What is EBS fee? How to calculate EBS surcharge?

x Enterprises dealing in import-export goods need to learn about sea freight fees and surcharges, including EBS fees?
x Wondering how to calculate the EBS surcharge?
Based on what factors? Who pays EBS fees? x Do you need to send LCL goods to the US, Germany, Australia,... need the support of a shipping agent or reputable shipping unit?

EBS fee is a fee often collected by shipping lines to offset costs due to fluctuations in gasoline prices. PROSHIP.VN will compile information to clarify the concept of what EBS is and what is the most accurate way to calculate EBS? At the same time, we also introduce to customers the outstanding advantages of LCL LCL shipping service to Chinh Ngach countries at competitively low prices. If you are interested, please consult to make the right choice about a reputable and professional retail consolidation unit.

Shipping contact hotline: 

Ms Tien: 0909 986 247
Ms Dung: 0939 999 247
Ms Duy: 0902 581 247

What is EBS fee? Why do we have to charge EBS fees?

What type of fee is EBS?

What is EBS fee? EBS is a type of surcharge collected on imported and exported goods. EBS stands for "Emergency Bunker Surcharge", meaning fuel surcharge for goods routes to Asia. For goods going to Europe, instead of charging EBS fee, they will charge ESD fee, which means ENS "Entry Summary Declaration".

EBS fee is a fee mentioned quite a lot in import and export activities. This fee is collected by shipping lines to compensate for lost costs due to fluctuations in the petroleum market. However, for many people, especially those who rarely participate in import-export activities, they often do not clearly understand what EBS fees are? Some people even think that this type of fee is included in ocean freight charges.

Fuel surcharge is an amount collected by shipping lines to compensate for lost costs due to fluctuations and fluctuations in the world petroleum market. If the gasoline market fluctuates a lot, this fee will also change a corresponding number of times. However, fuel surcharge is only a type of shipping surcharge, not a fee. It is also not included in the Local Charges of import and export activities.

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What is EBS fee? How to calculate EBS surcharge?
EBS stands for "Emergency Bunker Surcharge" which is understood as fuel surcharge for cargo routes to Asia.

Reasons to collect EBS fees in import-export activities

In the 1970s, when fuel prices skyrocketed with extremely large amplitudes, it created "oil price shocks". The sudden increase in oil prices greatly affects the transportation activities of shipping lines. Specifically, to maintain high-speed container ships to ensure fast transport operations, shipping lines have to pay huge fuel costs.

Meanwhile, gasoline prices "escalated" and increased suddenly, making it impossible for shipping companies, especially in the trade union, to adjust freight rates appropriately to cope. Therefore, shipping lines have to pay a much larger fee to maintain cargo transportation operations.

=> Faced with such reality, adjusting fuel surcharges flexibly is the most optimal way to help shipping lines offset costs. Therefore, fuel or gasoline surcharges have been collected for imported and exported goods during transportation.

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How to calculate EBS surcharge?

After you have an answer about what EBS fee is, it is also really important to learn about how to calculate the EBS surcharge "Emergency Bunker Surcharge". Proship would like to share the calculation method as follows:

In fact, depending on each shipping company's regulations and the actual situation, this fee will change. Shipping lines can charge fuel surcharges as a percentage of the ocean freight or depending on the volume of goods. Many shipping lines also include fuel surcharges for each container.

What is EBS fee? How to calculate EBS surcharge?
The EBS fuel surcharge is calculated depending on the shipping line and shipping association, based on the volume of goods transported at sea.

Depending on how gasoline prices fluctuate, the EBS surcharge will change. When gasoline prices at intermediate ports decrease, surcharges during transportation will decrease. Therefore, please contact directly with the shipping company or transport unit of your choice for advice and quotes. Fuel surcharges will also somewhat affect freight costs.

Shipping contact hotline: 

Ms Tien: 0909 986 247
Ms Dung: 0939 999 247
Ms Duy: 0902 581 247

Who will pay the EBS fuel surcharge?

There is an issue that many people are concerned about: who will pay the EBS surcharge? This question has many people asking and causing controversy today: will the EBS fee be paid by the shipper or by the consignee (consignee/buyer)?

In reality, the payment of EBS fees will be clearly specified in the import-export contract and foreign trade sales contract. If the contract does not clearly state who pays the EBS fee, the shipping company will stipulate this. There is a simple example for you to more easily visualize: in the sales contract between the two parties, the import condition is FOB. With this condition, the regulation is always that the buyer will have to pay the EBS fee.

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* Example: Company X imports a shipment of children's toys from China, FOB price. Orders incur additional EBS fees. Company X and its supplier in China are arguing over who should pay this fee. Company X gave the reason that because this fee arose in China, the supplier had to pay it. The supplier gives the reason that they sell the FOB price and are not the buyer of freight. On the other hand, EBS is a fuel surcharge, so they do not have to pay this fee.

So in this case, which party has to pay this EBS surcharge? To solve the above situation, we need to clarify two issues: which country are the goods imported from and under what conditions? When making a sales contract, the parties should refer to the price of the fees incurred and make agreements and negotiate which party will have to bear these fees when they arise in the contract. To avoid situations like the above from happening, both sides shift responsibility to each other. In case the contract does not specifically state which party pays the EBS fee, where to collect the EBS fee is determined by the shipping company. Based on shipping company law to collect this fee.

=> In short, when completing a sales and import-export contract, the two parties need to pay attention to the general conditions and regulations to avoid unnecessary disputes in the future.

>>See more: What is Certificate Of Conformity?

Should you choose Chinh Ngach retail import-export service at PROSHIP to get the best price support?

PROSHIP.VN is a unit specializing in providing Chinh Ngach retail import and export services to countries such as China, Japan, Korea, USA, Germany, Australia,... by method from Port - Port, Port - Warehouse, Warehouse - Warehouse,... If you are wondering what EBS costs or have any questions related to documents, bills of lading, fees, surcharges,... Proship will have a team of staff dedicated to the business of logistics services. LCL shipping to Chinh Ngach countries at cheap prices with dedicated advice and answers. Or if you need support in completing customs procedures for import and export goods, we will also advise and answer customers thoroughly so that the shipping process is most effective.

Proship.vn, as a consolidator, will collect LCL shipments of many Shippers at CFS, arrange, classify and pack them into one container, then collect them. Arranging transportation from the loading port to the destination port. Such combined packing is called consolidation. The company will provide fixed LCL schedules each week to multiple destinations around the world to help customers plan shipments accurately in advance.

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What is EBS fee? How to calculate EBS surcharge?
The advantages of Proship's LCL shipping service to major countries are cheap freight, high safety, fast professional consolidation process,...

Proship has been, is and will be a cargo agent for many major shipping companies

* Reputable domestic shipping companies in Vietnam:

Vinafco, Vosco, Vinalines, Gemadept, Nasico, Bien Dong, Viet Sun,…

* Prestigious shipping companies with international reputation:

APL, BENLINE, MA-CGM, CNC, HIPPING, COSCO, ECU LINE, EVERGREEN, EMADEPT, HANJIN, HAPAG-LLOYD, HEUNG-A, HUBLIN, HYUNDA, GRAND, NDOTRA, K-LINE, KMG, KMTC, AERSK LIN, INOTRANS, SITC, TS LINE, MCC, MELL, MOL, MSC, VOSA, VVMV, WANHAI, NG MIN, ZIM,…

Proship targets customers

The customers that Proship targets when transporting LCL Chinh Ngach goods:

  • Corporations, domestic and foreign companies that need to transport goods;
  • Factories, projects, general agents and services for domestic goods, international import and export;
  • Small and medium-sized enterprises have a need for international sea transport and import-export for the fastest time and the smallest cost savings.

LCL shipping time to other countries by Chinh Ngach Container

Factors that largely determine the time of import and export of Chinh Ngach retail goods:

  • Location: Departure/arrival port is in the City Center, Inland or Countryside;
  • Shipping time: Holidays (employees are off); weather conditions;
  • Type of goods transported: Some special goods or limited goods will have longer shipping times because of the necessary procedures and documents;
  • Procedures and documents: Quarantine, inspection, providing import and export customs documents,...).

Methods of transportation and delivery of LCL goods from Vietnam - USA, Germany, Australia, Japan, Korea,...

Methods of delivering LCL goods to other countries at Proship:

  • Transporting LCL cargo from Port to Port;
  • Transporting LCL goods from Port to Warehouse;
  • Transporting LCL containers from Warehouse to Warehouse;
  • Transport goods to door upon request;
  • Other accompanying services depend on the specific needs of customers.

Hopefully the above answers have helped your business understand what EBS costs ? How to calculate EBS fees? Who must bear the EBS fee?,...Based on this, import-export business units have more experience to apply EBS effectively in their work. In case you need to use LCL Consolidation Service, combine LCL with many other customers to save shipping costs from Vietnamese Ports - Ports in the US, Germany, Australia, Japan, Korea,...please Please contact Proship at 0909 344 247 .

Shipping contact hotline: 

Ms Tien: 0909 986 247
Ms Dung: 0939 999 247
Ms Duy: 0902 581 247

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