One of the most common frustrations among importers and exporters is receiving a final invoice that differs from the original quote. Understanding what every charge on your freight invoice represents — and whether it is legitimate — is a critical skill for managing logistics costs.
Origin Charges
THC — Terminal Handling Charge (Origin)
Covers the cost of handling the container at the origin terminal:
- Crane operations to lift the container from the truck onto the stack
- Movement within the terminal yard
- Loading the container onto the vessel
THC is charged per container and varies by port and carrier. In some markets, carriers include THC in the sea freight rate; in others, it is listed separately. Always check whether your quote is inclusive or exclusive of THC.
Typical range: $100–$350 per container depending on port
POL Customs Clearance Fee
The customs broker's professional fee for filing the export declaration and liaising with customs authorities at the port of loading.
Typical range: $50–$200 depending on complexity
Origin Inland Trucking
Transport from the shipper's warehouse/factory to the port terminal or CFS.
Rates vary based on distance, container type, and market conditions. For FCL, the carrier typically provides the container for stuffing; the trucker collects it from a depot and delivers it to the terminal when laden.
Ocean Freight Surcharges
BAF / FAF — Bunker/Fuel Adjustment Factor
Compensates the carrier for fluctuating fuel (bunker) costs. Bunker prices fluctuate significantly with oil prices. BAF is usually quoted per container and updated monthly or quarterly.
CAF — Currency Adjustment Factor
Compensates for exchange rate fluctuations between the freight billing currency (typically USD) and the carrier's base currency.
PSS — Peak Season Surcharge
Applied during high-demand periods (typically Q3–Q4 when shippers prepare for Christmas and Golden Week in China). PSS can add $200–$500 per container during peak periods.
EBS — Emergency Bunker Surcharge
A temporary surcharge applied when fuel prices spike beyond expected BAF coverage. Typically announced with short notice by carriers.
GRI — General Rate Increase
Periodic base rate increases announced by carriers. GRIs are typically announced monthly and take effect at the start of the following month.
PCS — Port Congestion Surcharge
Applied at ports experiencing unusual congestion that increases carrier costs (extended berth waiting, extra fuel for slow steaming, etc.).
Destination Charges
DTHC — Destination Terminal Handling Charge
The destination equivalent of origin THC — covers crane operations to lift the container from the vessel, yard movement, and container positioning at the destination terminal.
Typical range: $100–$400 per container depending on port
POD Customs Clearance Fee
Import customs broker fees at the destination port. May include:
- Filing the import declaration
- Customs examination liaison
- Duty payment administration
Destination Inland Trucking
Transport from the destination port to the consignee's warehouse.
Demurrage
Container storage charges at the terminal after free time expires. Free time is typically 3–7 days (varies by carrier and port). After free time: $50–$200/day per container.
Always know your free time before the vessel arrives.
Detention
Charges for keeping the container (at the shipper's or consignee's premises, outside the terminal) beyond the free detention period. Different from demurrage — demurrage is in-terminal, detention is outside.
Documentation Charges
BL Fee — Bill of Lading Fee
The administrative charge for issuing the Bill of Lading. Covers documentation processing, manifest filing, and B/L issuance.
Typical range: $50–$150 per B/L
BL Amendment Fee
Charged when changes are required to a B/L that has already been issued. Can range from $50–$250 per amendment depending on the carrier and timing.
Telex Release Fee
Charged when the shipper surrenders original B/Ls at origin and instructs the carrier to release cargo at destination without physical B/L presentation.
How to Audit Your Freight Invoice
- Compare against the original quote — every item on the invoice should correspond to a line in the quote
- Check container and shipment details — ensure charges reference the correct booking
- Verify free time — if demurrage is charged, verify the free time expiry date
- Question unexpected charges — request documentation for any charge not in the original quote
- Request carrier tariff reference — surcharges must be listed in the carrier's published tariff
Understanding your freight invoice protects you from billing errors and ensures you always pay only what you legitimately owe.
