Terms

BAF (Bunker Adjustment Factor)

Bunker Adjustment Factor. This factor changes several times per year. It may be charged in cost units (dollars or euros), or as a percentage of the freight amount.

B/L (Bill of Lading)

Bill of lading. Regardless of the number of containers, only one bill of lading is charged. It is much more profitable to ship the entire party under one bill of lading than to issue a separate bill of lading for each container.

Bosphorus Surcharge

Surcharge for the ship passage in Bosphorus

CAF (Currency Adjustment Factor)

Currency Adjustment Factor. BAF and CAF values are different for different lines.

Congestion Surcharge

Extra fee charged to compensate the additional costs associated with the delay of ships in congested ports.

Demurrage

Above-limit time of container use, upon expiration of which the fine in the specified amount shall be paid (required to accelerate the return of empty containers back to the port).

GRI (General Rate Increase)

General Rate Increase. It is added to the base freight rates, applied to any and all goods and fixed by conference members.

High Cube Surcharge

High Cube Surcharge is 10% of sea freight, applicable to all goods which height exceed 2,25 meters.

IMO Surcharge

Surcharge for hazardous cargo.

ISPS (International Security Port Surcharge)

International Security Surcharge. The surcharge appeared in 2004 is related to the hardened actions aimed on safe functioning of ports and their security. It is $6–10, that is insignificant part of total amount.

ORC/DDC

Fee for additional transportation services: handling operations from the ship’s board, container movement within the terminal etc.

PSS (Peak Season Surcharge)

Peak Season Surcharge. It may be applicable for very popular destinations from China and South-East Asia ports due to the high demand for this service. For their regular customers, the carriers can make concessions and do not charge PSS

Security

Security surcharge for transportation.

Storage

Fee for container storage in a port (required to free the port’s places quicker for loading of newly arriving containers at the terminal)

THC (Terminal Handling Charges)

Terminal works. Container loading and unloading from the ship’s board to container terminal (handling operations)

WRS (War Risk Surcharge)

War Risk Surcharge. Risk surcharge for possible military actions in the areas of high military activities. It applies, for example, to some ports of Africa, Israel

WSC (Winter surcharge)

Winter surcharge. It compensates the ice-breaker operations and anti-ice activities