Settlement of costs related to sea freight

 

 

In addition to the pure freight cost, there are various miscellaneous charges, some of which are charged by the shipowner, some are charged by the port of shipment or destination terminal, and some are charged by the freight forwarder under his own name. Moreover, many of these charges do not have a clear standard and are very flexible. In addition to charging the shipper, some charges will be charged to the consignee. This is very easy to produce two traps: one is that some of the freight forwarders charge more under different names, and the second is that the freight forwarders require the consignee and the consignor to regulate the transfer of part of the cost.

Generally, the consignor will find the freight forwarder; the consignor is the patron; the freight forwarder will try to lower the cost to please the consignor, so less charges; and to the port of destination to collect more money from the customer (the consignee); demolition of the east wall to make up for the west wall; and vice versa. This is why for the same batch of goods, if we do CIF, we will find their own freight forwarding; the cost is relatively low; and if we do FOB by the customer-designated freight forwarding, then the miscellaneous fees in human currency are much higher.

 

Knowing these facts, we also understand the price a little bit beforehand to determine the composition of the first, to avoid some bad freight forwarder shipping charges or transfers to customers, affecting their feelings and cooperation with customers.

 

Common miscellaneous costs include:

ORC: OriginReceivingCharge

DDC：DestinationDeliveryCharge

THC：TerminalHandlingCharge

BAF：BunkerAdjustedFactor

CAF：CurrencyAdjustmentFactor

DOC：Document

PSS：PeakSeasonSurcharge

AMS：AmericaManifestSystem

 

 

Container Inbalance Charge,some people translate it as "equipment management fee," and there are several reasons for the formation of this CIC fee:

 

1. Seasonal changes in the world's liner routes for cargo transportation lead to an imbalance in the flow of goods. Western countries are usually at the beginning of the year, which is the off-season for cargo transportation. April and May box volume gradually rose, the number of trade volumes began to increase, and this will lead to an increase in the amount of trade in a small climax.

 

2. The trade volume imbalance between countries or regions at both ends of the route: the goods exported from China and other East Asian countries to Europe are far more than the goods imported from Europe to China and other East Asian regions, and there is a similar significant problem in the Far East North America route.

 

3. Differences in the types and nature of imported and exported goods, as well as differences in the standards of freight and handling charges, also contribute to the imbalance of imported and exported containers.

 

In fact, the CIC fee is following the EBS fee, another overbearing cost, but at present, China's exports of liner are in the hands of the alliance of shipping companies. In order to earn greater profits, these shipping companies continue to attach harsh miscellaneous fees, and China's exporters are in a disadvantaged position, in this case, are forced to accept the shipping company's unreasonable price adjustments.

 

 

CONTAINER FREIGHT STATION is the place for handling LCL cargo. It handles the handover of LCL cargo after load allocation and accumulation, sends the boxes to CY (Container Yard), accepts imported containers handed over by CY for unpacking, cargo handling, and storage, and finally allocates them to each consignee. At the same time, it can also be commissioned by the carrier to seal and issue terminal receipts and other business.

 

The cost of CFS is usually calculated by how much a party pays. Because CFS is the cost generated by the consolidation, changes in the port of shipment and the port of destination have occurred. In FOB conditions, CFS lists this cost separately for the exporter or factory to collect. (Because FOB is the freight to pay, so the cost of the port of shipment is not calculated in the freight); and in the CIF conditions, the port of shipment of CFS costs have been included in the freight forwarder quoted to you within the shipping price, so no longer in the port of shipment of CFS alone, but the importer in the port of destination side or to pay their side of the CFS costs.

 

 

Emerent Bunker Surchanges (EBS) is a temporary surcharge because the price of crude oil is rising and exceeds the capacity of shipowners, so shipowners increase the surcharge in order to reduce the loss of cost when the market is slow and they can't increase the sea transportation fee.

 

How much does EBS charge in general? EBS is only a temporary surcharge, which usually does not last long, and EBS charges differently according to different periods and different regions.

 

Do I need to pay an EBS fee to do FOB? The answer is no; EBS is a surcharge for sea transportation fees and does not belong to FOB local fees, so customers don't need to pay the EBS fee when doing FOB. However, at present, some shipping companies can't receive this fee from customers, so they transfer EBS to FOB customers. If customers meet shipping companies or forwarders requesting to receive an EBS fee, they can try to negotiate with customers and ask them to bear this fee.

 

 

The local charge includes the following points (the specific cost is only for reference and has no practical significance):

 

1. Booking fee: Generally speaking, RMB290/20', RMB420/40' GP/HQ.

2. Customs declaration fee: RMB100-120/copy (if a shipment has N, then the total customs declaration fee is 100N; in addition to more than 5 names, every increase of 5 also needs to add money, so we pay the customs broker RMB30/+5 names).

3.THC: RMB370/20', RMB560/40'GP/40'HQ (paid to the port terminal).

4. Documentation fee: (shipping company charges RMB115/BILL).

5. Operation fee: RMB 150-200

6.AMS: USD25/RMB210 (US/Canada line).

7. towing card fees (depending on where): another few pick-up periods are to speak. Generally, it takes 4 periods to pick up the box, plus RMB100/container, into the 4 period, 5 period dock, plus RMB200/container.

 

Local charge generally refers to, in addition to international air (sea) freight, in the "other country" to generate other costs. These include customs clearance fees, inspection and quarantine fees, documentation fees, security fees, storage fees, warehousing fees, door-to-door pickup (delivery) fees, and other costs. But "the other country's" customs duties are generally not included.

 

In the commonly used FOB and CIF terminology, China's import and export enterprises generally do not produce LOCAL CHARGE, LOCAL CHARGE, LOCAL CHARGE, LOCAL CHARGE, LOCAL CHARGE.

 

Export CIF and local charge are borne by the consignee of the other country.

 

Import FOB and local charges are borne by the consignor of the other country.

 

Only goods involved in door-to-door transportation, such as door-to-door, port-to-door, and door-to-port goods, will produce local charges.

 

For example: import EXW, factory pickup. LOCAL CHARGE from the other country's manufacturers to pick up the goods until the goods shipment in this section are to be borne by our importer.

 

Export DDU, or DDP, fees paid to the designated destination. From the arrival of the goods at the other country's port until the consignee arrives at the designated location of the local charge occurring between the exporter and our country,.

 

 

1,EXW=Ex Works

Place of delivery: a factory or warehouse in the exporting country;
Transportation: buyer's responsibility;
Insurance: buyer's responsibility;
Export formalities: buyer's responsibility;
Import procedures: the buyer is responsible for them.

 

2,FOB=Free on Borad

Place of delivery: port of shipment;
Transportation: buyer's responsibility;
Insurance: buyer's responsibility;
Export formalities: seller's responsibility;
Import procedures: buyer's responsibility.

 

3,CIF=Cost+Insurance+Freight

Place of delivery: port of shipment;
Transportation: seller's responsibility;
Insurance: seller's responsibility;
Export formalities: seller's responsibility;
Import procedures: seller's responsibility.

 

4,CFR=Cost+Freight

Place of delivery: port of shipment;
Transportation: seller's responsibility;
Insurance: buyer's responsibility;
Export formalities: seller's responsibility;
Import formalities: buyer's responsibility.