Cargo Airplane flying over a freight ship carrying shipping containers

Avoid Hidden Charges in Air and Ocean Freight

Many importers are surprised by the additional hidden charges that can appear on their invoices and how to avoid them.

By John Raymond Infante – Director, Allen & Jones Shipping

Freight rates are just the beginning. Many importers are surprised by the additional charges that can appear on their air freight and ocean freight invoices – charges that aren’t always obvious upfront. Understanding these hidden costs is essential to managing your freight budget and avoiding unpleasant surprises.

1. terminl handeling charges (THC)

THCs are levied by ports for the handling of containers. They vary by location and are often left out of initial quotes. Without visibility, you might assume your all-in rate is lower than it is.

2. document fees

Bills of landing, customs declarations, and certificates of origin all come with fees that can add up quickly. Some forwarders don’t include these in initial quotes, leading to surprises later on.

3. demurrage and detention

As with the previous article, delays in clearing cargo or returning equipment can rack up charges fast. Planning ahead and working with an experienced forwarder helps avoid these penalties.

4. Currency Adjustment Factor (CAF) and Bunker Adjustment Factor (BAF)​

Fuel price fluctuations and currency variations can affect freight costs. Some quotes exclude these factors, leaving you vulnerable to sudden rate hikes.

5. Port Congestion Surcharges​

Busy ports often impose congestion fees when terminals are overloaded. These can be applied with little notice and significantly affect your bottom line.

Understanding and planning for hidden charges is key to protecting your margins. At A&J Shipping, we’re committed to transparent pricing and proactive communication, so you can make informed decisions about your supply chain.

John

Book a 5-minute call with a A&J Shipping expert and get clarity on your next shipment or get in touch with us today at Allen & Jones Shipping to book your logistics transport and keep your business moving forward.