What are the hidden fees in your ocean freight quote? 12 costs exporters should verify before booking

A low ocean freight quote can become an expensive shipment if important destination charges are not clarified before booking. Many exporters compare only the freight rate, but the actual landed cost depends on terminal handling charges, destination local charges, demurrage, detention, container repair liability and several carrier surcharges.

Before confirming any booking, exporters should obtain a written confirmation of all chargeable items from the shipping line or freight forwarder. An incomplete quotation may result in unexpected invoices after cargo reaches destination.

1. Ocean freight is only one part of the invoice

A quotation may include only

• Ocean Freight

• BAF (Bunker Adjustment Factor)

• CAF

• ISPS

• Documentation

while excluding

• Destination Terminal Handling Charges (DTHC)

• Delivery Order charges

• Port storage

• Customs examination

• Container cleaning

• Empty return handling

Many disputes occur because these exclusions are mentioned only in the quotation's fine print.

2. Ask for destination local charges before booking

This is probably the most overlooked item.

Many exporters assume that destination charges are the buyer's responsibility. However, if they are not disclosed clearly, disputes can arise under CIF, CFR or even some FOB transactions.

Always request

• Complete destination local charge schedule

• Terminal Handling Charges (DTHC)

• Documentation fee

• Delivery Order fee

• Port handling

• Port storage tariff

• Container release fee

• Empty return depot details

Request these charges before the booking is confirmed.

3. Obtain written confirmation of destination detention and demurrage free days

One of the biggest financial risks is assuming that sufficient free time is available.

Ask the carrier to confirm in writing:

• Demurrage free days

• Detention free days

• Combined D&D policy (if applicable)

• When the clock starts

• Whether weekends and holidays are included

Demurrage applies while the container remains inside the terminal beyond the free period, whereas detention applies after the container leaves the terminal and is returned late to the shipping line.

4. Understand the current situation at Khor Fakkan

Following increased transshipment volumes through Khor Fakkan, operational practices have changed.

Many shipments currently receive only 0–3 days of port demurrage free time, depending on the terminal arrangement and shipping line. As a result, carriers are moving import containers out of the terminal quickly to reduce yard congestion and operational costs. Exporters routing cargo through Khor Fakkan should therefore confirm the applicable free time for their specific booking rather than relying on historical practices. Carrier policies vary and may change according to service and trade lane.

(I would avoid stating "all lines give 0 or 3 days" because that is not universally published. Instead, present it as an operational trend unless you have tariff evidence from each carrier.)

5. Who pays for container damage?

Many exporters never discuss this until an invoice arrives.

Clarify

• Container inspection process

• Joint survey procedure

• Repair approval process

• Cleaning charges

• Wear-and-tear policy

• Damage responsibility

Obtain written confirmation from the carrier regarding the inspection procedure.

6. Watch for carrier surcharges

Common additional charges include:

• Peak Season Surcharge (PSS)

• General Rate Increase (GRI)

• Emergency Fuel Surcharge

• War Risk Surcharge

• Security Surcharge

• Terminal Handling Charge

• Low Sulphur Surcharge

Some of these may change between quotation and sailing if the validity period expires.

7. Ask one question before accepting any quote

Instead of asking:

"What is your freight rate?"

Ask:

"Please confirm every charge payable at origin and destination, including any charges that may become applicable after vessel arrival."

That single question often prevents costly surprises.

Exporter's pre-booking checklist

Create a checklist box with:

☐ Ocean freight validity
☐ BAF / CAF / PSS included?
☐ Destination local charges attached
☐ DTHC confirmed
☐ Destination demurrage free days confirmed
☐ Destination detention free days confirmed
☐ Empty return depot confirmed
☐ Container damage liability confirmed
☐ Repair policy confirmed
☐ Port storage tariff confirmed
☐ Delivery Order charges confirmed
☐ All exclusions listed in writing