Post 3 – Understand exports in simple way – Types of Surcharges in Ocean Shipping

Type

Name of Surcharges

Details of the Surcharges

LSS

Low Sulphur Surcharge

The percentage of Sulphur is increased in the fuel; it is done to decrease the emission and gets mandatory sometimes as per the climate action policy taken by Government

PSS

Peak Season Surcharge

Added when there is sudden increase in exports from a location, For Example - Every year before Christmas the exports volume increases from East to West and most of the times PSS is added

WRS

War Risk Surcharge

Added when the vessel passed through an area effected by war which increases risk during vessel passage (also known as TRS - Transition Risk Surcharge)

FS

Fuel Surcharge

It is added when there is sudden hike of fuel rates, for example - It was expected when Iran was about to close Gulf of Hormuz recently in June 2025

BAF

Bunker Adjustment Factor

It varies when there is increase in Fuel price. For Maersk and CMA it is part of freight and can increase even in long term freight as its subject to variability in Fuel price

ODS

Over Dimension Surcharge

Its added for over-dimensional cargo and is part of Freight, it incurs mostly in Open Top and Flat Rake containers