| With container transport ocean freight rates rising by | | | | host of myriad costs, which may not even be |
| an astronomical 55% in three months, it is easy to | | | | associated with container or ocean freight rate. |
| see that these rates will continue to climb further. | | | | These charges include duty and taxes, importer |
| Therefore, this is the optimal time to renegotiate | | | | security filing (such as 10+2 or ISF), customs |
| rates. | | | | brokerage, container transloading as well as, or |
| Several Charges | | | | stripping, interim warehousing and several other |
| Several charges can comprise the overall ocean | | | | charges. |
| freight rates as well as delivery expenses over | | | | Negotiation Complex |
| typical import shipments. Certain types of these rates | | | | The process of negotiating ocean freight rates is |
| can be negotiated with the forwarder or the carrier | | | | rather complex and you need to have an in-depth |
| (if there is enough frequency and volume of | | | | knowledge of the way the rates are calculated. |
| shipment), especially if you have a working | | | | Depending on whether this will be a recurring business |
| knowledge of the method of calculating such ocean | | | | with every shipper or whether you have several |
| freight rates. Some of the common components of | | | | shipments of ‘one-time' nature, the amount of |
| the ocean freight rates include bunker adjustment | | | | product shipped at a time and if this is repetitive, in |
| factor surcharge, Panama Canal charge, Alameda | | | | each shipment, frequency etc. will decide whether |
| Corridor surcharge, Advance Manifest surcharge, | | | | you want direct negotiation with ocean carriers or |
| Suez Transit surcharge, Currency Adjustment Factor, | | | | want to leverage freight forwarder. |
| Chassis Usage surcharge, Origin Arbitraries, | | | | Transit Times |
| Destination Delivery charge, terminal handling charge, | | | | The transit times used for door to door shipment will |
| war risk surcharge, Aden Gulf surcharge etc. | | | | be a critical factor to decide your negotiation on |
| Depends On Incoterms | | | | ocean freight rates. Depending on whether you will |
| The origin charges payable on the ocean freight rates | | | | be shipping to major port and decide to truck across |
| will depend on the Incoterms or terms of the sale. | | | | several distribution centers or if it will be sent to a |
| These might include origin documentation fee, origin | | | | single DC, will decide the ocean freight rates you |
| receiving charge, destination terminal handling charges | | | | negotiate. Other aspects include factors like whether |
| as well as terminal handling charge. In case the | | | | you intend to move containers as they are into inland |
| shipment is being transported inland, several charges | | | | DC in, which case difficulties arise according to rail |
| such as destination delivery charges, MLB or | | | | charges and ocean carrier. The forwarder or customs |
| MiniLandBridge also called Inland Point Intermodal, | | | | broker will mostly manage trucking of container |
| Inland Fuel surcharge etc. | | | | delivery from as well as to port better than the |
| Myriad Charges | | | | carrier itself. Else, you need to arrange trucking |
| Sometimes, the ocean freight rates might involve a | | | | requirements. |