Ocean Sea Freight Freight Rates and Surcharges

Question 1

What does 'All-In Rate' mean in ocean freight pricing?

Accepted Answer

A single bundled freight rate that includes base ocean freight plus all applicable surcharges

Answer

A rate that covers door-to-door delivery including customs

Answer

A discounted rate for annual volume commitments

Answer

A spot rate available only on short notice

Question 2

What is BAF (Bunker Adjustment Factor) in ocean freight?

Accepted Answer

A fuel surcharge added to the base rate to account for fluctuations in vessel fuel (bunker) costs

Answer

A fee for booking containers on a vessel with slower transit speed

Answer

A penalty charge for rolling cargo to the next available vessel

Answer

A rate adjustment for changes in foreign exchange rates

Question 3

What is a 'Peak Season Surcharge' (PSS) in ocean freight?

Accepted Answer

A temporary surcharge added during high-demand shipping periods to offset increased costs

Answer

A long-term rate increase negotiated during annual contracts

Answer

A penalty for booking outside the standard booking window

Answer

A surcharge applied specifically to holiday-themed cargo

Question 4

What is 'GRI' (General Rate Increase) in ocean freight?

Accepted Answer

A periodic, across-the-board increase in base freight rates announced by carriers

Answer

A one-time surcharge for route-specific congestion

Answer

A rate adjustment based on cargo weight exceeding the container limit

Answer

An emergency fuel surcharge triggered by oil price spikes

Question 5

What is the 'CBM' (Cubic Meter) measurement used for in LCL freight pricing?

Accepted Answer

LCL rates are typically quoted per CBM or per 1,000 kg (W/M basis) — whichever is higher

Answer

CBM is used to calculate import duties for volumetric cargo

Answer

It determines the number of containers needed for a shipment

Answer

CBM sets the insurance value for cargo in transit

Question 6

What is a 'THC' (Terminal Handling Charge) in ocean freight?

Accepted Answer

A fee charged by the terminal for handling containers during loading and discharge at the port

Answer

A carrier surcharge for containers with hazardous materials

Answer

A charge for transshipping containers at an intermediate port

Answer

A fee for port congestion delays affecting vessel scheduling