10 Hidden Shipping Fees Every Shipper Should Know
Shipping goods internationally involves more than just freight costs. Various additional charges can impact your budget if you’re not prepared. Here are 10 lesser-known shipping fees that every shipper should be aware of.
Documentation Fees
Shipping requires multiple documents, including bills of lading, export declarations, and certificates of origin. Carriers and freight forwarders often charge processing fees for handling these.
Terminal Handling Charges (THC)
THC covers the cost of loading and unloading containers at the port. These fees vary by port and can significantly impact your overall shipping expenses.
Detention and Demurrage Fees
Demurrage is charged when your cargo remains at the port beyond the free storage period, while detention applies if you delay returning an empty container. Proper scheduling can help you avoid these costly penalties.
Congestion Surcharges
Busy ports impose congestion fees during peak times to compensate for delays. Understanding seasonal trends and alternative routes can help minimize these expenses.
Cargo Inspection Fees
Customs authorities may inspect shipments at random or due to specific concerns. If your cargo is selected, you’ll have to pay additional inspection charges, which can vary by country.
Customs Clearance and Duties
Beyond standard duties and taxes, some shipments require extra clearance processing, which can lead to additional charges. Ensure compliance with destination country regulations to avoid delays and unexpected fees.
Currency Adjustment Factor (CAF)
CAF accounts for fluctuations in currency exchange rates that affect international shipping costs. Carriers apply this surcharge to offset financial risks.
Security Fees
Due to global security regulations, ports and carriers charge security fees to ensure the safe handling of cargo. This fee covers screening, surveillance, and protective measures.
Peak Season Surcharges
During high-demand periods, such as holidays and trade surges, shipping lines impose peak season surcharges. Booking shipments early can help mitigate these costs.
Port Storage Fees
If your cargo isn’t picked up within the designated timeframe, ports charge storage fees. Staying on top of delivery schedules can prevent unnecessary charges.
Understanding these hidden fees can help you plan better and avoid unexpected costs in your shipping process. By staying informed and working with reliable logistics partners, you can manage your shipments more efficiently.