What are the common surcharges for ocean transportation?

YCD Trivia: What are the surcharges if you go by sea?

1

Terminal Handling Charge THC

Terminal Handling Charge (THC) can be further divided into OTHC – Origin Terminal Handling Charge and DTHC – Destination Terminal Handling Charge. Destination Terminal Handling Charge (DTHC).

2

Origin Receiving Charge ORC

The full name is Original Receiving Charge (ORC), which means Local Receiving Charge/Original Receiving Charge/Original Receiving Charge. This fee is more complicated, and is both different and related to THC.

ORC is only available at ports in South China, mainly in Guangdong, while THC is available at all ports (including ports in Guangdong).

Only one of ORC and THC will be charged – if ORC is charged, THC will not be charged, and if THC is charged, ORC will not be charged.

ORC is specifically for ocean routes from ports in South China with destinations in North America, Central and South America, Europe and North Africa. For ports in South China to other destinations, such as Southeast Asia, only THC will be charged, just like ports in other regions.

ORC and THC charges are different: ORC is generally $141 for a 20-foot container and $269 for a 40-foot container; THC is generally about $750 for a 20-foot container and $1,200 for a 40-foot container, and different shipping companies charge different standards.

3

General Rate Increase Surcharge GRI

The full name is General Rate Increase, which is generally used in South American and American routes. Because of the port, ship, fuel, cargo or other reasons, making the shipping company’s transportation costs increased significantly, the shipowner in order to compensate for these increased expenditures, so the comprehensive rate increase surcharge.

4

Container Imbalance Charge CIC

Container Imbalance Charge (CIC), sometimes called Container Imbalance Surcharge (CIS), is a surcharge imposed by a shipping company in order to make up for the cost of transferring empty containers due to the imbalance of cargo flow and containers caused by the imbalance of the trade volume or seasonal changes.

5

Emergency Bunker Surcharge EBS

Emergency Bunker Surcharge (EBS) is a surcharge on ocean freight, which is generally settled in US dollars like ocean freight. If it is FOB terms, this cost should be borne by the consignee, not the consignor, because EBS is not a FOB local cost. This fee can be paid on arrival or in advance.

EBS is generally in the international crude oil prices climbed rapidly, the shipping company felt more than their ability to bear, due to the market is not prosperous and inconvenient to rise in a timely manner in the case of shipping costs, in order to make up for the rapid rise in costs, and temporarily add a surcharge.

6

Fuel Adjustment Fee (FAF)

The full name is Fuel Adjustment Factor, which is generally used for Japanese shipping lines. This surcharge is somewhat similar to the temporary fuel surcharge above – essentially the same, but with a different name.

7

Currency Adjustment Factor CAF

Currency Adjustment Factor (CAF), also known as CAS (Currency Adjustment Surcharge), is a surcharge that is applied when the currency in which the freight is to be charged is significantly devalued and the shipping company suffers a large loss due to the devaluation of the currency. In order to make up for the loss, the shipowner will pass on the loss to the shipper/cargo owner by adding a currency adjustment surcharge.

8

Documentation Charge DOC

DOC= Document, in forwarding industry, DOC has 2 charges, one is DOC charged by shipping company, fixed charge, charged by RMB. The other is the DOC charged by the destination port, which is also regarded as one of the basic costs of the destination port, and the agent of the destination port is charged according to the US dollar, and the charge of each agent is not the same.

9

Destination Delivery Charge DDC

The full name is Destination Delivery Charge, in the DDU, DDP and other terms, the cost of the seller / shipper shipper to bear, otherwise by the buyer / consignee consignee to pay. For example, CIF terms – the buyer / consignee to bear the goods in the port of shipment after crossing the ship’s side of all the costs and risks, so the port of destination of all the costs, including DDC are borne by the party / consignee.

10

Peak Season Surcharge (PSS)

The full name is Peak Season Surcharge, this fee is generally in the peak season when the freight is busier, many shipping companies will take the excuse to charge, with our country’s “Spring Festival” price increases are somewhat similar. Every year from April to November is generally the peak season of the world’s freight transportation.

11

Suez Canal Surcharge SCS

The full name is Suez Canal Surcharge, Asia, Oceania, East Africa and other regions to the European routes are basically through the Suez Canal, the ship through the Suez Canal shipping companies need to pay a certain amount of navigation costs to the canal authorities, the cost of this cost of the shipowners through the Suez Canal Surcharge form of charge to the customer.

12

Panama Canal Surcharge PTF

Panama Canal Transit Fee is the same as the Suez Canal Surcharge, which is the same as the Suez Canal Surcharge, the routes from the Far East and the west side of the United States (referred to as the United States West) to the east side of the United States (referred to as the United States East) generally go through the Panama Canal. This cost is collected by the shipowner from the customer in the form of Panama Canal surcharge.

13

Temporary Additional Risk Surcharge TAR

The full name is Temporary Additional Risks (TAR), which is a bit of a mystery, but in fact can be simply understood as a war surcharge, or another way of saying war surcharge.

14

Heavy-Lift Surcharge HLA

The full name is Heavy-Lift Additiona, also called Surcharge For Over Weight, which means that the weight of a single piece of cargo exceeds a certain standard (the standard stipulated by different forwarders or shipowners may not be the same), and requires special equipment (such as heavy-duty crane) or special operation (such as the need for padding, reinforcing materials and manual lashing or reinforcing), and the handling is difficult, or the ship has to accumulate a large amount of cargo in the ship’s cargo. operation is more difficult, or in the ship’s accumulation of loads need special treatment, in order to make up for the increased operating costs and a surcharge.

Generally, a shipment exceeding 2, 3 or 5 tons is considered overweight. Overweight surcharge is charged according to the weight, the higher the weight, the higher the surcharge, and in case of transferring to another ship, an additional surcharge will be charged for each transferring to another ship.

15

Long Length Additional (LLA)

The full name is Long Length Additional, also called Over Length Additional or Surcharge For Over Length, which means that the length of a single piece of cargo exceeds a certain standard (the standard stipulated by different forwarders or shipowners may not be the same), and it needs special equipment or special operation, and the loading and unloading operation is more difficult, or it needs special operation on the stowage of the vessel. Or in the ship accumulating loads need special treatment, in order to make up for the increase in operating costs and charge a surcharge.

Generally more than 9 meters even if the length, if the container cargo is generally stipulated more than 6 meters even if the length, the rate according to the length of the graded increment.

16

Emergency Cost Recovery Surcharge ECRS

The full name is Emergency Cost Recovery Surcharge, can also be called “bad weather operation surcharge” – such as bad weather conditions caused by significant increases in ship transportation and operating costs and so on. In such cases, this fee will be added.

17

Container Service Charge CSC

Container Service Charge (CSC) is the full name of the container service charge.

18

Automatic Manifest System Entry Fee AMS

Full name is Automatic Manifest System, Automatic Manifest System Entry Fee. It is used in the U.S.-Canada route, unique to the U.S.A. – all cargoes to the U.S.A. or cargoes transiting through the U.S.A. to other countries or regions have to be declared by AMS (24 hours before loading).AMS is also known as 24-hour Manifest System/U.S. Anti-Terrorism Manifest System.

19

Automated Manifest System Entry Fee ACI

The full name is Advance Commercial Information, Canada Customs regulations, all goods to Canada or transshipment through Canada to other countries of the goods must be loaded 24 hours before the shipment to the Canadian Customs declaration, with the United States of America AMS is very similar.

20

Entry Summary Declaration ENS

The full name is Entry Summary Declaration, which is the advance manifest rule for customs of EU countries. Since January 1, 2011, the EU to (all imports into the EU) or through (all transit goods, all transit goods, all unloaded goods on board, etc.) all goods in EU ports mandatory implementation of the “Manifest Advance Declaration” rules, which applies to all 28 EU member states, as well as Norway, Switzerland, Turkey, etc.

21

Cleaning Charge CC

The full name is Cleaning Charge, also known as Cleaning Labor Charge, Cleaning Charge. This charge is generally more common for breakbulk transportation.

22

Port Congestion Surcharge PCS

Port Congestion Surcharge (PCS) is the full name of the port congestion surcharge, when the port is congested or especially busy, the waiting time and the ship’s period will be extended, and the tugboat fee and other port fees may also increase, which will result in a substantial increase in the cost of transportation, and in order to make up for the loss of this cost, the shipping company will charge the shipper a port congestion surcharge.

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