The freight rate has two major components—basic ocean 

freight and surcharges—and is commonly quoted and 

settled in U.S. dollars. Basic ocean freight is charged by 

liners for each pricing unit (such as 1 FEU or TEU) of 

cargo shipped under the CY/CY term. Surcharges are the 

additional fees charged by liners according to the specific 

terms of carriage, fuel prices, peak or off-peak seasons, 

industry practices, etc. Examples include bunker fuel 

surcharge, currency surcharge, peak season surcharge, 

war risk surcharge, congestion surcharge, canal 

surcharge, International Security Port Surcharge, and 

inland transshipment charges. In addition to the regular 

freight, international container shippers also need to bear 

a list of expenses quoted in their local currencies, such as 

terminal handling charges, documentation charges, telex 

release charges, customs declaration charges, container 

loading charges, and trucking charges.

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