Calculating the total cost of shipping a container internationally involves much more than just the base ocean freight rate. Shippers must account for a variety of surcharges, local fees, and variable costs that affect the final "landed cost" of goods. This calculator helps you aggregate these line items into a clear total.
1. Base Freight vs. "All-In" Rates
The Base Ocean Freight is the cost to move a container from the port of loading to the port of discharge. However, this number rarely represents the invoice total. Shipping lines apply various surcharges to mitigate risks such as fuel price volatility and currency fluctuations.
2. Key Shipping Surcharges Explained
BAF (Bunker Adjustment Factor): A floating surcharge that correlates with the price of oil. As fuel costs for container ships rise, carriers pass this cost to the shipper.
CAF (Currency Adjustment Factor): Applied when there is a disparity between the currency of the carrier's costs and the currency of the freight rate (usually USD). It is typically calculated as a percentage of the base freight.
THC (Terminal Handling Charges): Fees charged by the port terminals for loading and unloading the container from the vessel and moving it to the stack. You will often see OTHC (Origin) and DTHC (Destination).
PSS (Peak Season Surcharge): During high-volume periods (typically August through November, ahead of the holiday retail season), carriers charge a premium due to limited space availability.
3. FCL vs. LCL Pricing
This calculator is designed primarily for FCL (Full Container Load) shipments, where you rent the entire container (20ft TEU or 40ft FEU). If you do not have enough cargo to fill a container, you might use LCL (Less than Container Load), where you pay per Cubic Meter (CBM). While LCL has a lower base rate for small shipments, the warehousing and consolidation fees (CFS charges) are often higher per unit than FCL.
4. Landside Costs: Trucking and Customs
The "Ocean" portion is only one leg of the journey. Drayage (Trucking) costs cover the movement of the container from the port to your warehouse. Additionally, Customs Clearance fees and duties must be paid before goods can be released. Always factor in the commercial value of your cargo to calculate insurance premiums accurately, ensuring you are covered in case of General Average or loss.