Do you find yourself confused by the long list of charges on your freight invoice? You’re not alone. International shipping involves a complex web of fees, surcharges, and documentation. Understanding this terminology is the first step to controlling your logistics costs and avoiding unexpected expenses. This definitive glossary breaks down the essential terms for US and EU importers, empowering you to audit your bills and communicate with confidence.

Part 1: Common International Shipping Costs & Charges

Base Freight & Core Charges

• Ocean Freight / Sea Freight: The base cost to transport your goods by sea.

• Freight Collect: Payment term where the receiver (consignee) pays the freight charges.

• Freight Prepaid: Payment term where the shipper (seller) pays the freight charges.

• Bunker Adjustment Factor (BAF): A fuel surcharge applied by the carrier.

• Currency Adjustment Factor (CAF): A surcharge to account for currency exchange fluctuations.

• General Rate Increase (GRI): A general increase in ocean freight rates.

• Peak Season Surcharge (PSS): An additional fee applied during high-demand shipping periods.

Origin & Handling Charges

• Terminal Handling Charge (THC): Fee for handling the container at the port of origin.

• Origin Receipt Charge (ORC): A surcharge covering origin port costs, common from Asian ports.

• Documentation Fee (DOC): Fee for preparing and processing shipping documents.

• Booking Fee: Charge for reserving space on a vessel.

• Export Customs Clearance: Fee for handling export customs declarations.

• Equipment Interchange Receipt (EIR) Fee: Administration fee for container interchange.

• Chassis Usage Fee (CUC): Charge for using a wheeled trailer for container transport.

• Loading & Packing Fees: Includes Packing, Palletization, Shrink Wrapping, and Forklift services.

• Pickup Charge (Picking Up): Cost for collecting the goods from the supplier’s warehouse.

Destination & Regulatory Charges

• Destination Delivery Charge (DDC): Fee for handling at the destination port (common in the US).

• Import Customs Clearance: Fee for handling import customs formalities.

• Demurrage: A charge for containers left at the port beyond the free time.

• Detention / Per Diem: A charge for keeping the container outside the port beyond the free time.

• Import Security Filing (ISF) Fee: US-specific fee for filing importer security data.

• Merchandise Processing Fee (MPF): US Customs fee for processing formal entries.

• Harbor Maintenance Fee (HMF): US fee for port infrastructure maintenance.

• Delivery & Unloading Fees: Includes Drayage, Unloading, and Fulfillment.

• POD (Proof of Delivery) Fee: Charge for providing delivery confirmation.

Additional & Special Fees

• AMS/ACI Filing Fee: Fee for transmitting advance cargo declaration to US/Canadian customs.

• Manifest Amendment Fee (MAF): Charge for correcting a shipping manifest.

• Agency Fee: Compensation for the service provided by a freight agent.

• Insurance Premium: Cost for cargo insurance coverage.

• War Risk Surcharge: Additional premium for sailing through high-risk zones.

• Advancement Fee: Charge for advancing funds on your behalf (e.g., for duties).

Part 2: Essential International Shipping Documents

Transport & Commercial Documents

• Bill of Lading (B/L): The core contract of carriage and title document.

  • Master Bill of Lading (MBL): Issued by the shipping line to the freight forwarder.

  • House Bill of Lading (HBL): Issued by the freight forwarder to the shipper.

  • Telex Release: An electronic release replacing the original Bill of Lading.

• Shipping Instructions (S/O): Details provided by the shipper to book and prepare the shipment.

• Packing List: Itemizes the contents, quantity, and weight of each package.

• Commercial Invoice: Details the value of the goods for customs and payment.

• Certificate of Origin (C/O): Certifies the country where the goods were manufactured.

Customs & Regulatory Documents

• Import Security Filing (ISF): Required for all US imports, filed by the importer.

• Power of Attorney (POA): Authorizes a customs broker to act on your behalf.

• C88 Form (UK): The customs declaration form used for imports into the UK.

• C79 Certificate (UK): The VAT and duty payment document issued by UK customs.

• Arrival Notice: Sent by the carrier to notify the consignee of the shipment’s arrival.

Stop Overpaying on Your International Shipping

Understanding these terms is the first step to optimizing your supply chain costs. The next is partnering with a logistics provider who offers transparent pricing and expert guidance.

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