Upgrade to remove ads
Only $35.99/year

Understanding Sea Freight Rate Sheets

Terms in this set (75)

Accessorial charges
charges applied to the base traffic rate of base contract rate.
ex. bunkers, containers, currency, destination/delivery
Aden war risk surcharge
extra charge on goods in transit on the Gulf of Aden(Middle East, between Yemen and Somalia) crew risk compensation, cancellation, redeployment of vessel
Ad Valorem
Latin "according to value"
a duty applied as a % of the cargo's duty value
Al
"all inclusive"
total price to move cargo from origin to destination, inclusive of all charges
Arrival Notice
a notification by carrier of ship's arrival to the consignee(the person who is financially responsible... THE BUYER, the "Notify Party", and - when applicable- the "also Notify party"
BAF
"bunker adjustment factor" used to compensate steamship lines for fluctuating fuel costs.

sometimes called FAF "Fuel adjustment Factor"
Base rate
cost of shipping a container from one point to another. rates fluctuate frequently
BL fee
"bill of lading fee"
fee charged by the shipping line in form of receipt to consignee
BUC
"bunker charge"
extra charge sometimes added to steamship freight rates; justified by higher fuel costs. AKA FAF
CAF
"currency adjustment factor"
a charge, shown as a % of base rate applied to compensate ocean carriers of currency fluctuations
Cargo Data Declaration Fee
surcharge for the additional costs of declaring cargo info in advance to the EU authorities... for additional security and safety threats
Carrier
any person, in a contract of carriage, who performs the carriage by rail, road, sea, air, inland waterway or by a combination of such modes.
CBM (CM)
"cubic meter"
CFS
"container freight station"
a shipping dock where cargo is loaded(stuffed) into or unloaded(stripped) from container.
Chassis Utilization Surcharge
fee imposed for overload transportation
CL
"container load"
COD
"collect (cash) on delivery"
congestion
a situation where ships have to queue up and wait for a spot so they can load or offload
Container yard (CY)
materials- handling/storage facility used for completely unitized loads and/or emptying containers.
CSF
"carrier Security Fee"
charges for security of cargo during the shipment
customs
government agency charged with enforcing the rules passed to protect the country's import and export revenues
Customs filing fee
A fee paid to customs broker for arranging your customs clearance
Customs formalities
requirement referring to customs regulations including, documentation, security, info, and physical inspection responsibilities
CYRC
"container yard receiving charges"
DDC
"destination delivery charge"
a charge, based on container size, that is applied in many traffics to cargo. considered accessorial and is added to the base ocean freight.
covers crane lifts off the vessel, drayage(trucking service from an ocean port to a rail ramp) of the container within the terminal and gate fees at the terminal operation
demurrage
if you store a container at the port beyond free days, demurrage penalty charge is applied.
destination
the place to which a shipment is consigned or the place where the carrier actually turns over cargo to consignee or his agent
detention
a penalty charged againsy shippers or consignees for delaying carrier's equipment beyond allowed time.

Demurrage= cargo
detention=equipment
DTHC
"destination terminal handling charge"
dutiable value
the amount on which an Ad Valorem or customs duty is calculated
EBS
"emergency bunker surcharge"
a surcharge added to the cost of freight to cover fuel costs
EIS
"equipment imbalance surcharge"
surcharge on an ocean freight rate, imposed by shipping lines.
ENS
"entry summary declaration"
electronic declaration of goods being carried into the customs territory of the community
Environmental Fee Destination
environmental surcharges imposed by the destination port. covers many things such as hydrocarbon spill cleanup costs, etc.
ERR
"emergency rate restoration"
a surcharge added to the cost of freight to cover increases in shipping costs.
ERS
"equipment repositioning surcharge"
fee when a shipper requests that the carrier make empty containers available that must be moved from one location to another
ETD
"estimated time of departure"
ETR
"estimated time of readiness"
ETT
"estimated time to travel"
FCL
"full container load"
forwarding fee
a fee charged for the service of a freight forwarding company
freight forwarder
a person who's business is to act as an agent on behalf of the shipper. frequently makes the booking reservation.
In the US, they are now licensed by the FMC as "ocean intermediaries"
FS
"fuel surcharge"
GAS
"gulf of Aden Surcharge"
GRI
"general rate increase"
Handling fee
fee for transporting, storing, or packaing
Hazardous surcharge
imposed for shipping hazardous materials or goods
HC
"high cube"
containers that are 9ft 6 inches high instead of the usual 8ft 6inches
ISF
"importer security filing"
a US customs and border protection (CBS) regulation requiring importers and vessel carriers to provide data electronically to CBP for in-bound ocean shipments. AKA 10+2
ISPS
"international ship and port security code"
responsibilities to government, shipping companies to detect security threats
LCL (LTL)
"less than container load" or "less than truck load"
the quantity of freight which is less than that required for the application of a container load rate
MT
"metric ton"
NBC
"new bunker charge"
NOx
"nitrogen oxide"
Ocean Rate
see base rate
origin
location where ship begins its movement
OWS
"over weight surcharge"
Piracy surcharge
a charge assessed to compensate shipping companies for increased costs associated with avoiding piracy and hijacking
POD
"port of destination"
POL
"port of loading"
Port Dues
fee charged by the harbor authority on ships using the port's facilities
port of entry
port where cargo is unloaded and enters the country
port of exit
place where cargo is loaded and leaves a country
PSS
"peak season surcharge"
Release fee
charged by the destination port to release cargo for further movement or action
SCS
"Suez Canal Surcharge"
used to compensate shipping companies for additional costs incurred due to transiting the Suez Canal(middle east)
Sea freight rate
base rate
SES
"special equipment surcharge"
Shiper
the person or company who is usually the supplier or owner of commodities shipped. AKA consignor
TAD
"transit accompany document"
document accompanying uncleared goods during transit from one authorized location to another.
THS
"terminal handling charge"
sometimes referred to as Capatazia, in particular in Brazil
terminal charge
charge made for a service performed in a carrier's terminal area
TEU
"twenty foot equivalent unit"
Wharfage
a charge assessed by a pier or dock owner against freight handled over the pier or dock against a steamship company
3PL
"third party logistics"
Sets with similar terms