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Freight surcharges

general freight surcharges

Bunker surcharges
imdg surcharges
EU ETS / FEUM Charge

Freight surcharges are fees added to the base freight rate to cover variable costs, risks, and regulatory obligations. They are generally cost-based (e.g., fuel, emissions, hazardous materials) and partly mandated by law.

Surcharges are often quoted  based on the dimensions of the cargo, per unit, per lane metre, or as a percentage of the freight, and they vary by route and cargo type.

Surcharges are usually based on one or more of the following:

  • fuel price (ULSFO/MGO) and consumption
  • cargo characteristics
  • regulation, emissions trading, safety regulations, handling of hazardous substances
  • port and terminal costs
  • operational disruptions (congestion, waiting times, rerouting)

Pricing mechanisms:

  • cost-based surcharges: based on fuel indices or emission costs; updated monthly/quarterly.
  • fixed tariff surcharges: specified in the carrier’s price list by route or port (e.g., IMDG).
  • situational surcharges: e.g., strike surcharges

Bunker surcharge is used to share the risks associated with fuel price fluctuations between the shipper and the carrier. The amount of the surcharge is influenced by the market price of fuel (e.g., ULSFO, MGO) and the vessel’s fuel consumption.

Surcharges are route-specific, updated monthly, and typically expressed in EUR/m, EUR/unit, or as a percentage of the freight.

General freight surcharges are usually related to the characteristics of the cargo (e.g., length and width surcharges) or related additional services (e.g., electrical connections).

IMDG surcharges, for IMDG-classified dangerous goods (DG = Dangerous Goods); based on special handling, segregation and stowage requirements, special documentation, declarations, and inspections.

Environmental charges and emissions-related surcharges, ETS+FEUM; the carbon cost payable by the shipping company for the portion attributable to the specific route and shipment. These include surcharges linked to emissions trading and greenhouse gas emission costs, as well as surcharges related to other environmental obligations, such as fuel usage restrictions in various maritime areas.