BAF, CAF, THC: Ocean Freight Surcharges Explained
Ocean freight involves multiple surcharges beyond the base rate: BAF (fuel adjustment), CAF (currency adjustment), THC (terminal handling), ISPS (security), and CFS charges. These can add 20-40% to base freight.
Ocean Freight Surcharges
Container shipping quotes often exclude surcharges that add 20-40% to the base ocean freight rate. Understanding each component is essential for accurate cost planning.
BAF (Bunker Adjustment Factor)
Compensates for ship fuel (bunker) price fluctuations. Ranges from 100-300 USD per container. Updated monthly. EU ETS carbon costs are increasingly added on top.
CAF (Currency Adjustment Factor)
Compensates for exchange rate movements. Applied when freight is denominated in one currency but costs incurred in another.
THC (Terminal Handling Charge)
Port-side container handling fee. Applied at both origin and destination.
| Port | 20' THC | 40' THC |
|---|---|---|
| Istanbul | 150-200 USD | 200-300 USD |
| Hamburg | 200-250 EUR | 300-400 EUR |
| Rotterdam | 180-230 EUR | 280-370 EUR |
Other Surcharges
- ISPS: Port security (5-20 USD)
- CFS: Container freight station (LCL consolidation)
- PSS: Peak Season Surcharge
- GRI: General Rate Increase
- War Risk: Conflict zone transit surcharge
- B/L fee: Document processing (30-50 USD)
FAQ
How much do surcharges add?
20-40% on top of base freight. Request all-in quotes.
Are they negotiable?
Standard surcharges are fixed. Total price can be negotiated for volume.
Kolay Parsiyel surcharges?
Standard charges included in quoted price. No hidden fees.
What is all-in pricing?
One price covering freight plus all surcharges. Best for fair comparison.
References
- World Shipping Council
- Drewry Container Rates
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