Shipping company surcharges (Local charges) Which is common?? What are local charges?? Normally, in addition to sea freight during transportation, The importer of goods must pay some additional fees to shipping companies/Forwarders. Join Cuong Quoc Logistics to immediately find out information about shipping company surcharges through the following shares!

Shipping company surcharges (Local charges) What is that?

Shipping company surcharges (Local charges) is a combination of local fees paid at the loading port and loading port during the import and export process of goods.

Normally, in addition to sea freight (Ocean Fee), Businesses must pay additional Local charges to the shipping company or Forwarder. For an import-export shipment, Shipper and consignee must pay Local charges. This fee will be collected by different shipping lines and ports. The forwarder collects this fee for collection purposes only. Then it will be returned to the shipping company and port.

Shipping company surcharges (Local charges) common

1. Loading and unloading fees – Terminal Handling Charge (THC)

Phí Terminal Handling Charge (THC) is one of the types of shipping company surcharges (Local charges) common. This type of fee is understood as a loading and unloading fee at the port. THC fees are calculated based on each container of goods.

This fee is intended to offset fees such as: loading and unloading fees, fee for gathering containers at the yard,…

Based on this fee, The shipping company will not have to pay any additional fees but will collect the fee from the shipper.

2. Goods handling fee – Handling Fee (HLF)

Phí Handling Fee (HLF) is a fee set by the Forwarder to collect money from the Shipper and Consignee.

HLF fee is considered a fee for the Forwarder's process of dealing with their agents in other countries to carry out some tasks such as issuing B/L., D/O, Customs declaration and some other documents,…

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

Delivery Order Fee is understood as the delivery order fee. When there is a shipment of imported goods, the consignee must go to the shipping company to get a delivery order ( D/O) khi có Arrival Notice.

The consignee will then bring it to the port to present it to the warehouse and make a receipt to pick up the goods. Shipping companies will make a delivery order and collect that D/O fee.

4. Automatic customs declaration fee for importing country – Automated Manifest System (AMS)

AMS fee is a mandatory fee due to customs of some US countries, Canada requested. This fee needs to be paid when declaring detailed goods, before they are loaded onto ships to move to those countries.

AMS fees usually range from 30-40 USD/bill.

5. B/L fees; Documentation fee – Documents Fee (DOC)

These are similar fees to D/O fees. When an export shipment arrives, Shipping companies will issue ocean freight bills, or air freight bill.

Shipping fees are paid by the sender or receiver thanks to the shipping company.

6. Loading and unloading fees & Warehouse management at the port – Container Freight Station Fee (CFS)

Container Freight Station Fee is one of the most common Local charges.

This fee will be collected by shipping companies when unloading goods from the container to the warehouse or from the warehouse to the container.

7. Fee for editing Bill of Lading – Amendment Fee

B/L fees only apply to goods exported abroad.

For some reasons, when you get the goods back, you need to edit the information on the B/L. You can ask the shipping company to edit it for you and they will charge a fee for that editing..

B/L fees range from 50- 100 US.

8. Fee for price fluctuation of raw materials – Bunker Adjustment Factor (BAF, EBS)

The Bunker Adjustment Factor fee is a surcharge that changes the cost of fuel for shipping lines.

This BAF surcharge is collected from shippers to compensate for fluctuations in fuel prices from time to time. These surcharges will usually be: Fuel surcharges on European and Asian routes.

Depends on each ship owner, Fuel surcharges will vary.

9. High season surcharge – Peak Season Surcharge (PSS)

Peak Season Surcharge is abbreviated as PSS. This is a fee collected by shipping lines during peak freight periods. Therefore, PSS fees are only temporary and appear when transportation demand increases.

10. Excess fee for imported goods – Container Imbalance Charge (CIC)

Container Imbalance Charge (CIC) is a type of container imbalance fee. CIC is also known as import surcharge.

This surcharge is collected by shipping lines to compensate for the cost of transporting containers from places with excess containers to places with a shortage of containers.. This process will ensure locations always have enough containers to pack goods.

>>> See more: Summary of 10 international ports in Vietnam

11. Additional charges of freight – General Rate Increase (GRI)

General Rate Increase – GRI is a fee added to the freight on all or a specific number of transport routes during a certain period of time., Usually during peak periods.

GRI is often decided by the shipping lines themselves, Usually based on supply and demand for each route. Nowadays, Shipping companies will have notices of adjustments, GRI surcharges apply directly on their website.

12. Sulfur surcharge – Low Sulphur Surcharge (LSS)

Sulfur surcharge (LSS) is the sulfur emission reduction surcharge. This fee applies during sea and air transport.

Sulfur surcharge is one of the mandatory surcharges in addition to freight and other surcharges. This fee is levied on all commercial shipping routes. Especially in the ECA area.

13. Port jam surcharge – Port Congestion Surcharge (PCS)

Port jam surcharge (PCS) is a type of seasonal surcharge.

Port congestion fees arise when there is a possibility of cargo congestion at the port. At that time, Storage costs increase, Container ships importing goods take 2-3 days to be cleared, Shipping lines and agents will take advantage of this fee when the port is congested.

14. Container cleaning fee – Cleaning Fee (CLF)

Cleaning fee (CLF) is the surcharge that the importer must pay to the shipping company to clean the empty container after taking the container to the warehouse and returning the empty container to the depot..

Depending on the level of cleaning the container varies, Shipping companies will charge different cleaning fees. Container cleaning fees will normally be collected or temporarily collected by the company when you receive the D/O. There are also cleaning fees such as:: Cleaning without using water; Cleaning must use water, chemical; Clean with chemicals and deodorize,…

15. Fee for preliminary declaration of goods – Entry Summary Declaration (ENS)

Entry Summary Declaration fee is abbreviated as ENS. This is understood as a surcharge for preliminary declaration of goods exported to the European market. This type of surcharge was created to ensure goods security standards.

By declaring the information of the shipment as the sender, receiver, Basic information of goods, risk level,…These shipments imported into the EU will be strictly controlled, promptly prevent shipments of dangerous nature.

16. Electronic manifest fee – Advance Filing Rules (AFR)

Advance Filing Rules are understood as electronic Manifest filing fees for goods exported to Japan.

The carrier will be the unit in charge of transmitting AFR information to help exporters. This surcharge will declare information about goods to Japanese customs authorities before the vehicle moves (at least 24 hours). Declaration will limit the smuggling of goods and avoid risks of goods entering the Japanese market.

>>> See more: What is MNF? Instructions on the steps to declare MNF

Conclude

Hopefully with that information Logistics power Sharing will help you understand more about shipping company surcharges (Local charges). To learn more information about the Logistics market, Dear readers, please regularly update new news on the website: https://cuongquoclogistics.com/

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Cuong Quoc Freight Forwarding Company Limited

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Hotline: 0972 66 71 66

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Website: https://cql.com.vn/