X The business are you participating in the field of import and export and encounter many specialized terms, including Surcharge?
X You want to know which surcharge surcharges in international transport?
X and the shippers want to find out how Surcharge plays?
What is the concept of Surcharge, there are some types of surcharge, Surcharge plays an important role in import and export, ... All will be by Proship.vn we answer and through here the owners and businesses also know when the new Surcharge costs in international freight.
What is Surcharge? Surcha costs incurred?
To clarify the concept and cases of Surcharge arising, and Proship read the following content:
What is Surcharge?
What is Surcharge? Surcharge is an import surcharge that plays an important role in import and export. This is an unofficial cost and is not listed on foreign trade contracts.
In 1981, this surcharges applied to control and prevent inflation. In addition to the surcharges for credit cards applied, the collections from surcharges are also applied to the logistics industry, businesses need to find out accurate information to statistics the import and export costs.
In case of incurred charge in international transport
In case of incurred charge during international transportation:
- Rules of countries:
Depending on the specific regulations of countries on freight, it may require additional shipping operators;
- Change foreign exchange rate:
When the foreign exchange rate fluctuates, the shipping applies additional surcharges to compensate for the increasing operating costs;
- Increased fuel costs:
As fuel prices rise, transportists often apply surcharges to compensate for increased operating costs;
- Ship security:
Shipping lines may apply ISPS surcharges to ensure compliance with this provision.
The role of Surcharge in import and export
What is the role of Surcharge in import and export? Surcharge plays an important role in the transport and logistics industry, especially in the field of import and export. The main role of Surcharge must mention:
Surcharge helps to ensure profit
Surcharge will ensure the profits of transport and logistics businesses in the market conditions are volatile. Transporters can maintain a stable and non -loss profit when faced with risks and costs that are not within expected.
Surcharge helps stabilize costs
In the process of freight, there will be categories that the carrier cannot calculate such as fuel price fluctuations, port congestion, foreign exchange rate fluctuations, ... Surcharge helps shipping to offset these costs without having to adjust the official charges.
Surcharge is like a risk provision
This is a room if the risk occurs in transportation such as high fuel prices, port congestion, or money market fluctuations. Surcharge helps shipping respond promptly and flexibly with these unexpected situations without affecting too much on business activities.
Surcharge promotes the use of the service more effectively
This type of cost promotes freight service more effectively. The delivery process is more favorable because there is an additional fee for unwanted situations. This fee helps stabilize profits for shipping units.
Surcharge helps adjust supply and demand
Surcharge can be used to adjust supply and demand in the transport market. During the peak season, when the demand for transportation increases, the application of surcharges helps to regulate supply and demand and ensure that carriers can still provide services to meet the needs of the market.
Surcharge surcharges in international transport
Frequent surcharges are encountered by prhipi statistics of the same name and describe in detail through the following table:
| No | Abbreviated name | Support type | Effect |
| 1 | THC | Terminal Handling Charge | It is a fee for businesses to pay at the port such as unloading goods, gathering goods, ... |
| 2 | Baf | Bunker Adjustment Factor | As an additional fuel price surcharge, this revenue is collected from the owner of the goods. |
| 3 | CAF | Currency Adjustment Factor | As an extra range of foreign exchange rate fluctuations, this revenue is collected from the owner of the goods. |
| 4 | COD | Change of Destination | It is an additional charge when the arrival of the goods has changed, this is the revenue in import and export collected by the shipping company. |
| 5 | Ddc | Destination Delivery Charge | As shipping surcharges at the destination port, this revenue is collected by the ship owner. |
| 6 | PCS | Panama Canal Surcharge | It is an additional charge for goods shipped through Panama canal. |
| 7 | PCS | Port congestion surcharge | It is an extra charge when the goods are clogged, affecting the transportation process of other ships. |
| 8 | PSS | Peak season surcharge | Is the freight fee shipped in the peak season in Europe. |
| 9 | SCS | Suez Canal Surcharge | Is an additional charge for goods transported through the Suez canal. |
| 10 | D/O | Delivery Order Fee | Is the delivery order, the delivery order is used when going to the gathering yard to receive the goods. |
| 11 | AMS | Advanced Manifest System Fee | As a mandatory revenue from the United States, Canada or other areas, when there are goods, it is transported to this area. |
| 12 | DHL | Shipping fee by DHL | Is the freight fee in the form of fast delivery by DHL. |
| 13 | Handling fee | It is the fee for shipping lines, and the reception organizations set out from shipper/consignee. | |
| 14 | Voucher fee | Is the incurred when shipper/consignee thanks to the Forwarder to help packing list. | |
| 15 | ANB | As a revenue generated when transporting an export shipment, it is necessary to distribute Bill of Lading. | |
| 16 | CFS | Container Freight Station Fee | It is an additional charge while unloading from containers to the warehouse for retail shipments. |
| 17 | Editing fee b/l | It is an additional charge during the shipper process that receives the goods but b/l occurs that the error needs to be edited immediately. | |
| 18 | Electricity fee | It is the fee that the shipping company collects extra when it is necessary to plug in cooling or freezing for containers. | |
| 19 | IFB | Collection of imported goods | Is the revenue collected by Forwarder overseas agents. |
Some notes need to know about surcharge surcharges
Join Proship to continue updating what are the following Surcharge notes:
- Expected and forecast:
Surcharge management requires businesses to regularly update and predict factors that can affect shipping costs such as fuel price fluctuations, exchange rate changes, port status.
- Understand the contract terms:
Businesses need to understand the terms and conditions related to Surcharge in the contract with shipping service providers.
- Cost optimization:
To minimize the impact of Surcharge, businesses should consider optimizing strategies for shipping and effective supply chain planning.
What are the Surcharge , what kind of surcharge and how important in import and export activities have been shared above. When there is a need to send goods, you can talk to the prooship unit through 0909 344 247 for advice on the types of surcharge to help optimize cost effectively.
