Ocean Freight Surcharges

Ocean Freight Surcharges Explained: BAF, THC, CAF & More

What 24 ocean freight surcharges mean, including BAF, THC, and CAF, with typical ranges, who pays, and how to minimize them.

Ocean freight quotes often add surcharges to the base rate. This guide explains 24 of them.

Surcharges covered

  • BAF (Bunker Adjustment Factor): Fuel cost adjustment based on bunker price fluctuations
  • EBS (Emergency Bunker Surcharge): Temporary surcharge for rapid fuel price increases
  • LSS (Low Sulphur Surcharge): Surcharge for IMO 2020 compliant low-sulphur fuel
  • THC (Terminal Handling Charge): Charges for container handling at port terminals
  • ORC (Origin Receiving Charge): Port charge specific to South China ports
  • DDC (Destination Delivery Charge): Charges for container delivery at destination port
  • PCS (Port Congestion Surcharge): Surcharge for delays caused by port congestion
  • CIC (Container Imbalance Charge): Charge for repositioning empty containers
  • GRI (General Rate Increase): Across-the-board freight rate increase
  • PSS (Peak Season Surcharge): Additional charge during high-demand shipping periods
  • SCS (Suez Canal Surcharge): Charge for vessels transiting the Suez Canal
  • PTF (Panama Canal Transit Fee): Charge for vessels transiting the Panama Canal
  • CAF (Currency Adjustment Factor): Adjustment for currency exchange rate fluctuations
  • AMS (AMS Fee): US Customs advance manifest filing fee
  • ENS (Entry Summary Declaration): EU Customs advance manifest filing fee
  • ISF (Importer Security Filing): US "10+2" importer security filing requirement
  • DOC (Documentation Fee): Charge for preparing shipping documents
  • HLA (Heavy Lift Additional): Surcharge for overweight cargo requiring special handling
  • LLA (Long Length Additional): Surcharge for overlength cargo
  • WAR (War Risk Surcharge): Insurance surcharge for vessels transiting high-risk areas
  • CFS (Container Freight Station Charge): Charges for LCL cargo handling at freight stations
  • ISPS (ISPS Security Charge): Port security compliance charge
  • DEM (Demurrage): Charge for keeping containers at port beyond free time
  • DET (Detention): Charge for keeping containers outside port beyond free time

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Frequently asked questions

What is BAF in shipping?

Fuel cost adjustment based on bunker price fluctuations