What Do You Need to Know to Understand the Ocean Freight Quotation?

Freight Quotation
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If you have a shipping business, you should have heard about freight quotations. The freight quotation is known as the document that showcases different types of charges involved in the transportation process of the cargo from point A to point B.

Depending on the rules and the sales contract, the buyer or seller would approach the freight forwarding services for their freight quotation. Apart from the LSP to the carrier, the carrier to the customer can also send the freight quotation.

Many clients have lost a significant amount of money due to non-transparent and unclear freight quotations or because they failed to understand the different aspects of the freight quotation properly. If you want to know about the freight quotation, you’re in the right place. In this article, we will discuss some crucial details about the ocean freight quotation.


Freight Quotation: Carrier to Customer 

The carrier can quote their clients or customers great freight quotes, either as a part of the normal freight rate, a freight tender, or a sport rate.

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Even though many business owners think that freight quotations can be applied only for ocean freight transportation, various charges are included in the freight quote. This is why you need to pay close attention to the freight quotation.

Ocean Freight Charges 

The rate of ocean freight will be charged by the shipping company as per the movement of the containers from one port to another. The rate of ocean freight is primarily dependent on the type of the container and size of the container. Apart from that, here are the other charges that you need to pay while choosing ocean freight services to transport your goods from one place to another.

  • BAF or Bunker Adjustment Factor
  • ISPS
  • Special container
  • IM02020 Surcharge
  • CAF
  • Risk management

Ancillary Charges 

Depending on the arrangement of the freight forwarding company as well as the service types of container such as Door to Door, FCL, Pier to Pier, Groupage, etc, or the movement of the container, the ocean  can also contain other types of charges such as:

  • Chassis usage
  • Pre-carriage
  • On-carriage
  • Deconsol or consol

The quotation provided by the shipping company for ocean freight services will also depend on the specific type of haulage in the on-carriage and pre-carriage system. The charges you pay might impact the cash flow of your business. As per Easybooksapp, cash flow is important for a small business.

Mandatory Charges 

This is one of the most important parts of the ocean freight quotations you need to know. Apart from the ancillary charges, sea freight charges, and standard local landslide charges, you also need to pay close attention to other types of charges for the seas freight:

  • THC or Terminal Handling Charges
  • Local service fees
  • Documentation fees
  • Administration fees
  • Bill of Lading fees

When the freight forwarding company provides you with a quotation, make sure you understand the details regarding each charge such as what the charges cover and why you need to pay them. This will help you understand the freight quotations better and prevent mistakes from happening. But make sure you don’t forget to bargain.


This is everything you need to know to understand the ocean freight quotation. If you have any other queries, make sure you let us know.


About jordonsmith smith

I am david warner games journalist with 15 years' experience, beginning my career on Edge magazine before working for a wide range of outlets, including Ars Technica, Eurogamer, GamesRadar Gamespot, the Guardian, IGN, the New Statesman, Polygon, and Vice. I was the editor of Kotaku UK, the UK arm of Kotaku, for three years before joining PC Gamer.

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