An ocean freight quote is not a single price. It's a structured breakdown of charges from multiple parties — the carrier, the origin terminal, the destination terminal, customs authorities, and your forwarder. Most shippers see a total at the bottom and move on. That's exactly when surprises happen.
Understanding what each line item represents, who is charging it, and what drives its cost is how you compare quotes accurately, challenge errors, and plan landed costs without guesswork.
What are the three sections of an ocean freight quote?
A well-structured quote splits charges into three buckets: origin, ocean freight, and destination. Each bucket covers a different geographic leg and a different set of counterparties. Charges at the origin are typically the seller's or exporter's responsibility under most Incoterms; destination charges fall to the importer. Ocean freight sits in the middle.
When you're comparing quotes from two forwarders, always compare section by section — not just the total. One quote may include THC at both ends while another excludes destination charges entirely. The lower total may actually be the more expensive shipment once you add what's missing.
Origin charges
These are costs incurred before the cargo leaves the export country.
TRK — Origin trucking / drayage. The cost of moving the cargo from the shipper's warehouse to the origin terminal. For FCL shipments this is a dedicated container move; for LCL it may be a shared truck to the consolidation warehouse.
CFS — Container Freight Station fee (LCL). On LCL shipments, your cargo moves through a container freight station where it's consolidated with other shippers' goods. CFS fees cover the handling at that facility — typically priced per CBM (cubic metre) or by the weight/measure rule, whichever is greater.
VGM — Verified Gross Mass. Since 2016, the IMO SOLAS amendment requires that every container has a verified gross mass before it's loaded onto a vessel. Your forwarder or the terminal charges a small fee to weigh and submit the VGM certificate. It's not optional.
Export customs / clearance. Depending on Incoterms and origin country requirements, export customs filing may appear as a line item. In some countries this is bundled into a clearance fee; in others it's itemised separately.
Ocean freight charges
This is the core of the quote — the cost of moving the container across the water.
| OFR — Ocean Freight Rate | The base cost to move the container from origin port to destination port. FCL is priced per container (20GP, 40GP, 40HC, etc.); LCL is priced per CBM. |
|---|---|
| BAF — Bunker Adjustment Factor | A fuel surcharge the carrier adds on top of OFR to reflect fluctuating bunker (ship fuel) costs. Expressed as a flat fee per container or per CBM. Varies by carrier and trade lane. |
| CAF — Currency Adjustment Factor | A surcharge added when significant currency movements affect the carrier's cost base on a trade lane. Not always present; depends on the lane. |
| PSS — Peak Season Surcharge | Added by carriers during periods of high demand — typically pre-Chinese New Year and mid-year retail build season. Temporary and announced in advance. |
| GRI — General Rate Increase | A carrier-announced rate increase applied across a trade lane. Carriers publish GRI notices 30 days in advance; your forwarder should lock in a rate before the effective date if possible. |
| EBS / LSS — Emergency / Low-Sulphur Surcharge | Additional fuel or environmental compliance surcharges applied when regulatory costs spike (e.g. IMO 2020 low-sulphur fuel rules). May appear by various carrier-specific names. |
The OFR is the line item carriers compete most visibly on. But a low OFR alongside a high BAF can easily flip the comparison. Always look at the combined ocean freight total, not just the base rate.
Destination charges
These are the charges that accumulate once the vessel arrives at the destination port — and the section where the most surprises hide.
THC — Terminal Handling Charge. A fee levied by the terminal operator (not the carrier) for the physical handling of the container in the terminal: unloading from the vessel, moving through the yard, and staging for pickup or delivery. THC appears at both the origin terminal (export) and the destination terminal (import). It's not optional and is not part of the ocean freight rate — even if a carrier advertises an "all-in" rate, check whether THC is genuinely included or added separately.
B/L Fee — Bill of Lading fee. The carrier charges for issuing the bill of lading, which is the title document for the cargo. On a "telex release" (surrendered at origin), you may see an equivalent document release fee at destination instead.
Destination CFS (LCL). The mirror image of origin CFS — your cargo is deconsolidated from the container at the destination freight station before being released to you. Again priced per CBM, and often higher than the origin CFS because destination handling markets are less competitive.
ISF — Importer Security Filing (US imports). A US Customs and Border Protection requirement for all ocean imports into the United States. The ISF (also called "10+2") must be filed at least 24 hours before the vessel departs the foreign origin port. Your customs broker or forwarder handles this filing; the ISF fee covers that service. Non-compliance penalties are steep — this line item is not optional for US-bound cargo.
AMS — Automated Manifest System (US imports). A companion to ISF — the carrier-side filing of cargo manifest data with US CBP. Often bundled into the B/L fee or listed separately. Similar advance electronic filing requirements exist for EU (ENS), UK, Canada, and other markets.
CBF — Customs Brokerage Fee. The fee your customs broker charges for preparing and submitting the import entry. Separate from any government-levied duties or taxes. Complexity — number of tariff lines, document preparation, special regimes — drives this fee up or down.
Exam fees. If CBP or the destination country's customs authority selects the shipment for a physical exam (X-ray, tailgate, intensive), costs for the exam, re-devanning, and any extended terminal time fall to the importer. These are not predictable in advance and won't appear on your quote — but they can be significant. Budget a contingency, especially for new trade lanes.
Destination trucking / drayage (TRK). The final-mile cost from the destination terminal to the consignee's door. For door-to-door shipments this appears on the quote; for port-to-door, confirm whether it's included or to be arranged separately.
FCL vs LCL: how the charge structure differs
On FCL shipments, pricing is per container: OFR, BAF, THC, and demurrage/detention exposure are all based on the container unit. You have full control of the box and its equipment.
On LCL shipments, pricing shifts to a per-CBM basis (or weight/measure rule). CFS fees at both ends replace the equipment-handling model. You don't pay for empty space, but you do pay consolidation and deconsolidation handling at every leg — and transit time is longer because the container waits until it's economically full before departing.
When comparing FCL vs LCL for a given shipment, calculate the all-in per-CBM cost for each — including origin and destination CFS on the LCL side and any dead freight on the FCL side — before deciding. Our freight calculator can help with this comparison.
Which charges are negotiable?
Some line items are fixed; others have room.
Typically fixed: THC (set by the terminal), VGM, ISF/AMS (regulated filing fees), government duties and taxes.
Carrier-influenced: OFR (carriers compete on this), BAF (some carriers offer fixed-BAF contracts), GRI/PSS (depends on whether you lock a rate before the effective date), B/L fees.
Forwarder-influenced: CBF (your broker's fee), CFS mark-ups, drayage (depends on your forwarder's carrier relationships and volumes), cargo insurance.
When requesting quotes, ask each forwarder to itemise all charges per section. A quote that bundles everything into two or three lines is hiding something — either mark-ups rolled into the ocean rate, or destination charges that will appear later as "local charges."
Reading a quote for a specific trade lane
The exact mix of surcharges varies by trade lane, carrier, and time of year. A Shanghai to Los Angeles shipment will carry ISF and AMS for the US leg; a Shanghai to Los Angeles rate sheet in peak season will carry a PSS that a slow-season quote won't. A Singapore to Rotterdam quote may include ENS filing fees for EU customs entry that wouldn't appear on an intra-Asia quote.
This is why comparing line-by-line matters. The charges that differ between forwarders are often the ones you didn't know to ask about.
For a deeper look at what the entire shipment process looks like from booking to delivery, the how shipping works guide covers the full move-type options and handoff points. And if you're unsure which Incoterm governs your cost and risk split, the Incoterms guide maps each term to the charges each party is responsible for.
