What is included in ocean freight charges?


The global economy depends on freight companies and their services. The transportation system worldwide is at the core of most businesses because they need supplies. Whether it is international or national transport, businesses need freight companies.

One of the most popular forms of transport is ocean freight, which is perfect for transporting certain materials that can’t be transported with an airplane. For example, methane gas can be transported only via ships. This substance is so volatile that an airplane could never transport it, and on land, it is not recommended due to the cost. Usually, methane is transported from one continent to another, so there are no roads to use. Thus ocean freight is the only viable solution. Other materials are in the same situation, and ocean freight provides the best solution.

Sometimes the fees paid for ocean freight are not adequately explained, and it may make clients uncomfortable not knowing what they pay for. To make things clearer, below is a list of services included in ocean freight charges. Before jumping to the list, knowing that every freight moving company has its services and prices is crucial. In the contract, customers can find more details about the charges. In the list below you will find some of the more common types of charges, but they may not apply to every company.

Fuel Costs

As fuel is necessary for the ship’s movement, this will be included in the charges. Additional fees regarding fuel might be added. This is referred to as BAF or bunker adjustment factor, and it means that in some situations, the ship will consume more fuel than predicted. Thus additional fees are required.

Bill of Lading Fee

The company applies the bill of lading on behalf of the client. It is a receipt with all the information about the transport, the goods, and all parties involved. This document can cost $20 or more to process.

Export Services and Port Taxes

Ocean freight transport passes through many countries, and each country has different rules. Usually, ports require fees to allow ships to dock for certain periods of time. Sometimes it is necessary for the ship to make stops in different ports, and from there, new fees will appear.

There are also export taxes from the country of provenance to other countries. Any goods that will be sold are taxable.

Prices Based on Containers

Regarding the containers on the ship, there can be different prices because customers can opt to use a full container load or less. The full container load will be more expensive, but this will allow the buyer to use the entire space. With LCL (Less than container load), the charges for the transport will decrease, but the goods will share the same place with someone else’s goods.

Delivery Fees

In the freight transport industry, it is called drayage. This means transporting any goods required to get to the ship and from the ship to the buyer. This will add an additional fee, but it is suggested to opt for it because most companies provide discounts if you let them handle the drayage. As a 2-in-1 offer, they will offer ocean freight transport and continue on land.

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