Iner Freight

- May 15, 2018-

Basic rate

(BASIC RATE)

It refers to the basic freight charge per unit of charge (such as one freight ton). The basic rates include grade rates, freight rates, ad valorem rates, special rates and average rates. Liner shipping is composed of two parts: basic freight and surcharge.

A surcharge

(SURCHARGES)

In order to maintain the stability of the basic rate in a certain period and to correctly reflect the shipping costs of various kinds of goods in each port, the liner company stipulates a variety of costs in addition to the basic rate.

(1) BUNKER SURCHARGE OR BUNKER ADJUSTMENT FACTOR--B.A.F.: increase when fuel prices suddenly rise.

(2) the devaluation surcharge (DEVALUATION SURCHARGE OR CURRENCY ADJUSTMENT FACTOR--C.A.F.): when the currency devaluates, the ship will not reduce the actual income and add the additional fee according to a certain percentage of the basic price.

(3) transshipment surcharge (TRANSHIPMENT SURCHARGE): any goods shipped to a non basic port should be transferred to the port of destination, the additional fee charged by the ship, including the transshipment fee and the second freight. (4) direct shipping surcharge (DIRECT ADDITIONAL): when goods shipped to non basic ports reach a certain amount of goods, the ship company may arrange a surcharge added to the port without transshipment.

(5) HEAVY LIFT ADDITIONAL (LONG LENGTH ADDITIONAL) and super large surcharge (SURCHARGE OF BULKY CARGO). An additional charge is added when the gross weight or length or volume of a cargo exceeds or reaches the value of this regulation.