The rate of carriage by ocean

The rate of ocean transport - an example with explanations

Any rate based on a linear tariff. Typically, an agent, having a linear rate, sell the rate specified therein on freight forwarders and cargo owners. However, some freight forwarders, especially large ones, have their own stable relations with various lines, so get them to bid directly, including the discount.

Proposed in response to your request rate may be as follows, for example:

USD 2,100 / 40'ST FIOS SPB-NYC
or USD 2,100 / 40'DV from Free in SPB to Free out NYC
This means: 2100 dollars for one standard 40-foot container from the port of St. Petersburg to the Port Authority of New York on the terms "free in and out" (without the cost of loading and unloading).

The conditions specified in the rate, should be paid particular attention because of the clarity of their language and your understanding will also depend on your transportation costs. In commercial practice, the following abbreviations for the main line of transportation conditions between ports:

  • FIOS - Free in / out (loading and unloading by sender);
  • FILO - Free in / Liner out (loading by sender / unloading at the expense of the line);
  • LIFO - Liner in / Free out (loafing by line / unloading due to the sender);
  • LILO - Liner in / out (loading / unloading at the expense of the line - full liner terms).

Depending on the practices of a specific line or port can be added to the rate of the various allowances:

  • CAF (Currency Adjustment Factor) - exchange rate fluctuations;
  • BAF (Bunker Adjustment Factor) - indexation of price changes on the tank;
  • Wharfage - port duty;
  • CUC (Chassis Using Charge) - fee for the use of the chassis (to be charged in U.S.);

Documentation Fee - a fee for paperwork and many others.

In addition to the port, container can be delivered to the container terminal (container yard) near the port or within the country depending on the activity line in the area. And of course, it can be delivered directly to "door" of the client. With this in mind, the basic linear conditions can be added such as:

  • FICY - Free in / Container yard (without loading at the port / pin up. terminal);
  • LI-Door - Liner in / Door (loading at the port due to line / customer's door).

It should be noted that even with the Transport Door-Door, ie "door" / "door", the line only serves the container at the specified address, but almost never carries insurance / unloading container (stuffing / unstuffing). This question shipper decides on their own or through the forwarder is usually in response to request freight you receive the following response from the shipping line:

Shanghai - STP-1400/2400/2500 USD
These three sums indicate the cost of freight for 20/40/40HC containers;
CAF – 11.47%
Currency Adjustment Factor, which is added to the rate of ocean freight;
BAF - 235USD/TEU
BFA for the 20-foot container, for 40ku respectively 2-fold higher;
ISPS - 7usd - gathering for the security of a container;
THC STP - 270/360 (unloading from the vessel for 20ku/40ku);
Forwarding-165/185 (shipping in port).

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