Shipping surcharges are fees collected in addition to ocean freight shipping cost, to pass on to customers various additional or highly variable expenses incurred by carriers. They may include fuel costs, carbon taxes, documentation fees, terminal handling fees, and more. As a shipper, it's essential to understand these surcharges to budget correctly and ensure you're getting the best value for your money. Here we explain those you are most likely to encounter: 

 

• Fuel Surcharges 

As the market price of fuel fluctuates constantly, it's no surprise that fuel surcharges are a common addition to shipping costs. These charges are adjusted by shipping companies based on the changes in fuel prices. 

• Carbon Tax Surcharges 

As governments around the world look for ways to reduce their countries’ carbon footprints, many are introducing carbon taxes on industries that produce greenhouse gas emissions such as energy, manufacturing, and transportation. Carbon taxes are levied by governments to encourage consumers and businesses to make more environmentally responsible choices and reduce their use of fossil fuels to cut related emissions. 

• Terminal Handling Charges 

Terminal handling charges (THC) are charged by terminals for the handling of containers at both the port of loading and the port of discharge. THC fees are typically billed to the shipper or consignee of the container, and can vary depending on the terminal and location. Therefore, it is important for shippers and consignees to be aware of these fees when planning and budgeting for shipments. 

• Canal Transit Fees 

Canal transit fees are typically charged for the passage of a vessel through a canal to cover the cost of maintaining and operating the canal. The fees can vary depending on factors such as the size of the vessel, the cargo being transported, and the distance traveled through the canal.  

 

Keep on top of your surcharges with FreightSmart 

After the what and the why above, the big remaining question is: how much? With so many different surcharges to consider, it can be difficult to stay on top of your shipping costs.  

That’s where OOCL’s online platform, FreightSmart, comes in. The quotation on E-Spot will include a breakdown of applicable surcharges (where known), including terminal handling fees, fuel surcharges, and carbon tax surcharges. You may also check the price breakdown anytime on FreightSmart’s Control Tower. 

With FreightSmart, you can be confident that you're getting a good upfront indication of your shipping costs.