Ocean freight · Landed cost

Ocean Freight Surcharges: Types, Costs and How to Check Them

Ocean freight surcharges explained for US importers: BAF, PSS, THC and more, what each pays for, and how to read a quote so no fee surprises you.

By ForwarderOneNovember 11, 20267 min read
Quick answer Ocean freight quotes can include fuel, peak-season, terminal and other charges. Ask for an itemized price for your exact route, container and sailing window. Confirm which charges are fixed and which can change after booking.

What an ocean freight surcharge is

Think of an ocean freight price as two layers. The base rate is the carrier’s charge for moving a container from one port to another. Surcharges are everything the carrier adds on top because the base rate alone does not cover a specific cost. Some are recurring (fuel, terminal handling). Others appear only when conditions change (congestion, rerouting, peak demand).

Three terms come up on almost every quote:

  • Base rate: the port-to-port ocean charge, before extras.
  • Surcharges and assessorials: the add-ons that apply to your cargo, lane or timing.
  • All-in rate: a single figure that already includes the surcharges the provider expects to apply.

U.S. rules for qualifying negotiated rate arrangements require a non-vessel-operating common carrier (NVOCC) to state whether the rate is all-in. If it excludes applicable surcharges or accessorial charges, the arrangement must identify them. For a listed pass-through charge without a specified amount, the NVOCC may recover only its actual cost. See 46 CFR 532.5(d).

That is useful in practice. When you read a quote, you are looking for one answer: is this number all-in, or will more charges follow?

The common ocean freight surcharges, and what each pays for

Carriers use different names for similar charges. Use this table to identify the line items and ask how each one is calculated.

Surcharge Full name What it covers When you tend to see it
BAF Bunker adjustment factor Changes in marine fuel prices Most lanes, adjusted periodically
CAF Currency adjustment factor Exchange-rate swings between the carrier’s currencies Lanes where costs are paid in other currencies
PSS Peak season surcharge Tight capacity when demand surges Ahead of holiday retail and Lunar New Year
GRI General rate increase An increase to published base rates on affected lanes Announced by carriers, often at the start of a month or season
THC Terminal handling charge Moving the container through the port terminal Origin and destination ports
Congestion surcharge Port congestion charge Delays and extra vessel waiting time at crowded ports When specific ports back up
War risk / security War risk or emergency surcharge Added insurance or rerouting costs on affected routes When a route becomes riskier or longer
Documentation / AMS Document and filing fees Bills of lading, advance manifest filing and paperwork Most shipments

Fuel and currency: BAF and CAF

BAF exists because fuel is one of a carrier’s biggest and most volatile costs. Rather than reprice the base rate every time oil moves, carriers adjust a separate fuel line. If you are on a fixed contract, ask how often the BAF is updated. If you ship on a spot booking, the BAF is usually already reflected in the figure you are quoted, but you should confirm it.

CAF works the same way for currency. It matters less on many US-bound lanes, but you may still see it on a line-by-line quote.

Peak season and rate increases: PSS and GRI

Carriers may add a peak season surcharge when demand for container space rises. It is often charged per container, with rates that can vary by size, route and equipment. Demand may rise ahead of holiday inventory deadlines or Lunar New Year. Check the carrier’s current notice for your lane and confirm which date controls the charge.

A general rate increase changes the carrier’s published base rate for the affected trade lane or equipment. Ask whether the quoted base rate already reflects the increase and whether a separate PSS applies.

Comparison of PSS and GRI surcharge differences

Port and terminal charges: THC, congestion, documentation

Terminal handling charges pay for moving your container through the port: lifting it off the ship, staging it and loading it onto the next leg. You will usually see one at origin and one at destination. Whether the destination THC is included in your price is one of the most common causes of surprise invoices, so check for it by name.

Port crane lifting a container from a ship

Congestion surcharges are situational. They appear when a port is backed up and vessels or equipment sit waiting. Ask whether the quote includes documentation and advance manifest filing fees.

When a route is disrupted, carriers may add war risk, emergency or rerouting charges. These affect specific lanes at specific times and can show up with short notice. They are a reason to ask for a quote that states how it treats emergency surcharges announced after booking.

What changes which surcharges you pay

A surcharge can vary by trade lane, equipment, effective date and the terms of your quote. Check which booking, cargo receipt or sailing date the carrier uses to determine the applicable charge.

  1. Origin and destination ports. A charge may apply at one port and not another, and some lanes carry route-specific fees.
  2. Container type and size. Most ocean surcharges are per container, and special equipment can add its own fee.
  3. Timing. The date of booking or sailing decides whether PSS, a GRI or an emergency charge is in force.
  4. Whether you ship FCL or LCL. Less-than-container loads typically pay handling and consolidation charges that full containers do not.
  5. Your contract terms. A negotiated arrangement can fix some charges, as the NVOCC rule above describes.

For a deeper look at how these pieces stack up for sellers, see our guide to international freight cost factors and the Amazon seller freight cost breakdown.

A worked example: reading a quote

The table shows how to review a hypothetical quote for a 40-foot container. Ask the provider to fill in the charges and confirm the total before you book.

Line Included in quote? What to ask
Base ocean freight Yes Which ports, which sailing week?
BAF Yes or separate Is it fixed or adjusted at sailing?
PSS Separate Does the date of sailing trigger it?
Origin THC Yes Is it in the quoted total?
Destination THC Often missing Who pays it, and when?
Documentation / AMS Sometimes Any filing fees on top?
Emergency or congestion Not listed What happens if one is announced after booking?

The most useful habit is to turn every “separate” or “not listed” cell into a number or a written answer before you pay. A quote with blanks is not a final quote.

How to check which surcharges apply

You do not have to guess. In the US, carriers and conferences must publish their tariffs in automated systems for public inspection. Those tariffs must show basic ocean freight plus the assessorial charges and surcharges that apply to the shipment details a user enters, and they must be accessible online without time or quantity limits.

In practice, a good routine looks like this:

  1. Write down the shipment parameters: origin port, destination port, container size, cargo type and target sailing date.
  2. Ask your forwarder for a line-by-line quote for exactly those parameters, stating whether it is all-in.
  3. Check named items such as destination THC, documentation, fuel and peak season charges.
  4. Ask how post-booking charges are handled, such as an emergency or congestion fee announced after you book.
  5. Compare total landed cost, not base rates, including duties and delivery to the warehouse.

Our article on how to avoid freight forwarder hidden fees goes further into the line items that most often go missing.

Surcharges, duties and storage fees are different costs

Sellers often lump every extra charge together, but they come from different places:

  • Carrier surcharges are charged by the ocean carrier and covered above.
  • Duties and tariffs are charged by US customs on the goods themselves. See our guides on 2026 US tariffs for FBA sellers and Section 232 annexes.
  • Demurrage and detention are charged when a container stays too long in the port or out of the carrier’s hands. They are avoidable with planning, and we explain how in demurrage vs detention.

Keeping these separate helps you spot which line to challenge and which is simply the cost of importing.

Planning around surcharges

You cannot control fuel prices or port congestion, but you can control a few things:

  • Book before the peak window. If your holiday stock must land by a firm date, schedule production and booking early so you are not paying peak rates under deadline pressure.
  • Consolidate where it makes sense. Fewer, fuller shipments spread per-shipment fees over more units.
  • Choose the mode on total cost and timing. Our ocean vs air comparison shows when each wins.
  • Understand spot vs contract pricing. Spot quotes move with the market. Our explainer on the freight spot rate covers the trade-offs, and the freight rate benchmark guide helps you judge a quote.
  • Learn the basics of the mode itself. If you are new to sea freight, start with what ocean freight is.

FAQ

What is a peak season surcharge for ocean freight?

A peak season surcharge is an extra per-container fee carriers add when demand for space is higher than the capacity available. It usually applies in the months leading up to the holiday retail season, and sometimes before Lunar New Year. Carriers announce it on their own schedule, so confirm the current notice for your lane.

Is a surcharge part of the base rate?

A base rate covers the ocean movement. The quoted all-in rate can already include specified surcharges. Ask the provider to name the charges it includes and identify any separate costs.

Where can I see which surcharges apply to my shipment?

US carriers must publish tariffs online, showing basic freight plus the assessorial charges and surcharges for the shipment details you enter. Your forwarder can also give you a line-by-line quote for your exact origin, destination, container size and sailing date.

Can a surcharge change after I book?

It depends on your agreement. Ask which charges are fixed, what can pass through at actual cost and how your provider handles new fees announced after booking.

How do I avoid surprise surcharges?

Get a quote that states whether it is all-in, check named items such as destination THC and documentation, and book ahead of peak periods. A DDP service that bundles freight, duties and delivery also gives you a single landed-cost figure to plan around.

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