From freight charges, to local costs, to surcharges applied in various circumstances by shipping companies, and in addition to the cost of the ocean freight itself. There is an important variety of factors that must be taken into account when calculating the cost of an import or export operation. But what is the difference between these costs? What is the difference between a local surcharge and a freight surcharge?

It should be noted that many of these costs may appear integrated with others in a sea freight quote, when we talk about different types of Incoterms, but it is important to understand all the aspects that influence the final cost of transport.

This is the main cost of maritime transport. It is derived from the costs incurred in transporting a container from the port of loading (POL) to the port of discharge (POD) and depends mainly on the different shipping lines and the route chosen.

These surcharges are applied by shipping lines to compensate for different situations. From fuel price rises to problems caused by excessive demand in high season, some of the most common shipping surcharges are the following:

Surcharge charged to compensate for fluctuations in the price of fuel.

Applies according to the number of TEUs and may vary depending on the route.

Emergency surcharge to compensate for fuel price increases. Often applied at the last minute, unlike BAF which would be a standard surcharge mechanism.

Also varies according to container type and route.

Surcharge for exchange rate fluctuations. The CAF is applied to compensate for the risks of operating with certain currencies subject to strong fluctuations.

It is usually charged as a percentage applied to the basic ocean freight price

Surcharge normally applicable during peak shipping months that is applied by shipping lines to compensate for their increased operational costs.

It has a limited duration and is restricted to the peak season.

In addition, there are a wide variety of surcharges applied to cargoes of irregular sizes and weights, certain situations, etc.

Surcharge normally applicable to shipments to and from a country or region in which exists a conflict or the risk of it. This also can be appliable to shippments between other conutryes and be applied to compensate operational costs od the shipping company due to the conflict

It has a limited duration and is calculated per shipment

Finally, costs may also be affected by the shipping route, especially if it passes through certain areas and/or channels which impose additional charges for the use of facilities.

Within this category you can find both freight charges and local charges, all of them related to the port of loading/discharge.

This freight charge refers to the cost that the terminal reports to the shipping company for managing the loading and unloading of the container on the vessel, in addition to other organisational tasks.

We will usually see it indicated as THC, although the concept THD/THCD may also appear, as although it is a freight surcharge dependent on the POL/POD, it can be settled for payment both at origin and destination, so that on certain occasions it is necessary to distinguish between Terminal Handling Charge and Terminal Handling Charge Destination.

Local charge - Refers to the cost that the shipping company reports to the shipper for the use of the container on the days prior to loading and/or after unloading. We could say that it is the cost of "renting" the container from the shipping company to the shipper. Normally there is a free period both prior to loading and after unloading, so this surcharge would only apply if these times are exceeded. This surcharge is usually invoiced per container and port and the shipping company will normally charge the cost to the Shipper (local cost at origin) and the consignee (local cost at destination) respectively.

Local Charge - Refers to the cost that the terminal passes on to the shipping company for the physical use of a space to "store" the container from the time it enters the terminal until it is loaded onto the ship and vice versa, from the time it is unloaded at destination until it is picked up from the terminal. We could say that it is the cost of "renting" the "parking space" for the container. Normally there is a free period both prior to loading and after unloading, so this surcharge would only apply if these times are exceeded. This surcharge is usually invoiced per TEU and port, and the shipping company will normally charge the cost to the Shipper (local cost at origin) and the consignee (local cost at destination) respectively.

This surcharge only applies to maritime groupage shipments. It is charged by the consolidator for the extra time the groupage or LCL goods remain in the warehouse.

Customs clearance is the process by which customs authorities check that documentation and goods are in order and cargo can enter or leave a country.

The customs fee is charged at each port of loading and discharge respectively as a local charge to cover the administrative costs of preparing the paperwork and conducting customs clearance. It varies from country to country

T3 is a charge levied by ports for the use of port facilities and is charged locally for both imports and exports. Its application is set out in the State Ports Act.

There are also local charges that pertain to and must be paid at origin, in addition to the charges that must be paid at customs to shipthe goods such as duties and taxes.

These can be both freight charges and a local origin charges specific for the origin of your shipment.

These charges vary depending on the shipping line and route, as well as different regulations that may differ from country to country.

Depending on the country of origin and destination of your shipment, and the way your shippment in handled before entering to the port, you may encounter other origin charges such as:

There are also local charges that pertain to and must be paid at destination, in addition to the charges that must be paid at customs to release the goods such as duties and taxes.

These can be both freight charges and a local destination charge specific to the destination of your shipment.

These charges vary depending on the shipping line and route, as well as different regulations that may differ from country to country.

Depending on the country of origin and destination of your shipment, you may encounter other destination charges such as:

🌟It is important to remember that freight surcharges may be payable at origin or at destination depending on the modality of payment for the shipment, and that local charges associated with a port will rarely be paid in a port other than the one to which it applies🌟