What is a carrier rate sheet?

A carrier rate sheet (also called a tariff or rate card) is a document from a shipping line listing their ocean freight rates and surcharges for specific trade lanes, equipment types, and time periods. It's the starting point for calculating your buy cost per container.

How often do carrier rates change?

Rate sheets typically have a 30–90 day validity period. However, surcharges (especially BAF and PSS) can change monthly. General Rate Increases (GRI) are announced 15–30 days in advance and can take effect on the 1st or 15th of any month.

What is the difference between FAK and commodity rates?

FAK (Freight All Kinds) is a single rate for all cargo types — no commodity classification needed. Commodity rates are tied to specific HS codes or cargo categories and are usually lower than FAK rates. The tradeoff: FAK is simpler, commodity rates are cheaper but require accurate classification.

Do I negotiate the base rate or the surcharges?

Primarily the base rate. Most surcharges (BAF, THC, PSS) are set by the carrier and applied uniformly — there's limited room to negotiate them. Your leverage is on the base ocean freight rate and potentially on free time allowances and equipment types.

What does 'per TEU' vs 'per FEU' mean?

TEU = Twenty-foot Equivalent Unit (one 20ft container). FEU = Forty-foot Equivalent Unit (one 40ft container). A rate 'per TEU' applies to 20ft boxes. A 40ft container rate is typically 1.5–1.8× the 20ft rate, not double. Always verify which unit the rate sheet uses.

How do I calculate my total buy cost from the rate sheet?

Add the base ocean freight rate + all applicable surcharges (BAF, THC, PSS, LSS, ISPS, EBS, etc.) for your specific route and equipment type. Then add origin terminal charges and destination terminal charges. The sum is your total carrier cost per container.

GRI stands for General Rate Increase. It's a blanket increase to base ocean freight rates announced by the carrier 15–30 days before the effective date. GRIs typically range from $100–$500 per container and can happen multiple times per year, especially during peak season.

Should I request rate sheets from multiple carriers?

Absolutely. Always get rate sheets from at least 2–3 carriers per trade lane. Rates vary significantly between carriers on the same route. Having multiple options gives you negotiating leverage and backup if one carrier's space is full.

Rates & Pricing

How to Read a Carrier Rate Sheet

That PDF from the carrier has 30 line items, a dozen surcharge codes, and fine print that can cost you thousands. Here's how to decode every single one.

15–25

typical line items on a rate sheet

30–90 days

standard rate validity period

40–60%

of total cost can be surcharges

Anatomy of a Rate Sheet

Every carrier rate sheet follows the same basic structure, regardless of the shipping line.

Header & Validity

The top of the rate sheet shows the carrier name, effective date, expiry date, and the trade lane or service loop covered. Always check validity first — an expired rate sheet is worthless. Most rates are valid for 30–90 days.

Origin & Destination Pairs

Rates are listed by port pairs (e.g., Shanghai → Rotterdam) or by range (e.g., China Main Ports → North Europe). 'Range' rates apply to multiple ports in a region, while port-specific rates override ranges.

Equipment Types

Rates are broken out by container type: 20'DC (standard), 40'DC (standard), 40'HC (high cube), 20'RF (reefer), 40'RF (reefer), 20'OT (open top), 40'FR (flat rack). Each has a different base rate.

Base Ocean Freight

The core rate per container — this is your starting point. Quoted per TEU (20ft) or per FEU (40ft). The 40'HC rate is typically the same as 40'DC or slightly higher. This is the number you negotiate hardest on.

Surcharges

The longest section. Every additional fee the carrier applies on top of the base rate. These can add 40–60% to the base freight. Some are fixed, some fluctuate monthly.

Terms & Conditions

The fine print at the bottom: free time allowances, demurrage/detention rates, payment terms, GRI notice periods, amendment policies, and cancellation fees.

Rate Types You'll See

Not all rates on the sheet are the same — know what type you're looking at.

FAK (Freight All Kinds)

Most common

A single rate that applies to all commodity types. No commodity classification needed. Simple to quote but usually higher than commodity-specific rates. Best for general cargo and when you don't want to deal with commodity codes.

Commodity Rate

Lower rates

Rates tied to specific commodity codes (HS codes or carrier commodity groups). Lower than FAK for many goods, but you must declare the correct commodity. Misclassification can trigger rate adjustments or penalties.

NAC (Named Account Contract)

Best rates

Contracted rates for specific shipper accounts with guaranteed volume commitments. The lowest rates available, but require minimum quantity commitments (MQC). Penalties apply if you don't ship the committed volume.

Spot Rate

Most flexible

One-time rates for individual shipments with no volume commitment. Higher than contract rates but fully flexible. Valid for a single booking only. Useful for irregular shipments or when testing a new trade lane.

GRI Rate

Rate adjustment

Not a separate rate type, but a General Rate Increase applied to existing rates on a specific date. Carriers announce GRIs 15–30 days in advance. Your rate sheet's base rate will increase by the GRI amount on the effective date.

Surcharge Codes Decoded

Every three-letter code on the rate sheet translated into plain language.

Code	Full Name	What It Is	Typical Range
BAF	Bunker Adjustment Factor	Fuel cost surcharge. Fluctuates with oil prices. Updated monthly or quarterly by most carriers.	$100–$600/ctr
THC	Terminal Handling Charge	Cost of loading/unloading containers at the terminal. Charged at both origin and destination.	$100–$350/ctr
PSS	Peak Season Surcharge	Applied during high-demand periods (typically July–October for Asia–Europe/US). Temporary but can be significant.	$200–$1,000/ctr
CAF	Currency Adjustment Factor	Compensates for exchange rate fluctuations between the billing currency and the carrier's operating currency.	2–5% of freight
EBS	Emergency Bunker Surcharge	Additional fuel surcharge on top of BAF during oil price spikes. Usually temporary.	$50–$300/ctr
LSS	Low Sulphur Surcharge	Covers the cost of IMO 2020 compliant low-sulphur fuel. Permanent since 2020.	$30–$150/ctr
ISPS	ISPS Security Surcharge	International Ship and Port Facility Security code compliance surcharge.	$5–$15/ctr
EIS	Equipment Imbalance Surcharge	Covers the cost of repositioning empty containers from surplus to deficit areas.	$50–$400/ctr
WRS	War Risk Surcharge	Applied for transits through high-risk areas (e.g., Gulf of Aden, Red Sea). Variable based on geopolitical conditions.	$25–$200/ctr
DOC	Documentation Fee	Carrier's charge for Bill of Lading preparation and manifest filing.	$25–$75/B/L

How to Read the Numbers

Step-by-step process for extracting the information you need from any rate sheet.

Check validity dates first

Before you read a single number, confirm the rate sheet is still valid. If it expired last week, everything in it is useless. Note the expiry date and set a reminder to request updated rates before it lapses.

Find your port pair

Locate the specific origin-destination combination. If your exact ports aren't listed, look for range rates. 'China Main Ports' typically includes Shanghai, Ningbo, Qingdao, Shenzhen, and Xiamen.

Identify the equipment type

Match the container type your customer needs. Most shipments use 40'HC. Don't confuse 20'DC and 40'DC rates — the 40ft is not simply double the 20ft rate (it's usually 1.5–1.8×).

Note the base rate

This is your starting number. Check if it's per TEU or per FEU. Some carriers quote both, some only quote 40ft and give a ratio for 20ft (e.g., '20ft = 60% of 40ft rate').

Add up all applicable surcharges

Go through every surcharge line and add the ones that apply to your route. Don't skip any — they're all mandatory. Sum them to get the total carrier cost per container.

Calculate total carrier cost

Base rate + all surcharges = your buy price from the carrier. This is the floor below which you lose money. Add your markup on top of this number, never on top of the base rate alone.

Hidden Costs to Watch For

These charges aren't always on the rate sheet but will show up on the invoice.

Demurrage & Detention rates

The rate sheet may show free time (e.g., '7 days free at destination') but not the per-day charges after free time expires. Always request the D&D tariff separately. These can be $100–$300 per day per container.

Amendment and cancellation fees

Changing a booking after confirmation or cancelling a booking incurs fees — typically $50–$200 per amendment. These are rarely on the rate sheet but appear in the terms and conditions.

Overweight surcharges

Loading a container beyond the carrier's weight limit (usually 28–30 tons gross) triggers an overweight surcharge or booking rejection. The limit varies by vessel and route.

Port congestion surcharges

Temporary surcharges applied when ports are congested. These appear with little notice and can add $100–$500 per container. Not on the standard rate sheet — announced via carrier advisories.

VGM filing fee

Some carriers charge for SOLAS VGM (Verified Gross Mass) submission — $15–$35 per container. Others include it in THC. Check whether it's separate.

Rate Sheet Reading Mistakes

These errors lead to underquoting, margin loss, and customer disputes.

Using an expired rate sheet

Quoting based on a rate sheet that expired last month. Carriers routinely increase rates by $100–$500 per container between validity periods. Always confirm current rates.

Quoting $100–$500 below actual cost

Forgetting to add all surcharges

Quoting only the base rate and forgetting BAF, THC, or PSS. Surcharges can be 40–60% of the base rate. A $1,500 base rate can become $2,500 all-in with surcharges.

Underquoting by 40–60%

Confusing TEU and FEU pricing

The rate sheet shows $1,200 per TEU but you quote it as per FEU. Your actual cost for a 40ft container is $1,800–$2,000, not $1,200. Always verify the unit.

Quoting at 50–60% of actual cost

Ignoring GRI effective dates

Quoting today based on current rates, but the shipment sails after a GRI takes effect. If a $200 GRI hits on the 15th and your cargo sails on the 20th, you eat the increase.

Absorbing $200–$500 per container GRI

Not checking free time terms

Assuming standard free time without checking the rate sheet's terms. Some carriers offer only 3 days free at destination on certain routes. Short free time leads to demurrage charges your customer wasn't expecting.

Unexpected D&D: $100–$300/day

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