Shipping Carrier Surcharges List

Hello everyone! Today let’s spend about 2 minutes talking about those headache-inducing ocean freight surcharges in international shipping.

First up is the recently trending BAF — Bunker Adjustment Factor (fuel surcharge). With the ongoing tension in the Middle East and increased volatility in international oil prices, shipping lines charge this fee to cover soaring fuel costs. It’s the most volatile component of what we call “ocean freight.”

So besides the BAF fuel surcharge, what other common surcharges affect “ocean freight”?

Category 1: Industry-wide rate increases — shipping lines directly raise the baseline.

• GRI (General Rate Increase): Think of this as a “universal increase notice” collectively issued by shipping lines. It’s typically triggered by comprehensive factors like port congestion or rising operating costs. Once announced, it applies to nearly all routes.
• PSS (Peak Season Surcharge): This is the shipping industry’s version of “peak pricing!” For example, during the peak shipping seasons for Christmas and New Year in the second half of the year, as well as the pre-Chinese New Year shipping rush, space is tight and prices naturally go up.

Category 2: Specific cost allocations.

• CIC (Container Imbalance Charge): Due to imbalanced import/export trade volumes on certain routes (e.g., more exports than imports), shipping lines need to reposition empty containers, and the resulting repositioning costs are shared with cargo owners.
• PCS (Port Congestion Surcharge): If the destination port is severely congested and vessels have to wait a long time for berths, the additional costs incurred are charged as a surcharge.

Category 3: Risk and emergency charges.

• EBS (Emergency Bunker Surcharge): When oil prices spike sharply in a short period and the regular BAF can’t cover the increase, shipping lines may activate this temporary surcharge.
• CAF (Currency Adjustment Factor): When the settlement currency (e.g., USD) depreciates significantly, shipping lines charge this fee to offset exchange rate losses.
• WRS (War Risk Surcharge): When vessels transit through high-risk zones such as the Red Sea or the Middle East, this fee is charged to cover the soaring war risk insurance premiums.

How about that — much clearer now, right?

I’m Lao Tao in international logistics. Let me know in the comments what other industry knowledge you’d like to learn about.