How to Quote Ocean Freight to Clients
Price too high and you lose the shipment. Price too low and you lose money. Here's how to find the sweet spot every time.
Quoting ocean freight is where your margin lives or dies. Most new forwarders either leave money on the table by quoting too conservatively, or lose clients by padding rates without understanding what the market will bear. This guide breaks down every cost component, markup strategy, and pricing format so you quote with confidence.
15–25%
Typical forwarder markup on ocean freight
48 hrs
Maximum quote response time before clients move on
60%
Of quotes lost due to slow response, not price
Anatomy of an Ocean Freight Quote
Every ocean freight quote has the same building blocks. Understanding each one is how you control your margin.
Ocean freight rate
The base rate from the carrier — your buying price. Quoted per container (FCL) or per CBM/revenue ton (LCL). This is your cost floor. Everything else is on top.
Origin charges
Everything that happens before the container goes on the vessel: trucking to port, terminal handling (THC), documentation fees, customs export clearance, container loading, VGM weighing. These vary by origin country and port.
Destination charges
Everything after the vessel arrives: terminal handling (DTHC), customs import clearance, delivery trucking, chassis fees, pier pass (US West Coast), clean truck fees. These vary wildly by port — US ports are the most expensive.
Surcharges
Carrier-imposed surcharges that change quarterly or seasonally: BAF (bunker), CAF (currency), PSS (peak season), EBS (emergency bunker), low-sulphur surcharge, Panama/Suez canal surcharge. These are pass-through costs — don't absorb them.
Documentation fees
Your fee for preparing the Bill of Lading, handling document processing, AMS/ACI filing, ISF filing. This is pure margin — your labor cost is fixed regardless of cargo value. Most forwarders charge $50–150 per B/L.
Your markup / profit
The spread between what you pay the carrier and what you charge the client. Applied as a percentage on ocean freight, flat fee on services, or blended into an all-in rate. This is your business — protect it.
All-In vs. Itemized Pricing
Two ways to present the same quote. Each has advantages — and each can lose you business if used in the wrong situation.
| Factor | All-In Rate | Itemized Rate |
|---|---|---|
| Format | Single price covers everything port-to-port or door-to-door | Every charge listed separately with individual line items |
| Client sees your margin? | No — your markup is hidden in the total | Partially — experienced clients can estimate your markup |
| Easy to compare? | Yes — client compares one number across forwarders | Hard — different forwarders itemize differently |
| Transparency | Low — client doesn't know what they're paying for | High — client sees exactly where money goes |
| Best for | Small shippers, first-time importers, simple moves | Experienced shippers, large accounts, RFQ responses |
| Risk to you | High — if costs increase, your margin shrinks | Low — you can adjust individual components |
| Speed to quote | Fast — one number, done | Slower — need to calculate each component |
| Client preference | SMB clients prefer simplicity | Enterprise clients demand breakdown |
Markup Strategies That Actually Work
There's no single 'correct' markup. The right strategy depends on your client, trade lane, and competitive position.
Percentage markup on ocean freight
Add 15–25% on top of your carrier rate. Simple, scales with cargo volume, and automatically adjusts when rates change. Best for: new forwarders building a book of business.
Flat fee per container
Add a fixed amount ($150–400) per container regardless of the ocean rate. Your margin stays constant whether rates are high or low. Best for: contract clients with stable volume.
Blended all-in rate
Calculate your total cost, add your target margin, and present one number. Client can't see where your markup lives. Best for: SMB clients who just want a simple answer.
Cost-plus with service fees
Pass ocean freight at cost (or near-cost), then charge premium fees for documentation, coordination, customs, and value-added services. Best for: large accounts who benchmark ocean rates.
Tiered pricing by volume
Offer better rates as the client's volume increases: 1–5 containers/month at Rate A, 6–15 at Rate B, 15+ at Rate C. Incentivizes loyalty and grows your volume with the carrier. Best for: growing accounts.
Lane-specific pricing
Price aggressively on trade lanes where you have the best carrier rates, and at higher margins on lanes where you add the most value (complex destinations, special cargo). Best for: established forwarders with carrier leverage.
How to Build a Quote in 6 Steps
This is the process experienced forwarders follow for every single quote. Skip a step and you'll either lose money or lose the client.
Get complete cargo details
Before you quote anything: commodity, weight, dimensions, number of packages, FCL or LCL, hazardous or not, temperature-controlled or not, origin address, destination address, Incoterms. Incomplete details = inaccurate quote = unhappy client.
Check your carrier rates
Look up your contracted rates for the specific trade lane. Check spot rates if you don't have a contract. Compare across 2–3 carriers for the best combination of rate, transit time, and reliability. Factor in any surcharges that will apply.
Calculate all origin charges
Get trucking costs from your origin agent, terminal handling charges, export customs clearance, documentation fees, VGM weighing, container loading if applicable. Don't estimate — get actual quotes from your agents.
Calculate all destination charges
Get delivery trucking costs, DTHC, import customs clearance, chassis fees, any port-specific charges (pier pass, clean truck fee, congestion surcharge). Destination charges are where most quoting errors happen.
Add your markup and review
Apply your markup strategy. Sanity-check the total against market rates — if you're 30% above market, find out why. If you're below your cost floor, something is wrong. Review every line item before sending.
Present the quote professionally
Use a clean, branded quote template. Include validity period (7–14 days for spot, 30 days for contract), payment terms, transit time, free time included, and any exclusions. Respond within 24 hours — speed wins business.
8 Quoting Mistakes That Cost You Money or Clients
Every forwarder has made at least three of these. The best ones only made them once.
Forgetting surcharges in your quote
You quoted the base ocean rate and forgot BAF, PSS, and low-sulphur surcharge. Those add $300–600 per container. Now you either absorb the loss or go back to the client with a higher number — neither is good.
Quoting without checking destination charges
You estimated US destination charges at $500. The actual charges are $1,200 including chassis, pier pass, and congestion surcharge. You eat the $700 difference or damage the relationship by revising the quote.
Taking too long to respond
The client sent a quote request on Monday. You responded on Thursday. They booked with a competitor on Tuesday. 60% of lost quotes are about speed, not price. Set up templates and rate databases so you can quote within hours.
No validity period on the quote
You sent a quote without an expiry date. The client comes back 6 weeks later to book — but carrier rates increased 40% due to peak season. You either honor the old rate at a loss or decline and lose trust.
Quoting all-in to an experienced shipper
Large shippers want itemized quotes so they can benchmark each component. Giving them an all-in number looks like you're hiding something. Match your quote format to your audience — all-in for SMBs, itemized for enterprises.
Not quoting transit time alongside price
You quoted the cheapest ocean rate — but it has 45-day transit with two transshipments. The client wanted 25-day direct service. Always present price AND transit time together. The cheapest rate isn't always the best value.
Absorbing rate increases silently
Carrier rates went up but you kept quoting the old price to avoid an awkward conversation. After 3 months, your margin is gone. Communicate rate changes proactively — clients respect transparency more than fake stability.
Not including free time in the quote
Your quote says '$2,500 door-to-door' but doesn't mention free time. The client assumes unlimited free time. They take 12 days to return the container and get hit with $800 in detention. Now they blame you.