During the process of import and export by sea, a lot of fees will arise. One of the fees that has been applied for many years in Sea Transport is LSS, but not everyone knows exactly what it is. Therefore, PROSHIP.VN , with our skills, experience, and professional knowledge, will collect basic knowledge about shipping fees and surcharges to answer what is LSS Fee, how much LSS fee is. much? How to calculate Lss fee? Who pays the Lss fee?...In parallel with the benefits customers receive from the cheap LCL cargo shipping service to Chinh Ngach countries, interested individuals or business units should consider looking for it.
Shipping contact hotline:
Ms Tien: 0909 986 247
Ms Dung: 0939 999 247
Ms Duy: 0902 581 247
What is LSS fee?
In air and sea transport, LSS surcharge is a type of fee that appears quite often when businesses want to import and export goods. So, What Is Lss Fee? LSS fee stands for "Low Sulfur Surcharge", the fee level is applied differently for each shipping line and long or short shipping route. In addition, LSS fee is often seen under other names (same meaning) such as LSF - Low Sulfur Fuel Surcharge.
This fee is collected by shipping lines to comply with general regulations of the International Maritime Organization (IMO) since 2012 to minimize emissions from sulfur-containing fuel of cargo ships. Shipping lines will use this collected LSS fee to convert to a fuel type that uses less sulfur or invest in upgrading their cargo ships to treat less of this amount of sulfur before releasing it (upgrading costs). can be up to 10 million USD/ship)
Long-term ship upgrading methods are being aggressively implemented by large companies such as Maersk and CMA on the majority of ships. Smaller shipping lines are still using the quicker method of using more environmentally friendly fuel, which is of course more expensive than regular fuel.
Commercial shipping lines call this fee by many different names:
- LSS (low sulfur surcharge);
- LSF (low sulfur fuel surcharge);
- GFS (green fuel surcharge);
- ECA (emission control area charge).
All lines are said to be preparing to levy this tax as a mandatory surcharge on top of freight. And other surcharges in 2019 on all trade routes, especially ECA areas.
=> In general, LSS is a fee for shipping lines to use other clean fuels to enhance their responsibility to protect the environment. And there are currently no regulations clearly stating which party will bear the LSS fee because this is a fee that exporters and importers can negotiate and agree with each other on who will bear the fee.
How is the LSS fee calculated, and who has to pay this fee?
PROSHIP has answered questions about the concept of Lss Fee and next will be the current applicable Lss fee rate as well as indicating the relevant individuals and units responsible for paying the Low Sulfur surcharge. Surcharge LSS. As follows:
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How much is the LSS fee?
LSS fees are collected separately by shipping lines or can be added to sea freight. According to estimates, shipping rates may increase over time. However, currently the LSS fees are being applied as follows:
- 25 – 40 USD/20-foot container of dry goods;
- 50 – 80 USD/40-foot container of dry goods;
- The LSS surcharge for cold goods will be higher than for dry goods.
Low Sulfur Surcharge fee for reference in the following areas:
- Northwest Europe/New York: $50-150;
- Baltic/New York: $150-260;
- Northwest Europe/Savannah: $100-200;
- Baltic/Savannah: $150-300;
- Northwest Europe/East Coast, Canada: $80-260;
- Baltic/East Coast, Canada: $180-370;
- China/Northwest Europe: $30-50;
- China/Baltic: $130-150;
- China/West Coast, US: $35-150;
- China/East Coast, US: $50-60.
Who is subject to the LSS fee?
In addition to the increasing LSS fees, ocean shipping companies also have to bear many different costs to ensure smooth transportation activities between ports. However, besides shipping lines, they are also subject to LSS fees. There are other subjects who are also subject to this fee and a series of other surcharges, including:
- Ship owners, ship operators;
- Charterers;
- Fuel supply and trading agent for ships;
- Insurance companies and credit institutions lend to ship owners.
Is the LSS fee added to the taxable value?
LSS fee needs to be declared in the taxable value because it is an amount that must be added to the taxable value. In case the customs declarant must pay VAT for the LSS surcharge, the VAT amount does not have to be included in the customs value. But if the shipping company/freight carrier does not collect the LSS surcharge, the Enterprise does not need to declare it in the taxable value. Imported goods with LSS fees paid will have to be added to the taxable value, so it will increase the tax costs payable by the Enterprise.
Shipping contact hotline:
Ms Tien: 0909 986 247
Ms Dung: 0939 999 247
Ms Duy: 0902 581 247
Features to note about the LSS surcharge
Regarding the Low Sulfur Surcharge LSS surcharge, Proship would like to share a few things to note as follows:
- Import-export enterprises sign goods purchase and sale contracts. It is recommended to specify who pays this surcharge to clearly state it on the bill of lading. Create a legal basis to determine who must pay the LSS surcharge;
- According to the regulations of the International Maritime Organization (IMO). From January 1, 2020, large ships transporting goods across oceans must use fuel with low sulfur content, only 0.5%. There has been uniformity in the shipping industry. Customers will bear the increased fuel costs. As long as the carrier (shipping line) must clearly and transparently demonstrate the additional costs they must bear to operate the ship;
- Since November 2019, shipping lines have announced LSS surcharge collection. Businesses clearly understand and express their agreement with IMO regulations to protect the environment. This LSS surcharge is applied at the port of loading.
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Is PROSHIP's low-cost LCL freight transportation service to major countries at PROSHIP really good and effective?
In order to fully meet the needs of import and export of Chinh Ngach retail goods, PROSHIP JOINT STOCK COMPANY has closely connected with Agents, International Shipping Lines,... to provide to the market "Cargo transportation services". LCL to Chinh Ngach countries at the cheapest price" is the most competitive in the international shipping market today. We operate according to the motto: Reputation and responsibility always come first, Professionalism from operations to business, Ensuring absolute safety of goods. Note, with this service, each individual customer combining goods with many other customers will have a separate Customs declaration, meaning a container traveling in such a block will have many very clear and transparent Customs declarations.
Our company, as a consolidator, will collect LCL shipments of many Shippers at CFS, arrange, classify and pack them into one container, then Arrange transportation from loading port to destination port. Such combined packing is called Consolidation. Proship will also provide a fixed weekly LCL schedule to many destinations around the world to help you plan your shipments accurately in advance.
Furthermore, the staff in charge of the business of LCL shipping services from Port - Port, Port - Warehouse, Warehouse - Warehouse to China, Japan, Korea, USA, Germany, Australia,... also understand the business very well. Professional services, specialized knowledge of import and export (including What Is Lss Fee - this surcharge is applied in the cost of exploiting goods Local charges along with Terminal Handling charges, Bill of lading fee /Docs fee, CFS warehouse fee, EBS/AMS/AFR fee, telex release fee) should be ready to quickly answer all questions and give reasonable advice on optimal, economical and effective freight transportation solutions. best. Therefore, you can feel secure and confident when sending individual goods together with many other customers at Proship.
Transporting Chinh Ngach LCL import-export goods in blocks to countries by sea:
Below is the method of transporting Chinh Ngach retail goods to import and export countries:
- For goods exported from HCM (at Cat Lai Port, Saigon,...) - Australia, Germany, USA, Japan, Korea,...: Proship door to door delivery - Pick up at the factory in Vietnam and deliver to the recipient's hand goods in other countries and vice versa, including all sea freight costs...
- For goods imported from Australia, Germany, America, Japan, Korea,... - HCM (at Cat Lai Port, Saigon,...): Proship will arrange to contact the shipper to check the expected delivery date information to Arrange suitable train schedules, book the earliest train to transport to Vietnam and deliver to customers.
Shipping method - LCL delivery at Proship
Proship applies flexible LCL shipping and delivery methods as follows:
- Port to Port transportation;
- Transport from Port to Warehouse;
- Transporting containers from Warehouse to Warehouse;
- Transport goods to door upon request;
- Other accompanying services depend on the specific needs of customers.
Shipping companies have been and will be strategic partners of Proship
Shipping companies have been, are and will be strategic partners of Proship:
APL, BENLINE, MA-CGM, CNC, COSCO, HIPPING, ECU LINE, EVERGREEN, EMADEPT, GRAND, HANJIN, HAPAG-LLOYD, HEUNG-A, HUBLIN, HYUNDA, NDOTRA, K-LINE, KMG, KMTC, AERSK LIN, MCC, MELL, MOL, MSC, AMSUNG, NORTH, FREIRHT, NYK, OOCL, ORIENTAL, ORIMAS, PIL, RCL, SINOKOR, INOTRANS, SITC, TS LINE, VOSA, VVMV, WANHAI, NG MIN, ZIM,... to raise the bar further services now and in the future.
Advantages LCL shipping service to the US, Germany, Australia, Japan, Korea, China,... by Official Container
Proship sea freight import and export service for LCL goods to main countries with outstanding advantages such as:
- Proship is a unit that has close links with major branded shipping companies and units in the market;
- Freight service for transporting LCL goods to Chinh Ngach countries is extremely good, stable schedule, priority is given to fast delivery and exploitation of goods from shipping lines, ports, and CFS warehouses;
- CFS warehouses collect retail goods located in strategic locations nationwide, creating an effective and complete LCL solution;
- The staff is professionally trained, dedicated and experienced;
- Arrange all goods, regular freight frequency, large transport capacity, no quantity limit;
- The contract clearly stipulates the responsibilities of the Unit transporting LCL goods by sea container to other countries;
- Cargo insurance when importing and exporting LCL goods from Vietnamese Ports - Ports in Japan, Korea, China, USA, Germany, Australia,...;
- Commitment to confidentiality of customer information as well as information of goods provided by customers;
- Equipped with Container trailers, Containers of all sizes, multi-load loads, modern and sturdy cargo lifting and unloading machinery and equipment;
- The network of agents and partners is widespread across countries, so you can rest assured that the goods will be sent to the fastest countries;
- Direct shipping to/from North American, South American, European and Asian ports;
- Consolidate goods in many countries (USA, Germany, Australia, Japan, Korea, China,...) and store goods awaiting delivery;
- Strong application of IT in supporting visitors and finding product information quickly and conveniently;
- There are many direct export and import shipments every week;
- Consolidation service at international transit stations, service coverage to transit routes;
- You can track your order directly through the Websites or through our consulting staff;
- Compensation policy for goods at market price if shipping errors are detected;
- Many service packages for customers to choose from such as: CY-CY shipping, Door to Door shipping, Shipping according to Incoterms terms in the contract.
The content related to the Low Sulfur Surcharge LSS surcharge that Proship has conveyed above, hopefully has helped you understand what the LSS Fee is , who has to pay the LSS fee and how much it costs...Transportation needs Shipping LCL goods to Mainland countries at cheap prices by sea is increasing with fierce competition from service quality to price, so to get the best guarantee for all requirements, please refer to our services. I. For further details, please contact 0909 344 247 and a staff member in charge of this business will advise you directly.
Shipping contact hotline:
Ms Tien: 0909 986 247
Ms Dung: 0939 999 247
Ms Duy: 0902 581 247
