What components usually make up the cost of international ocean freight transport?

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Time of issue：

2024-08-28 00:45

Basic freight: This is based on the type of cargo (such as general cargo, special cargo, etc.), volume or weight, transportation distance, and the selected shipping company. Generally speaking, the shipping company will have its own freight rate, which stipulates the basic freight rate for different routes and different goods. For example, the base rate for a 20-foot container and a 40-foot container may be different and may fluctuate depending on the season, market supply and demand, etc.
Surcharge：
- Fuel Surcharge (BAF): Fees charged by shipping companies to cover changes in fuel costs due to fluctuations in fuel prices. It is usually calculated by multiplying a fixed percentage or amount by the base freight, such as a percentage of the base freight.
- Port Surcharge: The fees charged by the port to maintain normal operations and provide related services, such as terminal loading and unloading operations, yard services, etc. The fee may vary from port to port, with some ports charging a fixed amount per container or a percentage.
- High Season Surcharge (PSS): In the peak transport season, due to increased market demand, capacity constraints and other reasons, the shipping company to add additional fees. It is usually applied during specific time periods (e. g. around holidays, certain peak trading seasons, etc.) to balance supply and demand and increase revenue.
- Currency Devaluation Surcharge (CAF): When the currency exchange rate changes significantly, resulting in an increase in the operating costs of the shipping company, the fees charged to compensate for this loss. It is generally calculated on the basis of the magnitude of currency depreciation and related costs.
- Combined Rate Increase Surcharge (GRI): Shipping companies charge fees in addition to the basic freight due to various cost increases (e. g. labor costs, equipment maintenance costs, etc.) to ensure the profit level of the overall operation.
- Overweight, extra long, extra large surcharge: If the weight, length or volume of the goods exceeds the standards set by the shipping company (usually within the limits of the container's weight and size), the shipping company will charge additional surcharges for the excess to compensate for the special handling and transportation of these goods.
- Other special surcharges: Depending on the specific transportation situation and requirements, there may be other special surcharges, such as port congestion surcharge (PCS), port security facility fee (ISPS), anti-terrorism information fee (AMS), etc. These surcharges are usually levied in relation to specific events, regional security situations or policy requirements.
Inland transport costs：
- Inland transportation costs at the place of shipment: Refers to the cost of transporting the goods from the consignor's location to the port of loading. This may include the cost of towing the goods from the factory or warehouse to the container yard, loading and unloading costs, etc. If the place of shipment is far from the port of shipment, or if special modes of transport (e. g. rail transport) are required, this cost may be relatively high, and the charges are usually based on the distance of shipment, the quantity of goods and the mode of transport.
- Inland transportation costs at the place of receipt: The cost of transportation from the port of discharge to the place designated by the consignee after the goods arrive at the port of destination. Similar to inland transportation costs at the place of shipment, these costs are also affected by factors such as distance, mode of transport and local transport market conditions. If the consignee requests to transport the goods to a far inland area, or requires special delivery services (such as door-to-door delivery, installation and commissioning, etc.), the cost will increase accordingly.
Loading and unloading costs：
- Loading and unloading charges at the port of loading: The cost of loading and unloading operations charged by the port or terminal when the goods are loaded on board, including the cost of lifting the container from the yard to the ship, as well as the related handling, storage, etc. This part of the cost is usually calculated according to the type (20 feet, 40 feet, etc.) and quantity of containers, and may also vary depending on the efficiency of the port's operations, busyness, etc.
- Loading and unloading charges at the port of discharge: After the goods arrive at the port of destination, the cost of unloading the container from the ship and transporting it to the yard or designated place. The charges are similar to the loading and unloading charges at the loading port and are also affected by factors such as the type and quantity of containers and port conditions.
Other expenses：
- customs declaration fee: When importing and exporting goods, it is necessary to declare to the customs and go through the relevant procedures, and the customs broker or freight forwarding company charges for this. The amount of customs clearance fees is usually determined by factors such as the nature of the goods, their value and the complexity of the customs clearance, and is generally charged a fixed fee per ticket, or a percentage of the value of the goods.
- Document fee: Fees charged by shipping companies or freight forwarding companies for the processing of various documents in the course of transport (e. g. bills of lading, manifests, customs declarations, etc.) to pay for the production, review, delivery and other costs of documents. The document fee is usually a fixed amount per ticket or per container.
- Seal fee: The seal usage fee levied by the shipping company on each container is used to ensure the safety and integrity of the container during transportation. Seal fees are generally charged on a per-seal basis, with a fixed fee for each seal.
- Equipment handover fee (EIR): It is the function of handing over the container and other mechanical equipment between the container person, the container person and the container person or his agent when the container enters and leaves the port area or station, and the container person issues the container certificate. When containers or machinery and equipment are lent or recycled at the container terminal yard or freight station, the terminal yard or freight station will make an equipment handover order, which, after being signed by both parties, will be used as a certificate of equipment handover between the two, and a corresponding fee will be incurred.
- Fumigation fee (if required): For some specific goods (such as wood packaging materials, etc.), in order to meet the epidemic prevention requirements of the importing country, fumigation treatment is required to kill the pests and germs that may be carried. The cost of fumigation is usually calculated based on factors such as the quantity of goods, the method and duration of fumigation.
- Premium (optional): In order to ensure the safety of the goods during transportation, the owner may choose to purchase cargo transportation insurance. The amount of the premium depends on the value of the goods, the risk of transportation, the terms of the insurance and other factors, and is generally charged as a percentage of the value of the goods. If the owner does not purchase insurance, there is no need to pay this part of the cost.