10 Lesser-Known Shipping Charges Every Shipper Should Be Aware Of

Introduction

In the world of ocean freight, acronyms and abbreviations abound. While most shippers are familiar with common charges like GRI (General Rate Increase) and BAF (Bunker Adjustment Factor), there are several lesser-known fees that can catch even experienced shippers off guard. At FreightAmigo, we believe in empowering our clients with knowledge to navigate the complex world of shipping. That's why we've compiled a list of 10 lesser-known shipping charges that every shipper should be aware of.

Understanding these charges is crucial for several reasons:

• It helps you budget more accurately for your shipments
• It allows you to negotiate more effectively with carriers
• It prevents unexpected costs from eating into your profit margins
• It enables you to make more informed decisions about your shipping strategies

Let's dive into these charges and explore how our Digital Logistics Platform can help you manage them more effectively.

1. Wharfage Fee

The wharfage fee is a charge levied by carriers for the use of their space and facilities. This fee compensates the carrier for handling your cargo at their terminal.

What you need to know:

• It's often included in the base freight rate or terminal handling charge
• The fee can vary depending on the port and the type of cargo
• Some ports may charge this fee separately from the carrier's charges

As part of our comprehensive Digital Logistics Solution, FreightAmigo provides transparent pricing that clearly outlines all charges, including wharfage fees. This ensures you're never caught off guard by hidden costs.

2. Release Fee

Also known as the cargo handover fee, delivery order fee, or destination document fee, this charge covers local costs at the destination for processing the release of imported cargo to the consignee.

Key points:

• The fee varies by carrier and destination
• It's typically charged per Bill of Lading
• Some carriers may include this in their overall destination charges

Our Digital Platform allows you to compare quotes from multiple carriers, helping you identify the most cost-effective options, including those with lower release fees.

3. Equipment Imbalance Surcharge (EIS)

The EIS is applied to outgoing cargo on routes with a trade imbalance, typically destinations with low export volumes. This charge helps carriers cover the cost of repositioning empty containers to ports where they're needed.

Important considerations:

• The surcharge can significantly impact shipping costs on certain routes
• It's more common on routes to inland or less-developed areas
• The charge can fluctuate based on market conditions

FreightAmigo's advanced analytics can help you identify routes with lower EIS charges, potentially saving you money on your shipments.

4. Verified Gross Mass (VGM) Fees

Introduced in 2016, VGM fees relate to the requirement that all containers must be weighed and their verified gross mass declared before loading onto a vessel.

What shippers should know:

• Fees may be charged for administrative processes related to VGM
• Some carriers charge for manual submissions or late submissions of VGM information
• Additional weighing costs may apply if you can't provide accurate weight information

Our Digital Logistics Platform streamlines the VGM submission process, helping you avoid late fees and ensuring compliance with regulations.

5. Manifest Correction Fee

This fee is charged when changes need to be made to shipping documents after they've been processed, necessitating updates to the manifest.

Key points to remember:

• Some carriers allow one free correction or unlimited changes up to the sail date
• Others charge for any changes after the first set of documents is processed
• Fees may apply for each subsequent correction

FreightAmigo's automated document management system helps reduce errors and the need for corrections, potentially saving you from these fees.

6. Security Fee (SEC)

Also known as the ISPS (International Ship and Port Facility Security) fee, this charge is levied by ports to cover the costs of maintaining vessel security in compliance with international standards.

Important details:

• Applied per container
• Rates can vary by port and region
• Some carriers include this in their overall security surcharges

Our Digital Logistics Solution provides comprehensive cost breakdowns, ensuring you're aware of all security-related charges for your shipments.

7. Heavy Lift (HEA) Charge

This surcharge applies to cargo weighing more than a standard shipment, requiring special handling equipment.

What you need to know:

• Charged per container
• Applies when heavy cranes are needed instead of regular stacking equipment
• The weight threshold for HEA can vary by carrier and port

FreightAmigo's platform allows you to easily compare HEA charges across different carriers, helping you find the most cost-effective option for your heavy shipments.

8. Overweight Surcharge (OWS)

Similar to HEA, the OWS is charged by carriers for handling heavy containers, but with a focus on the vessel's weight capacity.

Key considerations:

• Compensates carriers for potential loss of cargo slots due to weight limitations
• Rates can vary significantly between carriers
• May be applied in addition to HEA charges

Our Digital Platform provides detailed weight-based pricing information, helping you understand and plan for potential OWS charges.

9. Out of Gauge (OOG) Charge

This charge applies to cargo that doesn't fit standard containers and requires special handling or equipment.

Important points:

• Prices vary based on the number of slots the OOG container occupies
• Handling complexity and route-specific rates also affect the charge
• Often applies to cargo shipped in open-top containers or flat racks

FreightAmigo's expertise in specialized cargo shipping can help you navigate OOG charges and find the most cost-effective solutions for non-standard shipments.

10. War Risk (WAR) Surcharge

This charge is applied to cargo on vessels transiting through high-risk areas, covering increased security premiums and potential rerouting costs.

What shippers should know:

• Applies to areas with ongoing conflicts or high piracy risks
• Can change rapidly based on geopolitical situations
• May be applied to broader regions beyond specific conflict zones

Our Digital Logistics Platform provides real-time updates on geopolitical risks and associated charges, helping you plan your shipments more effectively.

Area-Specific Surcharges

In addition to the charges mentioned above, there are several area-specific surcharges that shippers should be aware of:

• Panama Canal Charge (PCC): Applied to cargo transiting through the Panama Canal
• Suez Canal Surcharge (SUE): For cargo passing through the Suez Canal
• Low Sulfur Charge (LSC): Applied to vessels operating in the EU area due to environmental regulations
• Aden Gulf Surcharge (ADE): For cargo transiting through the Gulf of Aden, due to piracy risks
• Low Water Surcharge (LWS): Applied by some ports (e.g., Montreal) due to low water levels in connecting waterways
• Security Manifest Documentation Fee (SMD): For submitting advance manifest declarations to US, Canadian, and Mexican customs

These charges can significantly impact your shipping costs depending on your routes and destinations. FreightAmigo's comprehensive route planning tools can help you identify and plan for these area-specific charges, optimizing your shipping strategy.

How FreightAmigo Can Help

Navigating the complex world of shipping charges can be challenging, but FreightAmigo is here to help. Our Digital Logistics Platform offers several advantages:

• Transparent Pricing: We provide clear, comprehensive breakdowns of all charges associated with your shipments.
• Comparative Analysis: Our platform allows you to compare quotes from multiple carriers, helping you identify the most cost-effective options.
• Real-time Updates: Stay informed about changing surcharges and geopolitical risks that may affect your shipping costs.
• Automated Documentation: Reduce the risk of errors and associated correction fees with our automated document management system.
• Expert Support: Our team of logistics experts is available 24/7 to help you understand and navigate complex shipping charges.
• Route Optimization: Our advanced analytics can help you identify routes with lower surcharges, potentially saving you money on your shipments.

By leveraging FreightAmigo's Digital Logistics Solution, you can stay ahead of these lesser-known charges, optimize your shipping strategies, and ultimately improve your bottom line.

Conclusion

Understanding the various charges in ocean freight shipping is crucial for effective cost management and planning. While some of these lesser-known charges may seem minor individually, they can add up to significant costs over time. By staying informed and leveraging digital solutions like FreightAmigo, shippers can better navigate these complexities, avoid surprises, and make more informed decisions.

At FreightAmigo, we're committed to providing you with the tools and knowledge you need to succeed in the ever-evolving world of global logistics. Our Digital Logistics Platform is designed to simplify your shipping processes, provide transparency in pricing, and help you optimize your supply chain operations.

Don't let unexpected charges derail your shipping budget. Partner with FreightAmigo and gain the insights and support you need to master the intricacies of ocean freight shipping. Together, we can navigate these challenges and drive your business forward in the global marketplace.