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Extrans Global - What is Ocean Freight #2 Additional Charges
3) Additional Charge (O/F)
An additional Charge is an amount included in the export price. It is crucial to check all the details and costs carefully.
① THC (Terminal Handling Charge)
This is the cost of moving cargo from the moment it is received at the container terminal to the side of the main ship, and vice versa, from the side of the main ship until it passes through the CY gate.
② CFS Charge (Container Freight Station Charge)
When a shipping company transports LCL cargo that is less than the size of one container, the cargo is loaded or sorted at the CFS at the loading and ending points. The cost incurred at this time is called a CFS charge. Therefore, FCL cargo does not incur CFS charge.
③ Seal Charge
If proceeding with FCL, this is the cost of the locking device that closes the container after loading the goods at the end. There is a series of numbers on each seal (seal, seal lock), and once opened, it cannot be closed again with that seal and a new seal must be used.
④ Telex Release Charge
This is the case when ‘SURRENDER’ is stamped on the B/L (Bill of Lading). Allows you to find cargo with a copy of the B/L without the original.
⑤ Document fee
This is the cost for the shipping company or forwarder to issue B/L-related documents and handle the documents. This costs per B/L. It occurs for both LCL and FCL, and occurs regardless of cargo size.
⑥ W/F (Wharfage Charge)
This is a fee collected from users who use port facilities such as docks, yards, and passenger terminals. This is the wharf cost at the loading port and destination port.
⑦ CCAM (China Customs Advanced Manifest)
This cost is only incurred when exporting to China. Pre-report details must be entered on the shipping company's website or system, and the report must be completed at least 24 hours in advance.
⑧ VGM Charge (Verified Gross Mass Charge)
This is the measurement cost for the ‘Container Cargo Gross Weight Verification System’ that came into effect at IMO as of July 1, 2016.
This requires the total weight of the cargo loaded in the container to be certified, and the total weight of the cargo, including the weight of the container, to be reported to the shipping company.
⑨ Drayage Charge
This refers to the transportation cost for the bonded transportation section from the dock or CY to the assigned CFS or bonded warehouse to classify and store LCL cargo.
In FCL, you can check the Container Drayage Charge details.
⑩ Loading/Unloading Charge
This is the cost of loading and unloading cargo into a container.
⑪ H/C (Handling fee)
A fee charged by the forwarder for transportation services. This can occur for both import and export.
⑫ Demurrage Charge
If unloading is carried out beyond the permitted berthing period, the shipper pays demurrage fees to the shipowner for the excess time. If the number of days of loading or unloading exceeds the agreed laydays, the charterer pays the shipowner for the excess days. This is the amount paid per day (1 day) or per ton of weight. Additionally, this is the amount paid when the container is not taken out of the CY (Container Yard) within the allowed time (Free Time).
✔ Despatch money: Contrary to demurrage, it is an incentive paid by the shipowner to the shipper for the shortened period when unloading is completed sooner than the designated berthing period. This is because the ship owner benefits from cost savings, and the demurrage fee is usually 1/2 of the demurrage fee.
⑬ Detention Charge
This is a cost paid if the shipper does not return the container taken out to the designated shipping company's CY within the allowed time (free time). Free Time varies depending on the alliance or shipping company.
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