One forwarder quotes 2,000 dollars for a container and another quotes 2,800. Neither is lying. Freight pricing follows a consistent logic in every mode, and once you can see the components you can tell which quote is cheaper and which is merely shorter.
The short answer
Every freight rate is a base rate plus surcharges plus local charges at both ends. The base rate is what people quote and the only part that is really negotiable. The local charges are where quotes diverge, because they are the part a forwarder can leave out and still call it a quote.
Ocean FCL
Priced per container, by size and type, not by what is inside it. A 40ft container that is half empty costs the same as a full one, which is why utilisation is the biggest lever a shipper controls.
- Base ocean rate, per TEU or FEU, from carrier tariffs or a negotiated agreement
- BAF for fuel, republished monthly or quarterly
- CAF for currency movement, typically a percentage of base
- PSS in tight periods
- Origin and destination THC, set by the terminals
- Documentation fee, per bill of lading
- Inland haulage at either end, if door service
Reefer, out-of-gauge and hazardous cargo carry their own uplifts, which can be large.
Ocean LCL
Priced per W/M, meaning weight or measure, whichever is greater. One cubic metre is treated as equivalent to one metric tonne, so you pay on volume unless your cargo is denser than 1,000 kg per cubic metre.
Two things make LCL more expensive per unit than people expect. The minimum charge, usually one cubic metre, means a 0.3 cbm shipment pays for 1.0. And the fixed CFS handling and deconsolidation fees at both ends do not scale down. This is why there is a crossover volume, typically somewhere around 13 to 15 cbm, above which a 20ft container is cheaper than the LCL equivalent. Ask your forwarder to price both when you are near it. FCL vs LCL covers the decision.
Air
Priced per kilogram of chargeable weight, the greater of actual and volumetric weight, where volumetric is length times width times height in centimetres divided by 6,000.
The distinctive mechanic is that rates step down at break points, commonly +45, +100, +300, +500 and +1000 kg, so a shipment just under a threshold can cost more than a heavier one just over it. On top of the base sit the fuel and security surcharges, both per kilo, plus airway bill and handling fees. How air freight pricing works covers this in detail.
Road
- FTL, full truck load: a flat rate for the vehicle regardless of fill, driven by distance, lane balance and equipment type. Backhaul availability matters enormously: a lane with return freight prices very differently from one where the truck comes back empty.
- LTL, less than truck load: priced per pallet, per 100 kg, or per loading metre, the metres of trailer floor your freight occupies. Loading metre is the one that surprises people, because non-stackable cargo consumes floor it does not appear to need.
- Accessorials: tail-lift, waiting time beyond free time, timed delivery windows, residential or restricted access, and re-delivery.
What actually moves rates
- Capacity against demand. The dominant factor in ocean and air. New vessel deliveries, blank sailings, and how much bellyhold capacity passenger schedules provide.
- Fuel. Passed through explicitly, so it moves surcharges rather than base rates.
- Trade imbalance. The headhaul direction carries the price; the backhaul is often a fraction of it.
- Season. Pre-Lunar New Year and the Q3 to Q4 peak.
- Routing disruption. Longer routings absorb capacity as well as adding days, which lifts rates independently of demand.
- Congestion. Ships waiting are ships not carrying.
Using this when you negotiate
- Negotiate the base rate and the forwarder's own fees. Terminal handling and published surcharges are not where the room is.
- Ask for free time. Additional days at destination are frequently worth more than a rate reduction, and they are easier to obtain.
- Compare all-in totals for identical scope, not headline rates.
- Improve density before you improve price. Better packing changes chargeable weight and container utilisation permanently, while a rate concession lasts until the next tender.
- Know your crossover points: LCL to FCL by volume, and air break points by weight. Both let you pay for slightly more than you have and spend less.
- Decide between spot and contract deliberately. Predictable recurring volume suits a tender; irregular or urgent cargo suits spot. See tender vs spot.
For the acronyms that appear on the invoice afterwards, freight surcharges decoded covers each one and which are worth challenging.
