Shipping company surcharges (Local Charges) What is it and what types are included?? In addition to ocean freight, Importing businesses often have to bear some additional fees from shipping lines or forwarders. Let's explore with Cuong Quoc Logistics detailed information about these types of surcharges through the article below!

Shipping Carrier Surcharge (Local Charges) What?

Shipping company surcharges (Local Charges) is a collection of local fees incurred at the loading port and unloading port during the import and export process.

In addition to sea freight (Ocean Freight), Businesses often have to pay additional Local Charges to shipping lines or forwarder companies. These fees apply to both shippers (consignor) and consignee (consignee), Depending on the regulations of each shipping line and seaport. The forwarder collects this fee only as an intermediary, then return it to the shipping company or port.

Types of Shipping Line Surcharges (Local Charges) Popular

1. Terminal Handling Charge (THC)

Phí Terminal Handling Charge (THC) is a common fee, used to pay for loading and unloading goods at the port. This fee is calculated based on each container of goods, to offset costs such as container loading and unloading, Gathering containers at the port yard, v.v. Thanks to this fee, The shipping company does not have to bear additional costs but will recover it from the shipper.

2. Handling Fee - Handling Fee (HLF)

Phí Handling Fee (HLF) is a fee imposed by the forwarder company to collect from the shipper or consignee. This fee is considered the cost for the forwarder to coordinate with agents in other countries to perform tasks such as issuing Bill of Lading. (B/L), Delivery Order (D/O), customs declaration, and process related documents.

3. Delivery Order Fee – Delivery Order Fee (DOF)

Phí Delivery Order Fee (DOF) is the cost associated with obtaining a delivery order. When imported goods arrive, The consignee needs to go to the shipping company to receive delivery orders (D/O) after receiving notification of goods arrival (Arrival Notice). Afterward, The consignee brings the D/O to the port to present and complete procedures for receiving goods. Shipping lines will collect DOF fees when issuing this order.

4. Automated Manifest System (AMS)

AMS fee is a mandatory fee required by customs in some countries such as the US and Canada. This fee is applied to declare detailed goods before they are loaded onto ships for transport to these countries. AMS fees usually range from 30-40 USD per bill.

5. Documents Fee – Documents Fee (DOC)

Phí Documents Fee (DOC) similar to DOF fees, relating to the issuance of transport documents such as Bill of Lading (B/L) or Airway Bill. This is the fee that the shipper or consignee pays to have the shipping company handle the documentation procedures.

6. Container Freight Station Fee - Container Freight Station Fee (CFS)

Phí Container Freight Station Fee (CFS) is a fee incurred when goods are unloaded from the container into the warehouse or from the warehouse to the container. This type of fee is often collected by transportation companies to offset the costs of managing and handling goods at the warehouse.

7. Bill of Lading Amendment Fee – Amendment Fee

The Amendment Fee applies when the shipper or consignee requests to edit information on the Bill of Lading (B/L) due to certain reasons. The shipping company will collect this fee, usually ranges from 50-100 USD depending on regulations.

8. Fuel Price Variation Fee – Bunker Adjustment Factor (BAF, EBS)

Phí Bunker Adjustment Factor (BAF) is a fee to compensate for fuel price fluctuations of shipping lines. This fee is applied depending on the period and shipping route, Particularly popular on European and Asian routes. Fees vary depending on the policy of each shipping company.

9. Peak Season Surcharge (PSS)

Phí Peak Season Surcharge (PSS) Applicable during peak shipping periods, when transportation demand increases. This is a temporary fee, Only appears during busy shipping seasons.

10. Container Imbalance Charge – Container Imbalance Charge (CIC)

Phí Container Imbalance Charge (CIC) is a fee to offset the cost of transporting containers from places with excess containers to places with a shortage of containers. This fee ensures locations always have enough containers to pack goods, Usually applied to imported goods.

11. General Rate Increase – General Rate Increase (GRI)

Phí General Rate Increase (GRI) is a charge added to the freight on some or all routes during a certain period of time, Usually during peak season. GRI is decided by shipping lines based on supply and demand, and is often announced on their website.

12. Low Sulfur Surcharge (LSS)

Phí Low Sulphur Surcharge (LSS) is a mandatory fee aimed at reducing sulfur emissions in shipping and aviation. This fee applies on all shipping routes, especially in emission control areas (ECA).

13. Port Congestion Surcharge (PCS)

Phí Port Congestion Surcharge (PCS) arises when the port experiences cargo congestion, leading to increased storage costs. In case the ship has to wait 2-3 days to release the goods, The shipping line or agent will collect this fee to offset costs.

14. Container Cleaning Fee – Cleaning Fee (CLF)

Phí Cleaning Fee (CLF) is the fee that the consignee pays to clean the empty container after receiving the goods and returning the container to the depot. Depends on the level of hygiene (Do not use water, Use water and chemicals, or remove odors), This fee will vary and is usually collected when collecting D/O.

15. Entry Summary Declaration Fee – Entry Summary Declaration (ENS)

Phí Entry Summary Declaration (ENS) is the fee for preliminary declaration of goods exported to the European market. This fee ensures goods security through declaring information such as the sender, receiver, and the risk level of the shipment, Helps strictly control dangerous shipments.

16. Electronic Manifest Filing Fee – Advance Filing Rules (AFR)

Phí Advance Filing Rules (AFR) is the electronic manifest declaration fee for goods exported to Japan. The shipping company will, on behalf of the shipper, transmit cargo information to Japanese customs at least 24 hours before the ship moves., to limit smuggling and goods risks.

Conclude

Hopefully this article from Cuong Quoc Logistics has helped you better understand shipping company surcharges (Local Charges). To update more information about the logistics field, Please regularly follow new articles on the website: https://cuongquoclogistics.com/

Cuong Quoc Freight Forwarding Company Limited

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