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ZH When you receive quotes from the carrier or Forwarder, many shippers are usually only interested in lines Ocean Freight (O/F) that ignore the line charge below. Fact, shipping rates sea total (Total Cost) often include a lot of extra fees (Surcharges) can account for up to 30-40% of the total cost. Understand the types of free will help you avoid being dynamic on a budget.
1. Charge fluctuations in fuel (BAF – Bunker Adjustment Factor)
This is the charge carriers collected to compensate for the volatility of world oil prices. Shipping rates sea usually offered (offer) over a period of time, but the oil price changes daily. BAF (or sometimes called FAF) helps carriers do not suffer losses when fuel prices spike.
2. Fee rate fluctuations (CAF – Currency Adjustment Factor)
Sea freight is usually charged in USD. However, the carrier multi-national operations and incur costs in many different coins. CAF is applied to offset the risk variances exchange rate against the DOLLAR. In some glands, such as the European free this fairly common.
3. Charge imbalance containers (CIC – Container Imbalance Charge)
Vietnam is a country export to Usa, EU, but the trade deficit from China. This leads to a situation of excess containers in the U.s., but lacking the shell in Asia. Carriers must pay for shipping empty shell of where there is demand. Free CIC is calculated on shipping rates sea to offset the cost of shipping this shell. This fee is usually collected in the peak season.
4. Other surcharges (Peak Season Surcharge – PSS, LSS,...)
In the peak season (Christmas, lunar new year), top soaring leads to a lack of seats, carriers will be collecting more free PSS. In addition, nowadays there are also free LSS (surcharge reduce emissions of sulfur) to comply with environmental protection IMO 2020.
Epilogue:
Shipping rates sea not only is a fixed number. It is the totality of freight main and the type of charge fluctuations in the market. When negotiating contracts, shipping, business need requires clearly listed “Subject to surcharges” (The charge comes) to calculate the exact cost of goods sold (COGS).
