Reading a freight quote
A freight quote is a list of charges, not one number. Two quotes can look far apart because they include different things. This guide explains the usual lines, what an "all-in" quote can and cannot cover, and what makes a quote change. No prices here, only how to read them.
Typical line items
| Line | What it covers |
|---|---|
| Freight | The main transport charge for the sea, air or land leg. |
| Terminal handling charges (THC) | Charges at the port or terminal for moving the container on and off the ship. Charged at origin and at destination. |
| Documentation fee | Cost of preparing and issuing transport documents, such as the bill of lading. |
| Fuel or bunker surcharge | An adjustment for fuel cost, set by the carrier and reviewed regularly. |
| Other carrier surcharges | Seasonal, currency or security charges that carriers add at times. |
| Customs clearance | A broker's fee to prepare and lodge a customs declaration. Duties and taxes are separate. |
| Local delivery or collection | Trucking between the port, airport or CFS and your address. |
| Insurance | Cargo cover arranged with an insurer, if you want it. Ayer is not an insurer. |
| Demurrage and detention | Charges when a container stays too long at the terminal (demurrage) or outside it (detention). |
| Storage | Charges for cargo held in a port, airport or warehouse beyond free time. |
Names vary by carrier and trade lane. If a line is not clear, ask what it covers.
What "all-in" can and cannot mean
"All-in" should mean the quote bundles the lines in scope for that route, so you do not meet surprise add-ons. It does not usually include:
- Import duties and taxes in the destination country
- Demurrage, detention or storage if free time runs out
- Inspection, examination or re-handling charges
- Extra waiting time for trucks, or a failed delivery
- Services not listed, such as insurance, or special equipment
Always read what the quote says it excludes. Ask for a quote that states the Incoterm and the points where each party's responsibility starts and ends. See Incoterms 2020.
Validity
A quote is only good for a stated period and for the cargo described. After that date rates, surcharges and space can change. It is also usually subject to space and equipment being available when you book. Ask for the validity date and check it against your cargo ready date.
What changes a quote
- The real weight or volume differs from what you declared.
- The cargo type changes, for example it turns out to be dangerous or needs a set temperature.
- The route, port, date or container type changes.
- The Incoterm or who pays at each end is different from what was assumed.
- A carrier surcharge changes between quote and shipping.
- Time runs beyond free time at the terminal.
How to compare two quotes
1. Put them on the same basis: same cargo, same route, same Incoterm.
2. List what each includes at origin, the main leg and destination.
3. Note what each excludes.
4. Check the validity date and any conditions.
5. Ask what is charged if something goes wrong, such as a missed cut-off.
Questions
Why does my invoice differ from the quote?
Usually because the cargo or the dates changed, a surcharge was updated, or a charge was listed as excluded. Ask for the lines side by side.
Who pays demurrage and detention?
It depends on the contract and the Incoterm, and the shipping line bills the party named in the booking. Plan the pickup and return before the box moves. See Container haulage.
What do you need from me to give a quote?
Cargo description, weight, volume, origin, destination, ready date and Incoterm. Tell us early about dangerous goods or temperature needs.