An ocean freight rate is not a price, it is a stack. The number a carrier or forwarder quotes as "the rate" is one line in a structure that can easily double it by the time the container is delivered. Reading the stack is the difference between a budget that holds and one that does not.
The base ocean freight
This is the carrier's charge for moving the container from load port to discharge port. It moves with capacity, season and lane. On a contracted lane it is fixed for a period. On the spot market it is quoted per sailing and can change between the quote and the booking.
The base rate is quoted per container for FCL and on weight or measure for LCL, whichever produces the higher figure. If you have never worked out which one applies to your cargo, chargeable weight in ocean freight shows the calculation.
The surcharges that ride on it
| Line | What it is | Moves with |
|---|---|---|
| BAF or bunker adjustment | Fuel cost recovery | Fuel prices, revised periodically |
| CAF or currency adjustment | Exchange rate exposure | Currency of the trade |
| PSS or peak season surcharge | Demand peaks | Season and lane |
| GRI or general rate increase | Carrier repricing of a trade | Announced dates |
| War risk or security | Routing risk | Route conditions |
| Low sulphur or environmental | Fuel regulation compliance | Regulatory regime |
Surcharges are where quotes stop being comparable. One forwarder folds them into an all-in number, another itemises them, and the second quote looks more expensive while costing less.
Terminal and port charges
Terminal handling charges apply at both ends and pay the terminal for lifting and moving the box. They are set locally, they differ by port, and they are not negotiable in most trades. We cover what they include in terminal handling charges.
Alongside them sit documentation fees, seal fees, port security charges, and at destination the charges that appear only after arrival: delivery order, container release, and the demurrage clock if the container is not collected in time. That clock is explained in demurrage and detention.
Inland legs
Pickup at origin, drayage at destination, and any transloading. On door to door pricing these are inside the number. On port to port pricing they are not, and that is the single most common reason a quote is beaten on paper and lost in reality. See door to door ocean freight for what "door" should include.
Contract versus spot
Contracted rates buy predictability and, usually, priority when space tightens. Spot rates buy flexibility and can be cheaper in a soft market. Most shippers with steady volume run a contract for the base flow and use spot for peaks. If your volume is small or seasonal, a forwarder's contracted allocation gives you contract-like stability without committing to volumes you cannot fill.
What actually moves your rate
- Density. Light, bulky cargo pays on volume. Better packing lowers the bill without touching the rate.
- Port pair. A direct service beats a transshipment on time and often on total cost.
- Notice. Bookings placed against the cut-off pay for scarcity.
- Incoterm. Who controls the freight decides who chooses the carrier and who absorbs the origin charges.
- Consistency. Regular weekly volume prices better than sporadic containers of the same annual total.
FAQ
Why do ocean freight rates change so much?
Ocean capacity is fixed in the short term and demand is not. When ships are full, rates rise quickly; when capacity returns, they fall just as fast.
What is included in an all-in rate?
It should include the base ocean freight, the carrier surcharges and terminal handling at both ends. Confirm whether inland transport, customs work and destination release charges are inside or outside.
Are rates per container or per cubic metre?
Per container for FCL. For LCL, on weight or measure, whichever is greater.
What is a GRI?
A general rate increase, an announced repricing of a trade lane by carriers, usually effective on a set date.
How far ahead should I book?
On stable lanes, one to two weeks. Before peak season or a known GRI date, earlier. Late bookings pay the premium.
Want a rate with every line visible before you commit? Ask us for a full breakdown on your lane.