Freight Glossary
Surcharge – Meaning & Examples
Additional fees added to base freight rates for specific costs or conditions.
- Related terms
- freight surcharge, shipping surcharge, additional charge
Surcharges are fees added on top of base freight rates to cover specific costs. Common ocean surcharges include BAF (bunker adjustment factor for fuel), CAF (currency adjustment), THC (terminal handling), peak season surcharge, and port congestion surcharge. Air freight surcharges include fuel surcharge and security surcharge. Surcharges can significantly increase the total cost and change frequently based on market conditions.
Surcharge examples
- Ocean freight surcharges added $500 to the base rate: BAF $200, THC $200, PSS $100.
How Surcharge is used in freight operations
Surcharge appears in quotations, bookings, shipping documents, and tracking updates. Confirm how it applies to your shipment with your carrier, forwarder, or customs representative, because practice can differ by country and contract.
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Frequently asked questions
What is Surcharge?
Additional fees added to base freight rates for specific costs or conditions.
What is an example of Surcharge?
Ocean freight surcharges added $500 to the base rate: BAF $200, THC $200, PSS $100.