For the same shipment on the same route, quotes can still differ by a noticeable margin, and the reason is often the handover method. Container ocean freight is not a single overall figure; it is assembled from several components that can be examined separately: change the handover method, and some of those components fall to someone else. This article first breaks down the components of freight charges, then examines which segments each of the nine handover combinations includes.
The Six Basic Components of Ocean Freight Charges
Following the sequence in which cargo moves from the place of dispatch to the place of receipt, the full freight charge can be broken down into six components. Different handover methods are simply different combinations of including or excluding these six components.
| Component | Common English Term | Corresponding Stage | Usually Paid By |
|---|---|---|---|
| Origin inland haulage / pre-carriage | Inland haulage / Pre-carriage | Shipper's factory to origin port container yard | Shipper |
| Origin CFS service fee | Origin CFS charge | LCL consolidation and stuffing operations at origin port | Shipper (for LCL) |
| Origin port container yard service fee | Origin THC | Receiving containers at CY, storage, loading on board | As agreed, usually prepaid |
| Ocean freight | Ocean freight | Ocean carriage from origin port to destination port | As agreed by trade term, prepaid or collect |
| Destination port container yard service fee | Destination THC | Discharge, storage, release of containers | As agreed, usually collect |
| Destination CFS service fee | Destination CFS charge | Deconsolidation and distribution at destination port | Consignee (for LCL) |
| Destination inland haulage / delivery | On-carriage / Delivery | Destination port container yard to consignee's factory | Consignee |
In addition, there are various surcharges (bunker, peak season, port congestion, etc.) and documentation fees. These are independent of the handover method and are charged according to the standards published by the carrier for the route in the current period. For the composition of surcharges, see Common Ocean Freight Surcharges and Their Meanings.
Cost Comparison of Nine Handover Combinations
Arranging handover methods by "origin handover point—destination handover point" shows that each additional handover point adds a corresponding operation or transport charge. In the table below, "✓" indicates that the combination includes that segment.
| Handover Method | Handover Point | Origin inland haulage | Origin CFS | Origin THC | Ocean freight | Destination THC | Destination CFS | Destination inland haulage / delivery |
|---|---|---|---|---|---|---|---|---|
| FCL/FCL | Door-Door | ✓ | — | ✓ | ✓ | ✓ | — | ✓ |
| FCL/FCL | Door-CY | ✓ | — | ✓ | ✓ | ✓ | — | — |
| FCL/FCL | CY-CY | — | — | ✓ | ✓ | ✓ | — | — |
| FCL/FCL | CY-Door | — | — | ✓ | ✓ | ✓ | — | ✓ |
| LCL/FCL | CFS-Door | — | ✓ | ✓ | ✓ | ✓ | — | ✓ |
| LCL/FCL | CFS-CY | — | ✓ | ✓ | ✓ | ✓ | — | — |
| FCL/LCL | Door-CFS | ✓ | — | ✓ | ✓ | ✓ | ✓ | — |
| FCL/LCL | CY-CFS | — | — | ✓ | ✓ | ✓ | ✓ | — |
| LCL/LCL | CFS-CFS | — | ✓ | ✓ | ✓ | ✓ | ✓ | — |
There is a simple rule for reading this table: If the starting point is Door, there is an additional origin inland haulage segment; if the starting point is CFS, there is an additional origin CFS operation; if the ending point is Door, there is an additional destination inland haulage/delivery segment; if the ending point is CFS, there is an additional destination CFS operation. Ocean freight and the terminal handling charges at both ends are the common parts included in all combinations.
Why the Handover Method Determines Who Bears the Costs
The handover point is also the point at which costs and responsibility transfer. Costs and risks incurred before the handover point are borne by the handing-over party, and those after are borne by the receiving party. Therefore, under CY-CY, the cargo owner delivers the container to the CY itself and picks it up from the destination port itself, so the inland haulage at both ends is naturally borne by the cargo owner; under Door-Door, the carrier includes the trucking at both ends, so this portion of the cost appears in the quote.
For this reason, the handover method must be clearly stated at the time of booking and reflected consistently in the booking note, dock receipt, and bill of lading. If the records in these three places are inconsistent, disputes will arise over charging and allocation of responsibility.
Practical Tips
- Specify the handover point in the quote: Saying only "to Los Angeles" is not enough; specify whether it is CY-CY or CY-Door. Otherwise, who arranges the trucking at both ends and whether the cost is included can easily lead to each side telling a different story afterward.
- Distinguish prepaid and collect: Origin port charges are usually prepaid, and destination port charges are usually collect, subject to the trade term and booking agreement. For the cost boundary under CIF and FOB, see Foreign Trade Settlement Methods: A Complete Guide to T/T, L/C, D/P, and D/A.
- Ask clearly about destination port charges in advance: Storage charges, deconsolidation charges, and trucking charges at the destination port are collected by the local agent according to local standards and are a separate system from the origin port quote. The shipper can explain this to the consignee in advance to avoid an expectation gap at the time of receipt.
Data note: This article describes the general composition of container ocean freight charges. The names, billing units, and bearing parties of specific items are subject to the quotation and bill of lading terms issued by the shipping line and freight forwarder.
Further Reading
- Container Handover Methods: FCL/FCL, FCL/LCL, LCL/LCL, and LCL/FCL Explained
- The Complete Container Flow: Full Lifecycle from Empty Container Pickup to Empty Container Return
- Terminal Operations Process: The Full Process of Port Entry, Storage, Loading, Discharge, and Container Pickup
- Weight Limits: Country/Carrier Weight Limit Policies and Overweight Fees
- Container Usage Fees and Demurrage: Free Container Use Period and Detention Charges Explained
Frequently Asked Questions
Why is there a "CFS charge" in an LCL quote?
LCL cargo must be consolidated and stuffed by a CFS at the origin port with cargo from multiple shippers, and at the destination port it must be deconsolidated and distributed. These two operations are the CFS service charges. For FCL cargo, the shipper stuffs the container itself and the consignee unstuffs it itself, so these two operations do not occur, and these two charges do not appear in the quote.
For the same shipment, can changing the handover method save money?
Yes, but what is saved is the portion you bear yourself. Changing CY-Door to CY-CY removes a destination inland haulage/delivery charge from the quote, at the cost of the consignee having to arrange destination port container pickup and inland transport itself. Whether it is worthwhile depends on the destination trucking cost and the consignee's own operational capability; you cannot look only at the freight number.
To confirm the handover mode, the trucking arrangement at either end or the weight limit for a specific route, submit an enquiry online and the Bofeng Logistics team will assess it against your actual cargo and trade lane.
This article was prepared by the Bofeng Logistics team and reviewed in October 2026. Handover modes, free time, weight limits and terminal practice change with carrier and terminal policy; refer to the booking confirmation, bill of lading terms and current terminal rules for specifics.
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