Common types of marine surcharges

2020-08-06|144 views|Encyclopedias

Marine surcharge refers to the additional charges charged by the ship in addition to the basic rate for the compensation of the increased expenses or economic losses incurred by the ship in transporting the goods due to various reasons of the ship, the goods, the port and other aspects. What are the sea freight surcharges?

1. Local export surcharge (ORC)
It is generally used at various departure ports in South China. The destination ports are North America, Central and South America, Europe and North Africa. Among them, ORC and THC charging standards are different, and different shipping companies have different charging standards.

2. Terminal handling charges(THC)
It can be further divided into Original Terminal Handle Charge (OTHC) and Destination Terminal Handle Charge (DTHC).

3. Port Congestion Surcharge (PCS)
When the port is crowded or particularly busy, the waiting time and schedule of the ship will be extended, and the toll fees such as tugboat fees may also increase, which will cause a substantial increase in transportation costs. In order to make up for this cost loss, shipping companies will charge shippers a surcharge for port congestion. It is generally used by certain ports in Israel, India and the routes of Central and South America.

4. Direct flight surcharge (DDC, IAC)
In the terms of DDU, DDP, etc., this fee is only borne by the seller / shipper shipper, otherwise the buyer / consignee consignee pays. Generally used in the US and Canada routes.

5. Comprehensive Rate Rising Surcharge (GRI)
Generally used in Europe, South America routes, and US routes. Due to various reasons such as ports, ships, fuel oil, cargo or other aspects, the shipping costs of shipping companies have increased significantly. Shipowners have to increase the comprehensive rate to increase the surcharge to compensate for these increased expenses.

6. Container Service Charge (CSC)
Container or counter service fee.

7. Cleaning Charge (CC)
Also known as cleaning labor, cleaning charge. This charge is generally more common in bulk cargo transportation.

8. Container imbalanced surcharge (CIC)
This fee is due to the imbalance of trade volume or seasonal changes resulting in the imbalance of cargo flow and containers. The shipping company charges an additional fee to compensate for the cost of shipping empty containers.

9. Surcharge for heavy weight and extra length (HLA, LLA)
It refers to a piece of cargo whose weight and length exceed a certain standard, require special equipment or special operations, loading and unloading operations are more difficult, or require special treatment on the ship's stowage, an additional fee charged to compensate for the increased operating costs.

10.Bunker Adjustment Factor(BAF)
Most routes have, but the standards are different.

11. Emergency Bunker Surcharge (EBS)
It is a surcharge of sea freight, which is generally used on Australian routes and settled in US dollars. In the case of FOB terms, this fee should be borne by the receiver, not the shipper, because EBS is not a local FOB fee. This fee can be paid or prepaid.

12. Fuel Adjusting Factor (FAF)
Generally used for Japan routes.

13. Currency Adjustment Factor (CAF)
When the currency of freight charges depreciates significantly, the shipping company will suffer greater losses due to currency depreciation. In order to make up for the loss, the shipowner will pass on the loss to the shipper / consignor by adding a currency depreciation surcharge.

14.  Entry Summary Declaration(ENS)
This is the advance manifest rule of the customs of the EU countries. Since January 1, 2011, the EU has enforced the "declaration of manifests" rule for all cargo going to or passing through EU ports. This rule applies to all 28 EU member states, as well as Norway, Switzerland, and Turkey.

15. Suez Canal Surcharge (SCS)
The routes from Asia, Oceania, East Africa and other regions to Europe basically pass through the Suez Canal. When the ship passes through the Suez Canal, the shipping company needs to pay a certain navigation fee to the canal authority. This cost is charged by the ship owner through the Suez Canal surcharge.

16. Panama Canal Surcharge (PTF)
When a ship passes through the Panama Canal, the shipping company needs to pay a certain navigation fee to the canal authority. It is generally used by American routes and Central and South American routes.

 17. Peak Season Surcharge (PSS)
Most routes may be temporarily used during the peak transportation season, and April to November of each year is generally the peak season for world freight.

18. Emergency Cost RecoverySurcharge (ECRS)
Bad weather conditions cause a significant increase in ship transportation and operating costs, etc., and so on, this fee will be charged.

19. Entry Fee for Automatic Manifest System (AMS)
Used in the US-Canada route, unique to the US-all cargo to the US or transit to other countries or regions via the US must be AMS declared (24 hours before shipment) AMS is also called 24-hour manifest system / US anti-terrorism manifest system.

20. Entry fee for automatic manifest system (ACI)
According to the regulations of Canadian Customs, all goods that arrive in Canada or are transferred to other countries via Canada must be declared to Canadian Customs 24 hours before shipment, which is very similar to the AMS in the US.

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