Why Is Your Freight Invoice More Than the Rate You Were Quoted?
Select your trade lane and mode to see which surcharges apply and their typical ranges.
Every Freight Surcharge Explained
Freight invoices can have 10–20 line items beyond the base ocean or air freight rate. Here is what each one means.
BAF — Bunker Adjustment Factor
Compensates carriers for fluctuations in fuel (bunker) oil costs. Recalculated quarterly or monthly. One of the largest surcharges — can equal or exceed the base freight rate on some lanes. Also called BAS (Bunker Adjustment Surcharge) or FAS (Fuel Adjustment Surcharge). Non-negotiable for the most part, but some large shippers lock it via rate agreements.
Negotiable: Partially
GRI — General Rate Increase
A temporary rate increase applied by carriers at peak seasons (pre-Golden Week, pre-Christmas, etc.) or when they feel market rates are too low. Announced typically 30 days in advance. GRI announcements don't always stick — actual rate depends on market. GRIs are on top of existing rates.
Negotiable: Yes — with volume commitments
PSS — Peak Season Surcharge
Applied during peak shipping seasons — typically July to October for Asia-US/Europe lanes ahead of the holiday retail season. Separate from GRI. Ranges from $100–$600 per TEU depending on the lane and year.
Negotiable: Partially
THC — Terminal Handling Charge
Charged at both origin and destination ports for moving the container between the terminal and the vessel. Set by the port/terminal operator — not the carrier. Both origin THC and destination THC apply. Also called ORC (Origin Receiving Charge) at origin in some markets.
Negotiable: No — set by port authority
CAF — Currency Adjustment Factor
Compensates for exchange rate fluctuations between the carrier's base currency (usually USD) and local currencies. Calculated as a percentage of the base rate. Rarely significant on USD-denominated trade lanes but can be notable on lanes involving weaker currencies.
Negotiable: No
ISF — Importer Security Filing
US Customs requirement (also called 10+2). Importers must file specific cargo and shipper data 24 hours before loading at origin port for all cargo entering the US by sea. Failure results in $5,000 penalty per violation. The ISF filing fee is charged by the customs broker — typically $25–$50 per shipment.
Negotiable: Yes — broker fee only
AMS — Automated Manifest System
US and Canadian requirement for carriers to transmit cargo manifest data to customs before arrival. The AMS fee covers the carrier's cost of filing. Also called AFR (Advance Filing Rules) for Japan. Typically $25–$35 per B/L.
Negotiable: No
ISPS — International Ship and Port Security
IMO security surcharge covering the carrier's cost of complying with the International Ship and Port Facility Security Code. Applied globally. Small amount — typically $3–$15 per TEU. Non-negotiable.
Negotiable: No
B/L Fee — Bill of Lading Fee
Carrier's fee for issuing the bill of lading. Covers document preparation and transmission. Typically $30–$75 per B/L. Some carriers charge additional fees for telex release (surrendering original B/L at origin), seaway bill issuance, or B/L corrections.
Negotiable: Yes — with volume
CIC — Container Imbalance Charge
Charged on trade lanes where containers are repositioned empty — typically on US/Europe imports from Asia (more cargo flows eastbound than westbound). Compensates carriers for moving empty containers back to origin. Also called ERS (Equipment Repositioning Surcharge).
Negotiable: Partially
Documentation Fee
Charged by the freight forwarder (not the carrier) for preparing and handling export/import documentation — commercial invoice checks, B/L verification, customs declaration preparation. Separate from the carrier's B/L fee. Typically $50–$150 depending on complexity.
Negotiable: Yes
Seal Fee
Carrier's fee for providing a customs seal for the container. Minor cost — typically $10–$25 per container. Non-negotiable but negligible.
Negotiable: No
War Risk Surcharge
Applied on trade lanes involving high-risk regions (Red Sea, Gulf of Aden, certain Middle East routes). Covers additional insurance and routing costs. Can increase significantly during active conflicts — Red Sea rerouting in 2024 added $500–$2,000 per TEU on Europe-Asia lanes.
Negotiable: No
LSS — Low Sulphur Surcharge
Implemented after IMO 2020 regulations mandated carriers switch to low-sulphur fuel (max 0.5% sulphur) or use scrubbers. The cleaner fuel costs more — this surcharge covers the difference. Now often bundled into BAF calculations rather than shown as a separate line item.
Negotiable: No
How to Read a Freight Invoice Line by Line
A typical FCL ocean freight invoice for an Asia-US shipment. Every line explained.
6 Ways to Reduce Freight Surcharges
Request all-in rates
Ask carriers and forwarders for all-in quotes that include BAF, THC, and all surcharges. Easier to compare. Some carriers offer all-in rates as a commercial proposition — useful for budgeting.
Book before GRI announcements
Carriers announce GRIs 30 days in advance. If you have flexibility, booking before the effective date locks you into pre-GRI rates. Monitor carrier announcements via Freightos, Xeneta, or directly from carrier websites.
Consolidate shipments to reduce per-B/L fees
B/L fees, documentation fees, AMS/ISF charges are per bill of lading. Consolidating multiple orders into one shipment and one B/L reduces these fixed per-document charges significantly.
Negotiate documentation fees with your forwarder
B/L fees, documentation fees, and handling fees are your forwarder's charges — not the carrier's. These are negotiable, especially with volume. Audit your invoices regularly; double-charging of B/L fees is common.
Use telex release to avoid destination handling
For trusted relationships, telex release (surrendering the original B/L at origin) eliminates the need for original document courier to destination — saving DHL costs and courier delays. The carrier issues an arrival notice directly to the consignee.
Check if surcharges are already in the rate
Some forwarder quotes include certain surcharges in the base rate. Always ask for a full breakdown and compare like-for-like. 'All-in rate including BAF and THC' is very different from 'base rate only'.