1. What Are Shipping Surcharges?
Shipping surcharges are additional fees charged by shipping lines on top of the basic ocean freight, used to cover variable factors such as fuel costs, peak season supply and demand, and currency fluctuations.
The key point is: Surcharges are not non-negotiable. Understanding the reasons behind each surcharge and the room for negotiation can give you an advantage in freight negotiations.
2. Detailed Breakdown of Major Surcharges
BAF (Bunker Adjustment Factor)
| Item | Details |
|---|
| Reason | Fuel price fluctuations |
|---|
| Negotiability | 🟡 Limited |
CAF (Currency Adjustment Factor)
| Item | Details |
|---|
| Reason | Exchange rate fluctuations between the settlement currency (USD) and the shipping line's cost currency |
|---|
| Calculation Method | 5%-15% of freight |
| Negotiability | 🟡 Limited |
PSS (Peak Season Surcharge)
| Item | Details |
|---|
| Reason | August to October peak shipping season, with container space in high demand |
|---|
| Negotiability | 🔴 Difficult |
| Coping Strategy | Avoid peak season shipments / Sign long-term contracts early |
EBS (Emergency Bunker Surcharge)
| Item | Details |
|---|
| Negotiability | 🟡 Limited |
THC (Terminal Handling Charge)
| Item | Details |
|---|
| Nature | Pass-through of terminal fees charged to shipping lines |
|---|
| Standard | Standardized rates at each port |
| Negotiability | 🔴 Fixed |
3. Surcharge Comparison Table
| Surcharge | Reason | Negotiability |
|---|
| BAF | Oil price fluctuation | 🟡 Limited |
|---|
| CAF | Currency fluctuation | 🟡 Limited |
| PSS | Peak season shortage | 🔴 Difficult |
| EBS | Oil price surge | 🟡 Limited |
| THC | Terminal operations | 🔴 Fixed |
| ORC | South China terminal fee | 🔴 Fixed |
| DOC | Documentation processing | 🟢 Negotiable |
| SEAL | Seal fee | 🟢 Negotiable |
4. Negotiation Strategies
Most Effective: Demand an ALL-IN Rate
Instead of debating each surcharge one by one, request an all-inclusive price.
Bargaining Power Based on Volume
| Monthly Volume | Bargaining Power |
|---|
| <20TEU | Go with market rates |
|---|
| 20-50TEU | Can request a 5%-10% freight discount |
| 50-100TEU | Can negotiate long-term contract rates |
| >100TEU | Can request THC/customs clearance fee reductions |
Have cargo to ship? Send the product name, weight, volume, and destination port to Bofeng Logistics. We provide an ALL-inclusive price quote – one flat rate with no hidden fees. With 20 years of international shipping experience.
Get a Quote: 13075678958 | info@zhbfwl.com
