By Vincent Wen.    Photo：Mark Stebnicki

Due to various unforeseen events in shipping and ports, additional expenses or costs may arise for shipping companies when transporting goods. In order to compensate for these additional costs, in addition to basic freight charges, shipping companies may also impose surcharges. There are various
types of surcharges, and they are not fixed costs but fluctuate depending on different circumstances. Additionally, shipping companies may introduce new charges or apply them only on specific routes based on special situations. Below, we will introduce common sea freight surcharges on routes to the
United States:

1. General Rate Increase (GRI): This surcharge is often heard in the news and is commonly used on routes to the Americas. When costs related to factors such as ports and vessels increase, shipping companies raise GRI to offset the losses. Generally, GRI is already included in the quoted freight,
and any increase in freight reflects the occurrence of GRI increases.

2. Peak Season Surcharge (PSS): Typically imposed during busy cargo shipping seasons, shipping companies may charge PSS. The shipping peak season usually occurs from April to November.

3. Freight All Kinds Rates (FAK): This surcharge is applied when international oil prices rise, leading to increased operational costs for shipping companies.

4. Terminal Handling Charge (THC): Used for handling container loading and unloading costs at ports, as well as the use of port facilities and equipment. The collection of THC fees varies depending on the country and shipping company.

5. Port Congestion Surcharge (PCS): When ports are congested or exceptionally busy, resulting in longer waiting times for vessels and extended berthing periods, transportation costs can significantly increase. To compensate for these costs, shipping companies may charge a port congestion surcharge, especially during peak periods like the past two years during the pandemic.

6. Panama Canal Transit Fee (PTF): Shipping from the West Coast to the East Coast often involves transiting the Panama Canal. When vessels pass through the Panama Canal, shipping companies need to pay a certain navigation fee to the Panama Canal Authority (PCA). This cost is passed on to customers through the form of a Panama Canal fee. This fee has increased due to the dry spell at the Panama Canal this year.

7. Automated Manifest System (AMS) - U.S.: A unique fee in the United States, implemented post-9/11 attacks, involving various inspection regulations and checkpoints for incoming foreigners and goods. Transmitting company information and cargo details to U.S. Customs for entry permits incurs this transmission procedure. Conversely, imports require filing an Importer Security Filing (ISF), and failing to file within the specified time may result in substantial fines of around $5000 USD.

8. Cleaning Charge (CC): This fee is more common in the transportation of bulk cargo.

9. Heavy-Lift Additional (HLA): Applied when the weight of a single item exceeds a certain standard (standards may vary among different freight forwarders or shipowners). This fee compensates for additional operating costs due to the difficulty of handling, requiring special equipment or operations.

10. Long Length Additional (LLA): Applied when the length of a single item exceeds a certain standard (standards may vary). This fee compensates for additional operating costs due to the difficulty of handling, requiring special equipment or operations. For containerized cargo, a length exceeding
6 meters is generally considered overlength, and the rate increases with the length.

The above list includes common surcharges, but there are many others. We recommend consulting with your freight forwarder before shipping to avoid post-shipment pricing concerns.

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