How to Read an Ocean Freight Quote: Every Charge You Actually Pay

Every line item in an ocean freight quote explained: base rate, THC, BAF, ISPS, demurrage vs detention, and a checklist to compare quotes fairly.

Why two quotes for the same lane differ by 40%

Because they rarely cover the same scope. An ocean freight rate is a base ocean charge plus a stack of surcharges, and each carrier or forwarder decides how many of them to fold into the headline number. Compare scopes before you compare prices.

The base rate

Quoted per container (FCL: 20', 40', 40'HC) or per revenue ton for LCL — whichever is greater between one cubic metre and one metric tonne. If your cargo is dense, you pay by weight; if it is bulky, you pay by volume.

Origin charges

Ocean surcharges

Destination charges

Destination THC, delivery order fees, import clearance, duty and VAT (paid by whoever the Incoterm names), inland delivery, and possible inspection or scanning fees.

Demurrage vs detention — the two costs that surprise people

Free time is negotiable and is one of the most valuable things to ask for — often worth more than a few dollars off the base rate. Get the number of free days in writing for both origin and destination.

A practical comparison checklist

  1. Same Incoterm on both quotes? (A CIF quote and an FOB quote are not comparable.)
  2. Same equipment and same sailing week?
  3. Are origin THC and destination THC included or excluded?
  4. How many free days at destination?
  5. Is the rate fixed, and until what date?
  6. Which charges are "at cost" and could change?

Where Prebro fits

On Prebro, freight quotes for a lane arrive against the same request, with the Incoterm, equipment and validity date stated on each one, so the comparison is like-for-like rather than a pile of PDFs.

*References: IMO SOLAS VGM requirement; UNCTAD Review of Maritime Transport; carrier tariff pages for surcharge definitions.*

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