How much do you know about shipping fees?
一.Freight forwarder miscellaneous fees that owners need to know
In addition to the “pure” freight, there are various incidentals, some of which are charged by the shipowner and some of which are for shipment .Collected by the port/port terminal, and some are collected by the forwarder himself. Moreover, many fees are not clearly marked .Accurate, very flexible. Some charges will be charged to the consignee in addition to the shipper. This could easily produce two A trap: it is some freight agent to collect fees more under false pretenses, 2 it is freight agent to adjust between consignee and consignor, transfer Part of the cost.
Generally, the consignor looks for the freight forwarder, the consignor is the customer, the freight forwarder will try to lower the cost to please the consignor,whereupon to charge less, and to the destination port to charge customers (consignee) more money, rob Peter to pay Paul, and vice versa. this that is why the cost of the same goods will be lower if we find a forwarder on CIF basis. In FOB,the forwarder appointed by the customer, the RMB incidentals are much higher.
Knowing these facts, we should not covet a temporary bargain by thinking that the lower the price, the better. But it must be important first determine the composition of the price, to avoid some bad freight forwarders after shipping arbitrary charges or transferred to customers, affecting us with customers affection and cooperation.
First of all, we will have a certain understanding of the composition of freight and incidental expenses, learn to distinguish “rules” charging items and disorderly charges.
Common incidentals include:
二. CIC fees
CIC fee is the abbreviation of ”Container Inbalance Charge ”, also translated as “equipment management fee”, this CIC fee is mainly caused by the following reasons:
1. Seasonal variations in cargo traffic across the world’s liner routes lead to an imbalance in cargo flows: Western countries usually have cargo at the beginning of the year, In the off-season of transportation, the volume of boxes rises gradually in April and May, and the volume of trade begins to increase, and it will lead to trade before Christmas a small upsurge in the volume.
2. Trade imbalance between countries or regions at both ends of the route: China and other East Asian countries export far more goods to Europe than from Europe the goods imported to China and other East Asian regions, the Far East North America route also has similar significant problems.
3. The differences in the types and nature of import and export goods, as well as the differences in freight and handling charges, also cause the import and export containers imbalance.
三.CFF Fees
A CONTAINER FREIGHT STATION (CFS) is a place for handling LCL. It handles the handover of LCL and the distribution of LCL. After loading, the boxes will be sent to CY(Container Yard) and imported goods will be handed over by CY box, unpack, tally, keep, and finally distribute to each consignee. At the same time can also be commissioned by the carrier to seal and issue the station receipts and so on.
CFS fees are usually calculated on a square basis. Because CFS is the cost of LCL, it is at the port of shipment and the port of destination. Under FOB terms, CFS is listed separately and charged to exporter or factory. Since FOB is freight to collect, port of shipment charges are not included in the freight charges. Under CIF terms, load the CFS fee at the port of shipment has been included in the sea freight rate reported to you by the forwarder, so CFS will not be collected at the port of shipment. but importers still have to pay their CFS fees at the port of destination.
四. EBS fees
Emerent Bunker Surchanges. This cost is generally due to international crude oil prices continue to climb, more than the ability of shipowners to bear, so shipowners in the market is weak, unable to increase the sea freight case, in order to reduce the cost of loss, and increase the cost.
Do WE need to pay EBS fee for FOB? The answer is no, EBS is a surcharge of sea freight, not belong to FOB local fees, so customers do not need to pay EBS fees when doing FOB. However, at present some shipping companies by we cannot receive the cost from the customer, so we transfer the EBS to the FOB customer, if the customer encounters the shipping company or the cargo when the agent requests to collect EBS fees, he/she can try to negotiate with the customer and ask the customer to bear the fees.
五. Local charges
六. Expenses borne among several trade modes
1.Ex Works (EXW=Ex Works) :
Place of delivery: factory or warehouse of exporting country; Transportation: buyer’s responsibility; Insurance: buyer’s responsibility; Export hand continued: Buyer’s responsibility; Import formalities: buyer’s responsibility.
2. FOB=Free on Borad:
Place of delivery: Port of shipment; Transportation: buyer’s responsibility; Insurance: buyer’s responsibility; Export formalities: seller’s responsibility; Import formalities: buyer’s responsibility.
3.Cost+ Freight +Insurance, CIF=Cost+Insurance+Freight
Place of delivery: Port of shipment; Transportation: seller’s responsibility; Insurance: seller’s responsibility; Export formalities: seller’s responsibility; Import formalities: seller’s responsibility.
4.Cost and Freight (CFR=Cost+Freight) :
Place of delivery: Port of shipment; Transportation: seller’s responsibility; Insurance: buyer’s responsibility; Export formalities: seller’s responsibility; Into the port formalities: buyer is responsible .