Freight Charges Glossary | Freight Filter

Ocean Charges

We are going to describe Freight Mode Charges: Ocean, Air and Road. We are going to start by describing Ocean Freight Surcharges.

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

Freight Category: it covers the charges that apply to the whole of the process of shipping.
Free On Board (FOB) Category: covers charges that apply to goods shipped under the FOB Incoterms. See Incoterms Guide
DDU Category: covers charges that apply to goods shipped under DDU. See Incoterms Guide

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 costs.	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
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
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
Accesorial Charges
Freight
CON	CONGESTION SURCHARGE	In some ports, the process of incoming and outgoing vessels may be delayed. That congestion brings costs and to compensate those costs an additional surcharge is applied on the sea freight.	FCL: per-container LCL: per-w/m Import/Export All countries
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.	FCL: per-container LCL: per-w/m Import/Export All countries
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
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
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