Freight quotes: a complete overview of key terms

What’s included in your freight quote? A closer look

Understanding sea freight quotes can be challenging, with many terms and abbreviations that may not be immediately clear. At Cargoplot, we believe in transparency, so we’re here to help you understand your freight quote. A freight quote provides a breakdown of the costs for transporting goods from point A to point B and typically consists of three main components:

Pre-Carriage: Activities before the container is shipped from the port of origin.
Carriage: The actual transport from the port of loading to the port of discharge.
On-Carriage: Activities after the container arrives at the destination port.

Below, we explain these components and the associated surcharges, so you can better understand and compare your quotes.

Pre-Carriage: activities before shipping

Pre-Carriage includes all actions required to prepare your goods for export and transport them to the port of origin. Key costs and surcharges in this phase include:

Chassis Utilization Surcharge: Fees for using a chassis to transport the container to the port.
Fuel Surcharge: Additional charges reflecting fluctuating fuel prices.
Packaging Costs: Costs for packing the goods and loading them into the container.
Customs Clearance Fees: Charges for handling export formalities, such as customs declarations.
Documentation Fees: Costs for creating export documents, certificates, or licenses.

These costs cover everything that happens before your container is loaded onto the ship.

Carriage: the main transport segment

Carriage refers to the transportation of the container from the port of loading to the port of discharge. Here are the key terms and fees you’ll likely encounter:

ISPS (International Security Port Surcharge): Fees for port and container security.
Low Sulphur Surcharge: Charges for using low-emission fuels.
THC (Terminal Handling Charges): Costs for moving the container within the port, applicable at both the origin and destination ports.
BL-Fee (Bill of Lading Fee): A fee for issuing the Bill of Lading, a key document in the shipping process.
Export Service Fee: Charges by the shipping agent for coordinating the shipment.
Documentation Fees: Costs for additional administrative tasks and document processing.

These terms help you understand the main transport-related charges in your freight quote.

On-Carriage: activities after arrival

On-Carriage covers all activities that take place after the container arrives at the destination port, such as transporting the goods to a warehouse or final destination. Common costs include:

Chassis Utilization Surcharge: Fees for using a chassis to move the container to its next location.
Fuel Surcharge: Additional charges for transportation away from the port.
Unloading Costs: Fees for unpacking the container and palletizing the goods.
Customs Clearance Fees: Costs for import clearance by a customs broker.
Documentation Fees: Administrative costs for processing any required import documents.
Demurrage/Detention: Penalties for containers that remain at the port too long (demurrage) or are returned late (detention).

Why understanding these terms matters

With so many abbreviations, fees, and terms, it can be difficult to evaluate and compare quotes accurately. Knowing how your quote is structured helps you determine whether it is fair and market-aligned.

Keep in mind that the incoterm also plays a major role in determining responsibilities and costs. Learn more in our comprehensive guide to incoterms.

How Cargoplot helps

At Cargoplot, we believe freight quotes should be simple and transparent. Our platform makes it easy to compare prices and freight forwarders, ensuring you get the best price and service. Now that you understand freight quotes, get a real-time shipping rate for your cargo. Compare costs instantly—Request a Quote!

Need help understanding your quote or advice on your shipment? Contact us today. Our team is here to assist you!