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A Complete Analysis of Local Costs

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Time of issue：

2025-12-26 17:37

A Local Charge refers to the local handling fees incurred at the port of loading or the port of discharge in international logistics. These charges are separate from sea or air freight and are primarily collected by ports, freight forwarders, customs authorities, and other relevant parties. They are categorized into two types: charges at the port of loading and charges at the port of discharge. The allocation of responsibility is closely tied to trade terms, and there is no standardized international pricing framework for these charges. Below is a detailed explanation:

I. Core Definitions and Classification

Local charges refer to the ground handling costs incurred “before the goods are loaded onto the vessel (at the port of loading)” and “after the goods arrive at the port of destination.” These charges do not include ocean freight or air freight, and typically also exclude customs duties and value-added tax (VAT) as well as other customs fees. They are categorized into two types based on the location where they are incurred:

Category	Undertaking party	Core scenario
Port of Origin Local	Exporter (Shipper)	Factory — Port trailers, customs clearance, terminal operations, documentation, and more
Destination Local	Importer (Consignee)	Port clearance, container retrieval, delivery, warehousing, and more.

II. Breakdown of Local Charges at the Port of Loading (Taking Full Container Ship as an Example)

Basic operation fee

Port handling charges ( THC ): Wharf and yard—Loading, unloading, and equipment usage for vessels

Origin Receiving Charge (ORC): For certain routes (such as South China to Europe and the U.S., and Central and South America), this charge replaces THC and is collected per container type, with a standard slightly higher than THC.

Document Fee (DOC): Shipping Company Documentation and Workflow

Seal Fee (SEAL): Lead seals used for container sealing

Equipment Interchange Receipt Fee (EIR): Container Pick-up and Return Documentation Procedure

Port Security Fee (ISPS): Port and Vessel Security

Inland and customs clearance fees

Trucking Fees: From factory/warehouse to port/yard—pricing is based on distance, container type, and whether the cargo is heavy or light; additional charges apply for overtime waiting.

Customs clearance fee: For each additional item beyond the first 5, an extra fee of approximately 30 yuan is charged. Bill of Lading Customs Declaration It's more expensive.

Booking Fee / Handling Fee: The fee for cargo agent booking and handling varies depending on the cargo agent and container type.

Special route fee

AMS (US-Canada Route): Advance Manifest Filing for the U.S.; ENS (European Route): Entry Notification for the EU.

Low-Sulfur Fuel Surcharge (LSS): The cost of environmentally compliant fuel, which varies depending on container type and shipping route.

Certificate of Origin / Commercial Inspection / Fumigation Fees: Charged according to product and destination country requirements, such as FORM E and fumigation certificates.

III. Breakdown of Local Charges at the Port of Destination (Taking Common Items for West Coast of U.S., Australia/New Zealand, and Europe as Examples)

Customs clearance and bill of lading transfer

Delivery Order (DO) Fee: The freight forwarder/ship agent issues a delivery order for the goods.

Customs clearance agency fee: The agency charges a fee based on the number of declarations or the value of the goods, whichever is applicable.

Inspection Fee: Customs box opening / machine inspection—actual costs incurred, including labor and site fees.

Dock and Container Handling Fees

Destination Port THC: Similar to the origin port, ports in Europe, the U.S., Australia, and New Zealand have higher standards.

Demurrage: Storage of containers after they arrive at the port beyond the free period (typically 3–7 days), charged on a daily basis. The larger the container type, the higher the fee.

Detention Fee: This fee is charged by the shipping company if a container is not returned on time after it has been picked up, and is calculated on a daily basis.

Inland delivery fee

Container trailer/delivery fee: From port to consignee’s address, priced based on distance, vehicle type, and cargo characteristics.

Container Unloading Fee (LCL): For LCL cargo, unpacking and sorting at the destination port warehouse are charged based on volume or weight.

IV. Trade Terms and Rules for Allocation of Costs

FOB The exporter bears the costs at the port of loading, while the importer covers the ocean freight plus the costs at the port of destination.

CIF/CFR: The exporter bears the local charges at the port of loading plus the ocean freight, while the importer bears the local charges at the port of destination.

DDU/DDP: The exporter bears the costs of all local transportation + ocean freight + customs clearance fees. DDP additionally includes tariffs and value-added tax.

EXW The importer bears the costs of local charges at the port of loading, ocean freight, and local charges at the port of destination.

V. Fee Standards and Important Notes

Pricing characteristics

There is no unified international standard, and factors such as ports, freight forwarders, shipping routes, and seasons all have an impact. Ports in Europe, Australia, and Japan generally charge higher rates, while those in Southeast Asia tend to be lower.

Key points to avoid pitfalls

Quote Confirmation: Freight forwarders are required to itemize all local charges to avoid hidden fees in “package pricing.”

Time-sensitive control: Plan ahead for trailer arrangements and customs clearance to avoid additional charges such as storage fees, container detention fees, or late filing penalties.

Clear terminology: The contract clearly specifies the party responsible for local expenses, particularly under DDP/DDU terms.

Exceptional charges: Such as inspection fees, amendment fees, and overdue storage charges—official invoices must be provided and verified.

VI. The Core Difference from Ocean Freight

Comparison item	Local fees	Ocean Freight
Charging entity	Port, freight forwarder, customs, agent	Shipping company
Nature of the fee	Ground operation costs	Maritime transportation costs
Amplitude of fluctuation	Relatively stable	Frequent fluctuations are influenced by factors such as cabin availability, fuel prices, and peak season.
Division of responsibilities	Trade term determination	FOB is paid by the importer; CIF is paid by the exporter.

7. Simplified Version of Local Air Freight Charges

Port of Loading: Pickup fee, customs clearance fee, security inspection fee, bill of lading fee, and handling fee.

Destination port: Customs clearance fees, document exchange fees, cargo pickup fees, warehousing fees, and delivery fees—all follow the same fee structure and pricing logic as ocean freight, based on weight/volume.

·END·

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