What is included in the price for sea freight
Price for maritime transport depends on the place of risk transfer and container transport conditions. The following are the key terms for the transport conditions:
- LILO (Liner in/out) : Loading/discharging is at liner cost;
- FIOS (Free in/out) : Loading/discharging is at consigner's cost
- FILO (Free in / Liner out) : Loading is at consigner's cost, discharging is at liner cost;
- LIFO (Liner in/ Free out) : Loading is at liner cost, discharging is at consigner's cost;
- LI-Door (Liner in/ Door) : Loading is at liner cost, delivering is provided to client's door (this price does not include unstuffing the container at the consignee’s warehouse);
Depending on the shipping line or a particular port practice the following surcharges may be added to the basic rate (Basic Sea Freight):
- ALL IN (All Inclusive) : Cost of transportation includes all possible extra fees and surcharges;
- CAF (Currency Adjustment Factor) : Compensation for exchange rate fluctuations;
- BAF (Bunker Adjustment Factor) : Compensation for oil price changes;
- ERS (Emergency Risk Surcharge) : Emergency expenses on penalties;
- DTHC (Destination Terminal Handling Charge) : Discharging costs at the port of destination;
- DDF (Destination Documentation Fee) : Document execution fee and other fees at the port of destination;
- ISPS(International Security Port Surcharge) : Security surcharge at the port;
- HLC (Heavy Lift Charge) : Surcharge for exceeding a certain cargo weight;
- SER (Carrier Security Charge) : Charge for cargo security during transportation;
- TSUR (Transshipment Surcharge) : Surcharge for transshipment from one vessel to another;
- WRS (War Risk Surcharge) : Плата за риск по перевозке в регионах, где возможны военные действия;
- WNS (Winter Surcharge) : Winter and ice surcharge. Used in ports with a risk of the water zone icing to compensate for the costs of deicing activities and work of icebreakers;
- PSS (Peak Season Surcharge) : Surcharge associated with the seasonal increase in traffic at certain times of the year;
Penalties
- Demurrage is a penalty charge for utilizing a container beyond the time specified by a shipping line. It is calculated from the moment of unloading the container at the terminal and to its removal from the terminal;
- Detention is a penalty charge for utilizing a container beyond the time specified by a shipping line. It is calculated from the moment of removing the container from the terminal and to return of the empty container back to the port;
Additional port charges
Additional charges are paid at the port upon the provision of specific services:
- Storage is a charge for exceeded storage of cargo at the port. It is calculated from the moment of unloading the container at the terminal and to its removal from the terminal;
- Arrangement for examination is a charge for the service of arranging a container for customs or sanitary examination;
- Other services : weighing, repacking, labeling, sealing, etc. Everything that is not prescribed by the usual procedure of processing a container at the terminal;