How the shipping price is formed?
Q: How the shipping price is formed?
A: Sea shipping prices can very from month to month and they depend on number of factors.
- BOF(“basic ocean freight”) shipping expenses;
- OTHC(“origin terminal handling charges”) port related expenses;
- DTHC ("destination terminal handling charges") – unloading port expenses;
- CAF ("currency adjustment factor") – currency exchange diference based on BOF;
- BAF ("bunker adjustment factor") – fuel expenses charge calculated in USD for TEU (20 foot container);
- ISPS or SEC ("security charges") – port security related expenses;
- DOC FEE – documentation fee.
There are some seasonal charges - PSS ("peak season surcharge"). View a more complete list of charges or contact us for details.
- PCS ("port congestion surcharge")
- WNS ("winter surcharge") – related in freezing winter conditions in instance St Petersburg – from Dec 1 to March 31.
Also every shipping line applies (“demurrage”) maximum container hold after the equipment discharged at the port. Usually it very between 2 and 21 days. In this period the cargo recipient have to unload the cargo and return the container back to the port. If the period is exceeded there is a penalty between 10-30 EUR a day.