Definition
The fuel surcharge on ocean freight that moves with bunker prices, charged on top of the base rate.
See it in practice
Related terms in Charges & fees
Demurrage
A charge when a container stays at the port/terminal beyond the free time — billed per day until it is picked up.
Detention
A charge when equipment (usually a container) is kept outside the terminal longer than the allowed free time before being returned.
Free time
The number of days a container may stay at the terminal (demurrage-free) or with the consignee (detention-free) before daily charges start. Negotiable at quotation.
THC (Terminal Handling Charge)
The fee terminals charge for loading/unloading containers at origin (OTHC) or destination (DTHC).
CAF (Currency Adjustment Factor)
A surcharge compensating carriers for exchange-rate movements between the tariff currency and their cost currencies.
LSS (Low Sulphur Surcharge)
A surcharge covering the extra cost of low-sulphur marine fuel required by IMO 2020 emission rules.