In the complex chain of international trade, freight forwarders play a pivotal role. However, the multitude of charges and obscure industry terminology often leaves traders perplexed, sometimes leading to unnecessary disputes. This guide provides a detailed English-Chinese reference of common freight forwarding charges with supplementary explanations, serving as a practical reference for international traders.
Imagine this scenario: Your international shipment has successfully reached its destination, but when you receive the freight forwarder's invoice, you're confronted with unfamiliar terms like "AMS," "BAF," or "ORC," and the total amount differs significantly from your expectations. This article aims to clarify these charges and help you avoid unnecessary costs.
I. Transportation Charges
These constitute the primary component of freight forwarding fees, categorized by transportation mode:
- Air Freight: Charges for air transportation, typically calculated by weight or volume, influenced by routes, airlines, and cargo type.
- Ocean Freight: Sea transportation costs, usually calculated by container type (20'/40') or cargo volume, affected by routes, shipping lines, and seasons.
- Local Charges: Port-related fees at origin/destination including terminal handling, customs clearance, and documentation.
- Trucking Fee: Land transportation costs to/from ports, calculated by distance and vehicle type.
- Courier Fee: Small parcel/document delivery charges based on weight and destination.
II. Surcharges
Additional fees beyond base freight, frequently updated and requiring close attention:
Fuel-Related Surcharges
- BAF (Bunker Adjustment Factor): Maritime fuel charge
- EBA/EBS: Emergency bunker charges for Africa/Australia routes
- FAF: Japan route fuel adjustment
- FSC: Air freight fuel surcharge
Other Common Surcharges
- CAF (Currency Adjustment Factor): Exchange rate fluctuation charge
- DDC (Destination Delivery Charge): US/Canada destination fee
- ORC (Origin Receipt Charge): Guangdong origin fee
- PSS (Peak Season Surcharge): High-demand season premium
- WARS (War Surcharge): Conflict zone premium
- AMS (Automatic Manifest System): US/Canada customs filing fee
III. Additional Service Charges
Miscellaneous operational fees:
- Documentation fees (bills of lading, invoices)
- Telex release/surrendered B/L fees
- Amendment charges for document changes
- Booking fees for space reservations
- Customs clearance and inspection fees
- Fumigation charges for wooden packaging
- Demurrage/detention for container overuse
- LCL (Less-than-Container Load) service fees
IV. Avoiding Freight Charge Disputes
Key recommendations for traders:
- Select reputable forwarders with proper credentials
- Clarify all charges before contract signing
- Request detailed invoices with itemized charges
- Maintain clear communication channels
- Document all correspondence for reference
V. Conclusion
Understanding international freight charges is essential for cost control and dispute prevention in global trade. This reference provides traders with the necessary knowledge to navigate the complex landscape of forwarding fees effectively.