How to Read an Ocean Freight Quote: Line Items and Surcharges Explained

How to read an ocean freight quote is the question that causes the most confusion when you compare offers. One quote shows a low ocean rate but becomes expensive once the extras are added; another wraps everything into one figure, but it is unclear what is included. This guide walks you through the line items of a sea freight quote, the difference between all-in and itemised pricing, and how to read validity terms.

The basic structure of a freight quote

A sea freight quote usually has three parts:

Origin charges: costs incurred at and before the port of loading.
Ocean freight and surcharges: the port-to-port carriage and related surcharges.
Destination charges: costs incurred at and after the port of discharge.

Which part is yours depends on the Incoterms rule in your sales contract. Under FOB, for example, ocean freight and destination charges are generally the buyer's; under CIF the seller pays the ocean freight. Be clear about what you are responsible for before you read the numbers.

Ocean freight and surcharges

Ocean freight (base rate)

The basic port-to-port charge, quoted per container for FCL or per volume/weight for LCL (W/M). FCL quotes typically show separate rates for 20', 40' and 40'HC. LCL is charged per cubic metre or per tonne, whichever is greater; you can check this yourself with our freight calculator.

BAF (Bunker Adjustment Factor)

A fuel surcharge reflecting changes in bunker prices. Lines usually revise it at set intervals. Because of low-sulphur fuel rules, some lines show part of it as a separate item, such as an LSS (Low Sulphur Surcharge).

CAF (Currency Adjustment Factor)

A surcharge to offset currency fluctuations, usually a percentage of the freight. Not every line or trade applies it.

PSS (Peak Season Surcharge)

Applied in busy seasons when demand exceeds capacity. It is normally announced in advance with an effective date.

GRI (General Rate Increase)

A general increase in the base rate on certain trades. Always ask whether your quote is protected from upcoming GRIs.

Other possible surcharges

Emissions-related surcharges: because of schemes such as the EU Emissions Trading System (EU ETS), some lines apply a separate emissions surcharge.
Risk and contingency surcharges: lines may announce temporary surcharges for war risk, canal disruption or port congestion. These can change quickly, so confirm the situation on the date of the quote.
Advance filing fees: some destinations require an electronic security filing before loading (for example AMS for the US and ENS for the EU), which may be charged separately.

Port and documentation charges

THC (Terminal Handling Charge)

Charged for handling the container at the terminal: lifting it on or off the ship and moving it within the terminal. Origin THC (OTHC) and destination THC (DTHC) are separate items, so check which one is included.

ISPS fee

Covers port security measures under the International Ship and Port Facility Security Code (ISPS Code), usually per container.

Seal fee

The cost of the numbered high-security seal fitted to the container doors.

B/L and documentation fees

Bill of lading issuance (documentation fee), telex release fees and amendment fees fall here. For definitions, see our logistics glossary.

Other origin and destination items

Inland haulage (bringing the container to your factory and on to the port), customs clearance, VGM weighing, terminal storage, delivery order fees and container return charges may all appear as separate lines. On a door-to-door quote, check each of these items individually.

Reading a quote step by step

When a quote arrives, work through it in this order:

Define the scope: is it port-to-port or door-to-door, and are origin and destination clearly stated?
Check the equipment: do the container type and quantity, or the LCL volume and weight, match your details?
Group the items: total origin charges, ocean freight and destination charges separately.
Separate the units: do not mix per-container, per-B/L and per-W/M charges; per-B/L fees can noticeably change the total on small shipments.
Read the exclusions: the "excluded" or "not included" notes at the bottom matter as much as the price.

All-in or itemised?

An all-in quote combines certain items into one total. It is easy to compare, but "all-in" does not always mean "everything included".

An itemised quote shows each charge separately. It is more transparent and makes it easier to see which item has changed.

Whichever you get, ask:

Which items are included and which are excluded?
Are BAF and other surcharges fixed, or will those valid on the loading date apply?
Are destination charges (DTHC, delivery order and so on) included?
Which currency is the price in, and are some items in different currencies?
How many days of free time are included for container use?

When comparing two quotes, always line up the same scope (door-to-door or port-to-port, for example) and the same items.

Validity and conditions

Freight rates change often, so read the validity conditions carefully:

Validity date: the date until which the rate applies. On some quotes the vessel's sailing date, not the booking date, is what counts; clarify this.
"Subject to" wording: phrases such as "subject to space and equipment availability" or "subject to GRI/PSS" mean the rate may change later.
Cargo details: the rate is for general cargo; dangerous, out-of-gauge or heavy cargo is priced differently. Check weight limits and the commodity description.
Transit time and transhipment: is it a direct service or via a hub? An estimated transit time is not a commitment.
Free time and currency: note the container free time and the currency of each item; items in different currencies can shift the total as exchange rates move.
Payment terms: whether freight is prepaid or collect should be consistent between the quote and the bill of lading.

Frequently asked questions

Is the cheapest ocean rate always the cheapest quote?

No. A low base rate can be offset by high destination charges or surcharges. Compare the total cost on the same scope.

Why does BAF change so often?

BAF is tied to fuel prices and lines revise it periodically. Ask which date's BAF will apply to your shipment.

Does an all-in price include customs clearance?

Usually not, but it depends on the scope of the quote. Customs clearance and duties are normally handled separately, so clarify this at quotation stage.

What happens if the quote expires?

The rate is re-quoted and may change with market conditions on that date. Booking within the validity period is the safest approach.

Our sea freight quotes at Medius show the items clearly and state exactly what is included. Send us your shipment details through the quote form.