
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.
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Freight Category: it covers the charges that apply to the whole of the process of shipping.
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Free On Board (FOB) Category: covers charges that apply to goods shipped under the FOB Incoterms. See Incoterms Guide
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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. |
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PCC | PANAMA CANAL CHARGE | It is a surcharge applied to cargo transiting through the Panama Canal. |
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OCE | OCEAN FREIGHT |
It is the cost of shipping a container from one point to another. |
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SUE | SUEZ CANAL SURCHARGE | It is a surcharge applied to cargo transiting through the Suez Canal. |
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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. |
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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. |
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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. |
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IFP | INTERIM FUEL PARTICIPATION | It is an additional cost equivalent to the BAF and is applied when there is an increase in fuel prices. |
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FOB | |||
COL | COLLECTION FEE | It is the cost of collecting and delivering goods from the departure point to the depot destination. |
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SEC | SECURITY FEE | It is a security fee charged by ports per LCL or FCL. |
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CUS | CUSTOMS ENTRY | It is a tax imposed by countries to protect their domestic markets against foreign products. |
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DOC | DOCUMENTATION | It is an administration fee for preparation or handling import/ export documentation. |
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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. |
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OTHC | ORIGIN TERMINAL HANDLING | It is a charge for handling containers at the port of origin or terminal before being loaded onboard a vessel. |
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DDU | |||
ACI | ADVANCED COMMERCIAL INFORMATION | It is a fee charged for additional costs of declaring cargo information in advance to Canada authorities. |
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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. |
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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. |
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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. |
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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. |
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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. |
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GRI | GENERAL RATE INCREASE | Used to describe an across-the-board tariff rate increase implemented by conference members and applied to base rates. |
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HEA | HEAVY LIFT | An additional charge for handling heavy cargo that weighs more than the standard limit for a shipment. |
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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. |
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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. |
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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. |
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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. |
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WAR | WAR RISK | It is an additional cost applied by shipping lines due to risk of war to compensate extra costs to bear. |
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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. |
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SED | SANTOS EMERGENCY DREDGING FEE | It is an additional charge for transiting the port of Santos (Brazil) due to dredging service. |
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HAZ | HAZARDOUS SURCHARGE | It is a surcharge imposed for shipping hazardous goods. |
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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. |
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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. |
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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). |
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ECA | EMISSION CONTROL AREA | It is the Emission Control Area by the MARPOL Protocol to reduce airborne emissions from ships. |
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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. |
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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. |
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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. |
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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. |
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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. |
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HOM | HOMELAND SECURITY | It is an additional charge for security measures to protect the territory of the United States. |
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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. |
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LLS | LOAD, LASH & SECURE | It is a charge for loading and secure cargo applied for the provider of the service. |
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PIF | PORT INFRASTRUCTURE FEE | It is charged by the port for port infrastructure costs. |
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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. |
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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. |
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WIR | WIRE LIFT | An additional cost for the usage of special wire lift to lift containers onto the ground. |
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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. |
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DHC | DESTINATION HANDLING CHARGE | It is a charge for handling containers at the destination port or terminal before being loaded onboard a vessel. |
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HQA | HIGH CUBE ADDITIONAL | It is a charge that may be applied when you use a High Cube container. |
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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. |
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CHF | CHASSIS FEE | An additional cost for the use of a chassis to facilitate overland transportation. |
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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. |
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WHA | WHARFAGE | It is a fee applied by a port authority to the carrier for the usage of a port’s wharf. |
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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. |
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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. |
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