Home / Logistics Knowledge / FCL Shipping Charges Breakdown: THC, BAF, CAF and Local Fees
A full-container quote is more than the ocean freight. Knowing what each line item means helps you compare quotes fairly and avoid surprises.
Every quote splits into ocean freight (the rate to move the box by sea) and local charges (handling at the origin and destination ports). A port-to-port quote shows only the sea rate; a door-to-door quote bundles trucking and sometimes clearance. Always confirm which scope you are comparing.
This is the base rate per container for the sea leg. It is quoted per box (20ft, 40ft, 40HC, reefer) and depends on the lane, season, and volume you commit.
Carriers add floating surcharges on top of the base ocean rate. BAF (bunker adjustment) tracks fuel cost, CAF (currency adjustment) tracks exchange rates, PSS (peak season) appears before busy periods, and GRI (general rate increase) is a periodic uplift. These change from quarter to quarter.
Terminal Handling Charge is the port fee for moving the container in and out of the terminal, charged at both the load and discharge ports.
BAF passes through fuel-price swings and CAF passes through currency movement. Carriers adjust them as costs change, often each quarter.
No. Local charges at both ends add a meaningful amount. Get a door-to-door or fully itemised quote so you can budget the total.
The ocean freight and some local fees are negotiable, especially once you commit regular volume. Compare quotes from several forwarders.
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