Freight Rates, Surcharges & Quotes

Almost always because the quote covered the base rate but not all surcharges. BAF, terminal handling at both ends, ISPS security, documentation fees, and destination charges are frequently quoted separately or omitted entirely. Ask for an all-in rate and confirm explicitly whether destination charges and duties are inside the figure — that is the only sound basis for comparing quotes.

Ocean FCL is priced per container, so cost per unit falls as you fill it. LCL and air freight are priced on chargeable weight — the greater of actual gross weight and a volume-derived figure — so light bulky cargo pays for the space it occupies. On top of the base rate sit surcharges for fuel, terminal handling, security, and any peak or congestion conditions.

Chargeable weight is the greater of a shipment's actual gross weight and its volumetric weight, and it is the figure your freight is billed on. Volumetric weight converts the space occupied into a weight using a carrier divisor — air freight conventionally treats one cubic metre as roughly 167 kilograms. Always measure packed dimensions including the pallet, because carriers re-measure and re-rate.

Demurrage is charged when a container sits in the terminal beyond its free time; detention is charged when you hold the container outside the terminal past the agreed return date. Avoid both by clearing customs before arrival where possible, negotiating longer free time at booking, booking collection early, and confirming the empty-return depot has capacity before you unpack.

Spot suits irregular volumes and soft markets; contract suits consistent volumes and tight markets. The decisive factor is often not price but allocation — contract rates usually come with a space commitment, and in a capacity crunch contract cargo loads while spot cargo is rolled. Most shippers of scale run a blend, keeping baseline volume on contract and using spot for peaks.

Generally yes, because carrier and forwarder liability is capped by weight rather than cargo value and is often a small fraction of what your goods are worth. Marine cargo insurance covers the actual value, typically at 110 percent of invoice. Check the clause set: Institute Cargo Clauses (A) is all-risks, while (B) and (C) are restricted named-perils covers that exclude a great deal.

It depends on the Incoterm. Under DDP the seller pays import duty and taxes; under every other rule, including DAP and DPU, the buyer is responsible for import clearance and duties. Note that a service sold as door-to-door is not automatically DDP — always confirm in writing whether duties and taxes are included in the price.