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The Ocean Freight Cost: How to Calculate & Sea Charges List

Sea freight is the most common shipping method for exporters, but they don’t know how the sea freight is calculated. In this article, I will introduce the relevant knowledge about sea freight to help you understand the composition of the sea waybill and make the right decision.

What are sea freight charges?

The sea freight cost is that the client must pay for all costs of shipping the cargo to the destination port by sea. The freight quotation includes the cost of the entire transportation process, including land fee, operation fee, transportation fee; customs fee, declaration fee, etc. Choose different services, the price is not the same, for example, the cost of DDP is higher than DDU, but the premise of DDU is that the customer can clear customs.

What agreements are required when calculating the ocean cost?

It is complicated to calculate the sea shipping cost. So you need to understand what part of the shipping fee is your responsibility. The intercom is published by ICC (International Chamber of Commerce), it not only divides the risk responsibilities of buyers and sellers but also divides the payment costs of both parties.

Commonly used intercoms are the following:

1. DDU(Delivered Duty Unpaid)

Under the DDU shipping intercom, the seller must bear all costs but does not include import procedures and customs duties for the delivery of the cargo to the destination, including freight, insurance premiums, export taxes, and related costs + appropriate profits + production costs.

2. DDP(Delivered Duty Paid)

It is a convenient way for you. The seller must bear all risks and costs of transporting the goods to the named destination, including any “taxes” payable at the destination if customs formalities are required.

sea freight rates
3. FCA

Under the FCA intercom, the buyer pays for all shipping costs.

4. EXW

If using the EXW, the buyer must inform the freight forwarder to pick up the cargo from the seller’s factory or warehouse. It means that the buyer needs to pay for all shipping costs.

5. FOB

Under FOB, the sellers need to shoulder the responsible that delivering the cargo to the port of beginning and loading the cargo on the board.

6. CIF

CIF means cost insurance and freight, it refers to the sellers paying for the cost of shipping cargo from the factory to the destination and applying for marine insurance. But the buyer pays the insurance price and bears all risks after the cargo is loaded on the board.

Ocean freight base rates: FCL vs. LCL

Less than container load shipping cost

1. What is LCL?

LCL means that your cargo does not fill with a whole container, the cargo from different clients fills with one container. The clients just to pay for the space you hold. Compare with FCL, LCL is cheaper than FCL.

2.How to calculate the LCL?

The price of LCL cargo is calculated according to the price per kilogram or CBM. First of all, it is necessary to determine whether it is heavy goods or light goods.

If the volume weight is> 166.67 KG, it is heavy cargo. The volume weight is < 166.67KG, it is a light cargo. Heavy cargo will be charged according to the actual weight. Light cargo will be charged according to the material weight.

Full container load shipping cost

1. What is FCL?

FCL means that the amount of cargo can occupy a whole container or a container can only hold the goods of one client. So clients need to pay for one container.

2. How to calculate the FCL?

The whole load refers to cargo that can fill a container. The calculation of this kind of goods is simple, it is calculated according to how much per container is, and the specifications of the container can be divided into 20GP, 40GP, and 40HQ.




What does the ocean freight charges list include?

In addition to the most basic costs, sea freight also includes some other surcharges and so on. Here are some of the surcharges you will need.

1. Trucking fees

It refers to the cost of transporting the cargo from the factory to the port of origin. The price is calculated according to the bulk cargo or the whole cargo. The trucking fee is calculated depends on according to the kilogram and the transportation distance.

2. Packaging fee

It refers to the cost of packaging materials and labor costs for packaging the goods.

3. Storage Fee

The fee that stores the cargo after arrives at the warehouse. The storage fee is determined by the following factors, the length, width, and height of the goods, storage time, storage month, etc.

4. THC (Terminal Handling Charge)

THC refers to the cost of transporting the goods to the port, and the loading and unloading company stacking and handling.

5. CAF (Currency Adjustment Factor)

A fee is charged to avoid exchange rate risks. Due to changes in exchange rates, foreign currencies often depreciate. To compensate for this possible loss, the transportation company often charges a certain surcharge.

6. Fuel Surcharge

Fuel charges are to be paid for transporting goods. It is calculated by how much per kilo.

7. Insurance premium

It refers to the insurer is responsible for the compensation for the loss of the goods caused by natural disasters and accidents during the transportation of the cargo.

8. Overweight and over-length surcharge

When the cargo does not conform to the normal size, overweight and over-length will require additional packaging fees and labor costs.

9. Customs declaration fee

The fee incurred by entrusting a freight forwarder or a customs broker to make an export declaration to the customs.

10. Document fee

It is also called the bill of lading fee, which is incurred by the shipping company issuing the bill of lading for the export of goods.

What are the factors affecting ocean freight rates?

1. The nature of the goods

The value and weight of the goods have a greater impact on the price. If shipping high-value goods or dangerous cargo, the transportation price will be expensive. The heavy cargo will affect the tonnage and space utilization of the ship and the transportation price will also be high.

2. Market situation

Affected by the off-season and peak season. There are more goods in peak season, the ocean shipping space is limited, and the price is rising. There are few goods in the off-season, and the shipping company will give some discounts to attract customers.

3. Freight forwarding company

If the freight forwarding company you choose has long-term cooperation with the shipping company and has established a trusting relationship, the shipping company may give certain discounts.

4. Oil prices and exchange rates

Shipping is mostly paid in US dollars, which is greatly affected by the exchange rate.

Why choose our ocean freight quote service?

Compare to other freight forwarder companies; Airsupply  has established strong partnerships with many shipping companies to get the best discounts. We also have a professional team to help you formulate the most suitable transportation plan. We are familiar with the shipping routes, customs clearance, and transportation procedures of various countries.

The ocean freight services we can provide include:

1. Reasonable FCL and LCL shipping price.

2. Professional sea logistics expert.

3. Transportation of sensitive items such as e-cigarettes.

4. Reliable customs clearance.

Letting a professional freight forwarder help you transport the cargo will reduce a lot of unnecessary troubles. Click the button below and you can talk to our experts. You only need to provide basic information about the cargo, and you can get the best shipping price.

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