Imagine your goods are packed and ready to board an ocean vessel bound for their destination. Suddenly, your freight forwarder notifies you about an additional "COV fee." What exactly is this charge, and should you pay it? Let's examine this often-misunderstood aspect of maritime shipping.
What Is a COV Fee?
COV stands for "Change of Vessel," and the fee represents a charge imposed by shipping lines when cargo needs to be transferred to a different vessel than originally scheduled. This typically occurs when shipments miss their intended voyage and must be rebooked on a subsequent sailing.
Why Do Shipping Lines Charge COV Fees?
The rationale behind COV fees resembles airline policies for missed flights. When cargo fails to meet its scheduled departure due to shipper-related issues such as:
- Customs clearance delays
- Late delivery to the port
- Documentation problems
- Incomplete cargo preparations
Shipping lines incur operational costs to reallocate the cargo to alternative vessels, potentially leaving unused capacity on the original sailing. The COV fee helps carriers offset these logistical adjustments.
Key Considerations About COV Fees
Not all carriers impose COV charges, particularly on short-haul routes where vessel changes may be more routine. When applied, fees vary significantly by:
- Shipping line policies
- Route characteristics
- Port-specific regulations
Standard COV fees typically range around $30 USD per occurrence, though this varies by carrier and trade lane. Importantly, when vessel changes result from carrier-caused issues like:
- Vessel delays
- Canceled sailings
- Operational changes
Responsibility for associated costs should not fall on shippers. Industry practice generally holds carriers accountable for expenses stemming from their own operational decisions.
When facing COV charges, shippers should first verify the root cause before payment. Legitimate carrier-imposed changes shouldn't generate additional fees for customers. Understanding these distinctions helps businesses manage shipping costs effectively while maintaining positive carrier relationships.