The number on your quote is only the starting point. Knowing what charges get added to it is how you stay in control of your shipping costs.
When you ship goods, the freight charges you pay are not just limited to one line on the invoice.
Understanding these charges can help you compare quotes fairly and plan better for the true landed cost of moving goods across the globe.
In this article, we break down the common types of freight charges you can expect, what may trigger them, and why they show up on your invoice.
Freight charges are the costs associated with moving goods from one place to another.
They cover the cost of transporting a shipment from its origin to its destination. The rate depends on several factors, including the mode of transportation, shipment size and weight, route, service level, carrier, equipment required, and current market conditions.
The total cost is usually made up of two parts:
Who pays for each cost also depends on the Incoterms agreed with your supplier, as they help determine who is responsible for each cost along the journey.
Surcharges are usually tied to market, route, or operating conditions. They exist across all modes but are most varied in ocean freight. They can change frequently, which makes them one of the less predictable parts of a freight invoice.
The most common charges you may see include:
A fuel surcharge helps carriers recover changes in fuel costs.
In ocean freight, it may appear as a Bunker Adjustment Factor (BAF). In road, rail, and air freight, it may appear as a fuel surcharge or fuel adjustment charge.
This charge is used to account for exchange rate changes.
It is most common in international freight, especially when rates are quoted in one currency, but costs are incurred or settled in another.
A Peak Season Surcharge (PSS) may be added during periods of high demand.
This is common when carrier space is tight, such as the months leading up to major retail seasons or periods when import volumes increase significantly.
This surcharge may apply when ports, terminals, rail ramps, or other gateways are backed up.
Carriers use it to recover costs linked to delays, longer dwell times, equipment imbalances, or additional operating pressure at affected locations.
This covers costs linked to cargo and transport security requirements.
In ocean freight, this may appear as an ISPS charge, which relates to the International Ship and Port Facility Security Code. In air freight, security-related fees may be connected to cargo screening and other mandatory air cargo security processes.
This surcharge covers the cost of moving and handling a container at the port terminal.
It typically appears as a Destination Terminal Handling Charge (DTHC).
Beyond these six, carriers sometimes introduce additional surcharges in response to extraordinary circumstances, such as emergency risk surcharges when specific routes become more expensive or dangerous to operate. However, these tend to be temporary and tied to conditions in a particular lane.
Your freight forwarder can tell you which ones currently apply to your shipment.
Accessorial charges are additional service fees that are triggered by the needs of a shipment or by events that occur during the movement of goods. Common accessorial charges include:
Beyond these, you may also incur costs for cargo insurance, packing, inspections, or delivery appointments.
At Cole International, we offer trade consulting and freight forwarding services to help Canadian businesses move their goods efficiently and understand the full cost of every shipment.
Reach out to one of our trade professionals to discuss your freight charges and build a shipping plan that keeps your cargo moving.