x Individuals, businesses, and new shippers participating in import-export activities need to clearly understand the types of fees and surcharges, including GRI and PSS fees?
x Are you wondering why shipping companies charge PSS fees and GRI fees?
x Shippers want to learn about solutions to minimize PSS and GRI fees?
At Proship.vn, we will clarify the concept of what PSS fee is, what GRI fee is; how to minimize PSS and GRI fees; The reason why shipping lines apply GRI and PSS fees,... along with other common surcharges in the field of logistics, import and export.
What are PSS and GRI fees?
What is the PSS Surcharge?
What is pss surcharge? PSS stands for "Peak Season Surcharge", also known as peak season surcharge during the transportation of goods. This fee is often collected by shipping lines from the seller or buyer of goods when global shipping demand increases.
Each shipping company usually has its own PSS fee collection plan. This surcharge is usually based on the actual transport needs on the route. Therefore, PSS fees may increase or decrease depending on market conditions.
What is the GRI Surcharge?
What is the Gri fee? GRI or General Rate Increase fee is an increased shipping fee. An additional fee that shipping lines apply on all shipping routes or certain shipping routes.
This fee is often applied for short periods of time, during peak seasons when transportation demand increases or when the market fluctuates.
Solutions to minimize PSS and GRI fees in import and export
How to minimize pss surcharge and what is gri fee reduction? To optimize shipping costs, minimize surcharges such as GRI and PSS, ensuring the import-export process goes smoothly during peak seasons. Businesses should note:
Make detailed plans before transportation
High transportation demand during peak season leads to overload and congestion. To limit GRI and PSS surcharges, detailed transportation planning is necessary. It is necessary to prioritize which goods to ship first and allocate reasonable delivery time. This helps reduce delays and surcharges caused by overcrowding.
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Consider longer transit times
If urgent delivery is not needed, consider extending the shipping time for the shipment. This helps avoid congestion at the port and limits the risk of goods being held up for several days. Extending hours helps reduce costs by avoiding extra charges incurred during peak times.
Contact and coordinate closely with shipping lines and freight service providers so that shipments are not delayed and minimize costs incurred during shipment delays.
Limit the use of intermediaries
To minimize PSS surcharges, GRI should prioritize choosing shipping companies that ship directly instead of going through intermediaries. This not only helps shorten delivery time but also avoids costs incurred when having to go through many intermediaries.
At the end of each update period, compare the prices of different shipping lines and predict the GRI and PSS surcharges of shipping lines with price increases or regularly update the GRI and PSS surcharge notices to choose a suitable partner and shipping plan. fit.
Why do shipping lines collect GRI and PSS fees in import and export?
What is the reason why shipping lines charge pss fees and what are gri fees? The answer is:
Balance supply and demand
When transportation demand increases beyond service supply capacity, GRI and PSS are applied to adjust freight rates, helping to limit overload and keep the transportation system stable, optimizing profits. .
Offset rising costs
Fuel prices, labor wages and other operating costs often increase, especially during peak seasons and periods of market volatility. GRI and PSS surcharges help shipping lines offset these costs, ensuring profits are maintained.
Coping with market fluctuations
When the international shipping market fluctuates due to factors such as trade wars, economic crises or natural disasters, GRI and PSS help shipping lines maintain stability in freight prices and maintain profits. .
Maintain service quality
Rising transport demand causes costs to increase significantly because shipping lines need more resources to ensure transport quality such as improving ships, maintaining facilities and improving operational efficiency. GRI and PSS surcharges are used to maintain and improve the service quality of shipping lines.
* Note: In fact, shipping lines will collect GRI and PSS surcharges based on the supply and demand situation at that time.
Surcharges in Logistics, import and export
Besides the peak season surcharge (PSS), there are many other surcharges in the field of import and export, reflecting the complexity and diversity of this activity. Some types of surcharges you need to know include:
- Port Congestion Surcharge (PCS – Port Congestion Surcharge):
Applicable when the port experiences congestion, slowing down the loading and unloading process, leading to slower ships and related costs.
- Currency Adjustment Factor (CAF) surcharge:
Collected from shippers to offset fees incurred due to foreign currency exchange rate fluctuations.
- Bunker Adjustment Factor (BAF) surcharge:
Collection from shippers to cope with fluctuations in fuel prices. BAF applies to shipping routes to Europe.
- Delivery Order fee (D/O – Delivery Order fee):
Payable when the consignee wants to get a delivery order from the shipping line or shipping agent.
- Terminal Handling Charge (THC)
Revenue to compensate for loading and unloading work at the port, including gathering containers and loading and unloading goods to and from the port.
- Container Imbalance Charge (CIC – Container Imbalance Charge):
A fee to compensate for the cost of transporting empty containers from places with excess containers to places with a shortage of containers.
- Fuel surcharge (EBS – Emergency Bunker Surcharge):
Collected when world gasoline prices fluctuate, but applies to cargo routes to Asia.
Proship Logistics, with many years of experience in the field of domestic and international sea container shipping, has clarified the definition of what the pss fee is as well as what the gri fee is so that every business and shipper can identify it.
It can be said that GRI and PSS surcharges play an important role in adjusting shipping costs, especially during peak periods and when the market fluctuates. For more details about surcharges in import and export - Contact us now 0909 344 247.
