Sea freight surcharges (Surcharge/Additional) are extra fees charged by shipping companies besides the basic freight rate. They are used to compensate for increased costs or losses caused by factors like ships, cargo, ports, fuel, etc. Surcharges vary in types and may be added or canceled as situations change. This guide sorts out 30 common sea freight surcharges to help you understand them clearly and avoid pitfalls.
30 Common Sea Freight Surcharges Explained
01 General Rate Increase (GRI) - General Rate Increase Surcharge
Commonly used for South America and US routes. Shipping companies charge GRI to compensate for rising transportation costs caused by ports, ships, fuel, cargo and other factors.
02 Peak Season Surcharge (PSS)
Most shipping companies charge this fee during the peak shipping season (usually April to November every year), similar to "Spring Festival price increases" in China, to cover increased operational costs in busy periods.
03 Emergency Bunker Surcharge (EBS)
A sea freight surcharge settled in US dollars. Under FOB terms, it should be borne by the consignee (not the shipper) as it¡¯s not a local FOB cost. It can be prepaid or collected. EBS is temporarily added when international crude oil prices rise sharply and shipping companies cannot adjust basic freight in time.
04 Terminal Handling Charge (THC)
Divided into OTHC (Origin Terminal Handling Charge) and DTHC (Destination Terminal Handling Charge), referring to terminal operation fees at the port of origin and destination respectively.
05 Original Receiving Charge (ORC)
Only applicable to ports in South China (mainly Guangdong). ORC and THC are mutually exclusive (only one is charged). It is for ocean routes departing from South China ports to North America, Central and South America, Europe, North Africa, etc. For routes to Southeast Asia, only THC is charged.
06 Port Congestion Surcharge (PCS)
Charged when ports are congested. Delays in ship waiting time, extended sailing schedules and increased port fees raise transportation costs, so shipping companies charge PCS to make up for losses.
07 Container Imbalance Charge (CIC)
Due to unbalanced trade volume or seasonal changes leading to unbalanced cargo flow and containers, shipping companies charge CIC to cover the cost of transferring empty containers.
08 Destination Delivery Charge (DDC)
Borne by the shipper under DDU/DDP terms; otherwise, borne by the consignee. For example, under CIF terms, the consignee bears all costs after the cargo crosses the ship¡¯s rail at the port of shipment, including DDC.
09 Heavy-Lift Additional (HLA)
Charged when a single piece of cargo exceeds a certain weight (standard varies by forwarder/shipping company, usually 2 tons, 3 tons or 5 tons). It covers costs of special equipment (e.g., heavy cranes) and operations. It is charged by weight and added once for each transshipment.
10 Currency Adjustment Factor (CAF/CAS)
When the currency for freight collection depreciates significantly, shipping companies charge CAF to compensate for losses caused by currency depreciation.
11 Long Length Additional (LLA)
Charged when a single piece of cargo exceeds a certain length (usually 9 meters for general cargo, over 6 meters for container cargo). It covers costs of special equipment and operations, with rates increasing by length.
12 Emergency Cost Recovery Surcharge (ECRS)
Also called "severe weather operation surcharge". Charged when bad weather significantly increases ship transportation and operation costs.
13 Container Service Charge (CSC)
A service fee for container operation and management.
14 Fuel Adjustment Factor (FAF)
Commonly used for Japan routes. Similar to EBS in essence, it is an additional fee charged when fuel prices rise sharply.
15 Entry Summary Declaration (ENS)
EU¡¯s advance manifest rule enforced since January 1, 2011. It applies to all cargo imported to, transited through or passing through EU ports, requiring advance manifest declaration.
16 Suez Canal Surcharge (SCS)
Charged for routes from Asia, Oceania, East Africa to Europe that pass through the Suez Canal. It covers the canal transit fee paid by shipping companies to the canal authority.
17 Panama Canal Transit Fee (PTF)
Charged for routes from the Far East and US West Coast to US East Coast that pass through the Panama Canal. It covers the canal transit fee paid by shipping companies.
18 Document Fee (DOC)
Two types: one charged by shipping companies (fixed RMB fee); the other charged by destination port agents (USD fee, varying by agent).
19 Automatic Manifest System (AMS)
Unique to US and Canada routes. All cargo to the US or transiting through the US must be declared to AMS 24 hours before loading (also called 24-hour manifest system/US anti-terrorism manifest system).
20 Temporary Additional Risks (TAR)
Similar to war surcharge, charged to cover risks and additional costs caused by temporary risks (e.g., war, regional instability).
21 Advance Commercial Information (ACI)
Regulated by Canadian Customs. All cargo to Canada or transiting through Canada must be declared to Canadian Customs 24 hours before loading, similar to US AMS.
22 Cleaning Charge (CC)
Also called cleaning labor fee. Common in bulk cargo transportation, covering the cost of cleaning the ship¡¯s hold.
23 Bunker Surcharge/Bunker Adjustment Factor (BAF)
Charged when fuel prices rise sharply, to compensate for increased fuel costs of shipping companies.
24 Transshipment Surcharge
Charged for cargo shipped to non-base ports that need transshipment. It includes transshipment fee and second-carrier freight.
25 Direct Additional
Charged when the cargo volume to a non-base port reaches a certain amount and the shipping company arranges direct sailing without transshipment.
26 Port Additional/Port Surcharge
Charged by shipping companies due to poor port equipment, low loading/unloading efficiency or other factors that increase operational costs.
27 Optional Surcharge
Charged when the shipper cannot confirm the discharge port in advance and requires to choose one port from two or more pre-proposed ports for unloading.
28 Deviation Surcharge
Charged when the normal navigation route is blocked and the ship has to detour to transport the cargo to the destination port.
29 Alteration of Destination Charge
Charged when the shipper requests to change the original destination port with the approval of relevant authorities (e.g., customs) and the shipping company.
30 Repeated GRI (General Rate Increase)
Same as GRI No.01, commonly used for South America and US routes to compensate for rising transportation costs.
