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

An All-In Rate combines the base ocean freight rate with all surcharges (BAF, CAF, PSS, etc.) into a single quoted price, simplifying budgeting and comparison between carriers.

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

BAF (also called Fuel Surcharge or EBS) is a variable surcharge carriers add to the base rate to recover the cost of fuel — it fluctuates based on global oil prices and route.

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

PSS is a temporary surcharge carriers impose during periods of high demand (e.g., pre-Christmas rush or post-Chinese New Year) when vessel space is tight and costs are elevated.

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 GRI is a carrier-announced increase in the base ocean freight rate, typically applied at a fixed date and expressed as a dollar amount per TEU or FEU.

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

LCL freight is rated on a Weight/Measure (W/M) basis — the rate applies per CBM of volume or per 1,000 kg of weight, with the higher figure used, reflecting whichever takes more physical space on the vessel.

Ocean Sea Freight Practice Test

Ocean Sea Freight Practice Test

Ocean Sea Freight Freight Rates and Surcharges