the shipping companies feel that it is beyond their ability to bear.
4. Terminal operation fee THC
THC stands for Terminal Handling Charge. It can be further divided into OTHC-Origin Terminal Handling Charge and DTHC-Destination Terminal Handling Charge.
5. Origin collection fee ORC
The full name is Original Receiving Charge/Original Receiving Charge/Original Receiving Charge. This cost is quite complex, and it is different from and related to the terminal operation cost THC. ORC is only available in ports in South China, mainly in Guangdong, while THC is available in all ports, including those in Guangdong. ORC and THC collect only one of them-if ORC is collected, THC will not be collected again. If THC is collected, ORC will not be collected again. ORC is specially designed for shipping from ports in South China to ocean routes such as North America, Central and South America, Europe and North Africa. Ports from South China to other destination ports, such as Southeast Asia, only levy THC as ports in other regions.
6. Port congestion surcharge PCS
The full name is Port Congestion Surcharge. When the port is crowded or particularly busy, the waiting time and shipping schedule of the ship will be extended, and the tug fee and other port charges may also increase, which will cause a substantial increase in transportation costs. In order to make up for the loss of this cost, the shipping company will charge the port congestion surcharge to the shipper.
7. Container imbalance surcharge CIC
The full name of CIC is Container Imbalance Charge, sometimes called Container Imbalance Surcharge. This charge is a surcharge charged by the shipping company to cover the cost of transporting empty containers due to the imbalance of cargo flow and containers caused by the imbalance of trade volume or seasonal changes.
8. Delivery charge at destination DDC
The full name of DDC is Destination Delivery Charge. In terms of DDU and DDP, this charge is borne by the seller/shipper; otherwise, it is paid by the buyer/consignee. For example, CIF clause - Buyer/receiver bears all costs and risks after the goods cross the ship's rail at the port of shipment, so all costs at the port of destination including DDC shall be borne by Party/receiver.
9. Overweight surcharge HLA
HLA stands For Heavy-Lift Additiona, also known as Surcharge For Over Weight. Means that the weight of a single piece of cargo exceeds a certain standard (the standard may be different from different forwarders or shipooners), requires special equipment (such as heavy cranes) or special operations (such as the need for bedding, reinforcement materials and manual binding or reinforcement), is difficult to handle, or requires special treatment on the stowing of the ship, A surcharge to cover increased operating costs.
Generally more than 2 tons, 3 tons or 5 tons is considered overweight. Overweight surcharge is calculated according to the weight. The greater the weight, the higher the surcharge. If transshipment is required, an additional charge will be charged for each transshipment.
10. Currency depreciation surcharge CAF
CAF stands for Currency Adjustment Factor. Also known as CAS-Currency Adjustment Surcharge. When the currency of the collection of freight is significantly depreciated, the shipping company will suffer greater losses because of the devaluation of the currency. In order to make up for the loss, the shipowner will pass on the loss to the shipper/shipper by adding a currency depreciation surcharge.
11. Extra long surcharge LLA
LLA is Long Length Additional, also known as Over Length Additional or Surcharge For Over Length. A surcharge charged to cover the increased operating costs of a single piece of cargo whose length exceeds a certain standard (which may vary from forwarder to shipover), which requires special equipment or operations, which is difficult to handle, or which requires special handling on the stowage of the ship. Generally, it is more than 9 meters, and if it is a container cargo, it is generally more than 6 meters, and the rate increases according to the length.
12. Emergency cost surcharge ECRS
ECRS stands for Emergency Cost Recovery Surcharge, also known as "Severe weather Operation Surcharge" -- this charge is levied when bad weather conditions cause a significant increase in shipping and operating costs, etc.
13. Container service fee CSC
CSC stands for Container Service Charge.
14. Fuel surcharge FAF
The full name is Fuel Adjustment Factor, which is generally used on Japanese routes. This surcharge is somewhat similar to the temporary fuel surcharge above - essentially the same, but called differently.
15. Entry Summary Declaration Form ENS
ENS(Entry Summary Declaration) is the English abbreviation of "Entry Summary Declaration", which refers to the European Customs advance manifest rule. Since 1 January 2011. the EU has enforced the "manifest advance declaration" rule for all shipments headed to (all goods imported into the EU) or passing through (all goods in transit, all goods in transit, all ununloaded goods on board, etc.) EU ports, which applies to all EU member States.
16 Suez Canal surcharge SCS
SCS stands for Suez Canal Surcharge. The routes from Asia, Oceania, East Africa and other regions to Europe basically pass through the Suez Canal. When the ship passes through the Suez Canal, the shipping company needs to pay a certain navigation fee to the canal authority, and the ship owner collects this cost from the customer in the form of the Suez Canal surcharge.
17. Panama Canal Surcharge PTF
The full name of PTF is Panama Canal Transit Fee. Similar to the Suez Canal surcharge, routes from the Far East and the West to the East of the United States generally pass through the Panama Canal, and shipping companies are required to pay a certain amount of navigation fees to the canal authorities when passing through the Panama Canal.
18. Document fee DOC
DOC=Document. In the freight forwarding industry, DOC has two fees, one is the fixed fee of DOC charged by the shipping company, which is charged in RMB. The other is the DOC charged by the destination port, which is also one of the basic fees of the destination port. The agent of the destination port charges in US dollars, and each agent charges different fees.
19. Automatic manifest system entry fee AMS
Automatic Manifest System, Automatic Manifest System entry fee. For US-CANADA SHIPPING, US SPECIFIC - ALL GOODS TO the US OR transITING through the US to other countries or REGIONS are subject to AMS declaration (24 hours before shipment). AMS is also called 24 Hour Manifest System/American Counter Terrorism Manifest System.
20. Temporary risk surcharge TAR
The full name is Temporary Additional Risks. This fee is a bit puzzling, but it can be simply understood as a war surcharge, or another way of thinking of it as a war surcharge.
21. Automatic manifest system entry fee ACI
The full name is Advance Commercial Information. Canadian customs regulations, all goods to Canada or transiting through Canada to other countries must be declared to Canadian customs 24 hours before shipment, very similar to the AMS in the United States.
22. Composite rate increase surcharge GRI
The full name of GRI is General Rate Increase. It is generally used by South American routes and American routes. Because of port, ship, fuel, cargo or other reasons, so that the shipping company's transportation costs increased significantly, shipowners in order to compensate for these increased expenses, so add a comprehensive rate increase surcharge.
23. Cabin washing fee CC
The full name is Cleaning Charge, also known as cleaning service fee, cleaning and cleaning fee. This charge is generally more common in bulk cargo transportation.
24. Fuel surcharges
BUNKER SURCHARGE OR BUNKER ADJUSTMENT FACTOR (B.A.F.), which is added when fuel prices suddenly increase.
25. Transshipment surcharge
TRANSHIPMENT SURCHARGE: a surcharge charged by the shipper for goods destined for non-base port to be transshipped to destination port, including transshipment charge and secondary freight.
26. Surcharge for direct flights:
DIRECT ADDITIONAL: A surcharge charged by the shipping company when the cargo bound for a non-base port reaches a certain volume and can be arranged to sail directly to that port without transshipment.
27. Port surcharge:
PORT ADDITIONAL OR PORT SUECHARGE: A surcharge imposed by a shipping company in some ports due to poor equipment condition or low handling efficiency, and other reasons.
28. Port selection surcharge:
OPTIONAL SURCHARGE: a surcharge charged by the shipper who is required to choose one of the two or more ports proposed in advance when the shipper cannot determine the specific port of discharge during shipment.
29. Circumnavigation surcharge:
DEVIATION SURCHARGE: a surcharge imposed by a ship when it is necessary to make a detour to carry goods to the port of destination because the normal passage is blocked.
30. Surcharge for change of port of discharge:
ALTERNATIONAL OF DESTINATION CHARGE: a surcharge imposed on the owner's request to change the original port of destination of the cargo with the permission of the relevant authority (e.g. customs) and the consent of the ship.
