Shipping Firms Face Scrutiny Over Container Freight Surcharges

This article provides a detailed analysis of the main additional costs in international container shipping, including fuel surcharges, currency devaluation surcharges, and more. It aims to help shippers better understand and manage their logistics expenses.
Shipping Firms Face Scrutiny Over Container Freight Surcharges

In international ocean freight, Full Container Load (FCL) shipping remains a vital service, yet its associated surcharges often perplex shippers. A clear understanding of these additional fees—their origins and calculation methods—can significantly improve cost management. Below we analyze the major surcharges in FCL shipping:

1. Bunker Adjustment Factor (BAF)

When global fuel prices surge, carriers implement this fuel surcharge to offset operational costs. Typically calculated as a fixed amount per container or as a percentage of base freight.

2. Currency Adjustment Factor (CAF)

Applied when the freight-charging currency experiences significant depreciation, allowing carriers to pass losses to shippers. Usually calculated as a percentage of freight costs.

3. Port Congestion Surcharge (PCS)

Triggered by port disruptions (strikes, extreme weather) that extend vessel berthing time. Charged per container to compensate for additional costs.

4. Peak Season Surcharge (PSS)

Implemented during high-demand periods (e.g., pre-Christmas or Lunar New Year) when space becomes scarce. Typically a percentage of base freight.

5. Terminal Handling Charges (THC)

Covers loading/unloading, weighing, and trailer services at origin/destination ports. Charged per container based on size.

6. Alteration of Destination Fee

Applied when shippers request destination port changes post-shipment. Calculated per container.

7. Optional Destination Fee

For FCL shipments where shippers select discharge ports from three predefined options. Charged per container.

8. Direct Additional

Applied for shipments to non-base ports served by direct vessels without transshipment.

9. Deviation Surcharge

Incurred when vessels must reroute due to blocked standard shipping lanes.

10. Container Imbalance Charge (CIC)

Compensates carriers for repositioning empty containers caused by trade imbalances or seasonal fluctuations.

11. Heavy Lift/Long Length Additional (HLA/LLA)

For oversized/heavy cargo requiring special handling. Calculated based on excess dimensions/weight.

12. Suez Canal Surcharge (SCS)

Recoups transit fees paid to Suez Canal authorities for most routes transiting the waterway.

13. Panama Canal Transit Fee (PTF)

Applied to Far East-US East Coast routes transiting the Panama Canal.

Comprehension of these surcharges ensures smoother international logistics operations. For specialized needs, consulting professional logistics advisors is recommended to obtain tailored solutions. Real-time comparative pricing services can further assist in optimizing freight expenditures.