General Guide to Port Fee Composition

In international shipping, goods passing through ports incur a series of local charges. Understanding the composition and calculation methods of these charges helps cargo owners reasonably budget logistics costs and review fee invoices. This article provides a systematic explanation of common port charges.

Note: This article is an explanation of charge composition and does not list specific price figures. There are differences in specific rates between ports and shipping companies. Actual costs shall be based on the quotation provided by the freight forwarder at the time of booking.

1. Container-Related Charges

Terminal Handling Charge (THC)

The Terminal Handling Charge (THC) is the fee charged by the port terminal for loading, unloading, stacking, and moving containers. THC is usually calculated based on container type (20GP/40GP/40HQ). THC standards may vary between different vessel types and ports; the specific amount should be confirmed at the time of booking.

Documentation Fee

The Documentation Fee is charged by the shipping company or freight forwarder for handling transport documents such as bills of lading and cargo manifests. It is generally charged per shipment.

Booking Fee

The Booking Fee is charged by the shipping company after accepting a booking request. It is usually calculated based on container type.

Equipment Interchange Receipt Fee (EIR Fee)

The EIR Fee is the cost incurred when processing the Equipment Interchange Receipt as containers enter or leave the terminal yard.

2. Customs Declaration and Inspection Charges

Customs Declaration Fee

The Customs Declaration Fee is a service charge collected by customs brokers for handling export or import customs declaration procedures. This fee is influenced by factors such as cargo type, declaration complexity, and whether inspection is required, and should be determined by inquiry based on specific cargo circumstances.

Commodity Inspection Fee

Goods subject to statutory inspection (such as food, cosmetics, toys, etc.) must declare for inspection to customs during import or export, incurring corresponding inspection costs.

Inspection Fee

When customs conducts an inspection on declared goods, an inspection fee may arise. Inspection methods include machine scanning and manual inspection, with different costs for different methods.

3. Trucking Transport Charges

Trucking fee refers to the transport cost of moving a container from the port terminal to the consignor's/shipper's factory handling costs. Calculation basis usually includes transport distance, container type, and whether special vehicle types are needed.

4. Port Sundry Charges

Port Construction Fee

The Port Construction Fee is a special port construction levy imposed according to national regulations, usually calculated based on cargo type or container type.

Port Security Fee

The Port Security Fee is collected by the port to comply with the ISPS Code (International Ship and Port Facility Security Code).

5. Other Possible Charges

• Amendment Fee: Incurred when modifications are needed after bill of lading issuance.
• Telex Release Fee: Incurred when using telex release (Telex Release).
• Manifest Information Fee: Costs for manifest data transmission and processing.
• Detention / Demurrage Charge: Costs incurred when containers are used beyond the free time at the terminal yard.
• Overnight Surcharge: Fee incurred due to consignee's reasons causing the truck to wait overnight at the factory and usually for loading/unloading.

6. How to Get an Accurate Quotation

The specific amounts of port charges are affected by the following factors:

• Port Variation: Different ports and terminals have different tariff standards.
• Container Variation: Fee standards for 20GP, 40GP, 40HQ are different.
• Cargo Variation: Rates differ for general cargo, dangerous goods, and reefer cargo.
• Carrier Variation: Different shipping companies have different fee standards.
• Time Variation: Port rates may be adjusted with market changes.

Recommended Approach: Request a detailed fee breakdown from the freight forwarder when booking. Confirm whether charges (THC, DOC, booking fee, etc.) are included in the ALL-IN flat rate. Upon arrival, reconcile the statement with the provided quotation for items billed.

Bofeng Insights

In our daily operations, the fee questions our clients most commonly focus on are the following:

Meaning of ALL-IN Flat Rate: Many shipping companies quote ALL-IN rates, but some surcharges like Peak Season Surcharge or Bunker Adjustment Factor might not be included. It is recommended to explicitly ask when confirming a price: "What items does this price include?" and consequently understand feasible advice in general. It is crucial to ask also: "separates allocation of fees for all items..." or ' What cost does it not include?

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