{"id":13086,"date":"2025-09-17T16:41:27","date_gmt":"2025-09-17T09:41:27","guid":{"rendered":"https:\/\/smeshipping.com\/?p=13086"},"modified":"2025-09-26T17:05:40","modified_gmt":"2025-09-26T10:05:40","slug":"freight-cost-and-its-importance","status":"publish","type":"post","link":"https:\/\/smeshipping.com\/en\/freight-cost-and-its-importance\/","title":{"rendered":"Freight Charge"},"content":{"rendered":"
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The purpose of this article is to help you. I understand all the costs.<\/strong> This relates to shipping, not just freight, so you can be aware of... <\/p>\n\n\n\n

    \n
  1. Budget assessment
    <\/li>\n\n\n\n
  2. Selecting the appropriate LCL\/FCL and destination services.
    <\/li>\n\n\n\n
  3. Reduce the risk of hidden costs.<\/li>\n<\/ol>\n\n\n\n

    I hope this article has helped you plan your meetings with your transportation team more easily and make more confident decisions.<\/p>\n\n\n\n

    1) What is freight?<\/strong><\/h2>\n\n\n\n

    Freight or shipping charges.<\/strong> That is the sea freight cost from the port of origin.From the Port of Loading to the Port of Discharge. <\/strong>This freight fee will...Not included.<\/strong> Operating costs at both ports, LCL (Less Than Container Load) consolidation\/distribution fees, documentation fees, customs clearance fees, ground transportation (trucking\/delivery), insurance, taxes and duties, and other special control fees. Breaking down these costs into three parts will give you a clearer picture and make managing your expenses easier.  (A) Origin Charges<\/strong> + (B) Freight <\/strong>+ (C) Destination & Delivery<\/strong>

    <\/strong><\/p>\n\n\n\n

    2) What are the associated costs for shipping goods by sea?<\/strong><\/h2>\n\n\n\n

    Cost structure that goes beyond just freight charges. <\/p>\n\n\n\n

    From your home \u2192 to the recipient's home.<\/p>\n\n\n\n

    A) Origin Charges: Charges on the originating side.<\/strong><\/h3>\n\n\n\n

    Pre-shipment expenses such as:<\/p>\n\n\n\n

      \n
    • THC (Terminal Handling)<\/strong> Operating costs at the originating port.
      <\/li>\n\n\n\n
    • CFS\/Consolidation (for LCL)<\/strong> Warehouse consolidation fee
      <\/li>\n\n\n\n
    • Documentation \/ Handling Fee<\/strong> Document and transportation handling fees.
      <\/li>\n\n\n\n
    • Pick-up\/Drayage<\/strong> This is the cost of hiring a truck to pick up the goods from our address and transport them to the shipping line's location\/central warehouse for export preparation.
      <\/li>\n\n\n\n
    • Packaging\/Crating<\/strong> Packaging cost (box\/wooden crate\/cushion)
      <\/li>\n\n\n\n
    • Insurance <\/strong>Recommended for fragile\/high-value items.<\/li>\n<\/ul>\n\n\n\n

      B) Freight (Shipping charges)<\/strong><\/h3>\n\n\n\n
        \n
      • LCL (Less than Container Load) shipping.<\/strong> Think along. CBM<\/strong> or W\/M (Weight or Measurement\u2014calculated based on the higher value or the size of the package)<\/strong> And there are often... Minimum 1 CBM<\/strong>
        <\/strong><\/li>\n\n\n\n
      • FCL (Full Container Load) shipping.<\/strong> The shipping cost is calculated as a "full container load" (20'GP ~33 CBM \/ 40'HC ~67 CBM), regardless of whether the container is full or not.
        <\/li>\n\n\n\n
      • Surcharges that you may encounter are often collectively referred to as...<\/strong> Ocean Freight Surcharges<\/strong> And it is often included as "All-in ocean freight," which includes:
        BAF<\/strong> (Bunker\/Oil), CAF<\/strong> (Currency exchange rate), PSS<\/strong> (Peak Season), GRI<\/strong> (General rate increase), Congestion<\/strong> (Crowded area), War Risk\/Insurance<\/strong> (Risky route), Low Sulphur\/ETS<\/strong> (Environmental regulations in some regions)
        <\/li>\n<\/ul>\n\n\n\n

        C) Destination & Delivery<\/strong><\/h3>\n\n\n\n
          \n
        • DTHC\/CFS Deconsolidation (LCL)<\/strong> Port\/warehouse operating costs at the destination vary depending on the shipping line.
          <\/li>\n\n\n\n
        • Customs Brokerage\/Entry<\/strong> Customs clearance fees
          <\/li>\n\n\n\n
        • Inspection\/Exam<\/strong> Random or product-specific inspection fees (depending on the laws of the destination country).
          <\/li>\n\n\n\n
        • Storage\/Demurrage\/Detention<\/strong> Storage fees\/Overdue container return\/Exceeding free time.\u00a0<\/li>\n<\/ul>\n\n\n\n

          An example to illustrate the point.<\/strong><\/h2>\n\n\n\n

          1. The customer is busy clearing documents, which is causing... The item was left in that position for 3 days.<\/strong> Exceeding free time \u2192 Got in trouble. Storage<\/strong><\/p>\n\n\n\n

          2. The customer has not yet requested the forklift to pick up the container from the port. Parking containers exceeding free time.<\/strong> \u2192 Got hit. Demurrage<\/strong><\/p>\n\n\n\n

          Three customers have already taken the containers to the warehouse to load their goods, but... Return the locker late.<\/strong> Exceeding free time \u2192 Got in trouble. Detention<\/strong>
          <\/p>\n\n\n\n

            \n
          • Delivery (Trucking)<\/strong> Delivered to the destination as Curbside<\/strong> or White-glove<\/strong>

            Delivery to your doorstep (Curbside):<\/strong> The delivery truck arrived, dropped him off in front of the house, and that was it.
            Premium service (White-glove):<\/strong> The moving team helped carry items into the house, arranged them in the rooms, unpacked, and cleaned up any trash.<\/li>\n<\/ul>\n\n\n\n
              \n
            • Duties\/Taxes\/Import Charges<\/strong> Taxes\/duties\/fees according to the commodity classification and laws of the destination country.\u00a0<\/li>\n<\/ul>\n\n\n\n

              summarize:<\/strong> Customers often misunderstand that "Freight = Total shipping cost," but in reality, "Freight" is just one part of the cost. Part 2<\/strong> For illustrative purposes only.<\/p>\n\n\n\n

              3) LCL vs FCL: How to choose wisely and minimize risk.<\/strong><\/h2>\n\n\n\n
                \n
              • LCL<\/strong> Suitable when CBM is low, payment is based on actual area, but there are many contact points (consolidation\/distribution of goods).
                <\/li>\n\n\n\n
              • FCL<\/strong> Suitable when CBM is high (based on experience, ~15\u201320 CBM in some seasons becomes worthwhile), offering better control over risk\/time\/damage.
                <\/li>\n\n\n\n
              • Always check.<\/strong>Request a quotation for comparison. LCL vs FCL<\/strong> When the volume begins to enter the worthwhile zone.
                <\/li>\n<\/ul>\n\n\n\n

                4) Documents and regulations<\/strong><\/h2>\n\n\n\n

                Basic documents required at almost every destination:<\/p>\n\n\n\n

                  \n
                • Commercial Invoice<\/strong> (If there is a value\/commercial or customs assessment), Packing List<\/strong> (Specify item(s)\/quantity), Bill of Lading<\/strong>
                  <\/li>\n\n\n\n
                • Customs information<\/strong> Destination country (HS Code\/Product Description\/Origin\/Purpose of Use)
                  <\/li>\n\n\n\n
                • Safety Regulations\/Advance Notice<\/strong>Many countries have Advance Cargo Information (ADI) systems for sea shipments, such as: AMS\/ISF<\/strong> (USA), ENS<\/strong> (European Union), AFR<\/strong> (Japan), ACI<\/strong> (In many countries) the concept is "providing information before the ship docks" in order to screen for risks in advance. It needs to be agreed upon from the start who will submit the application and when.<\/strong>
                  <\/strong><\/li>\n\n\n\n
                • Specific license<\/strong> (If applicable): Plants\/food\/chemicals\/batteries\/hazardous materials, etc. Regulations differ from country to country \u2192 Sales representatives should ask, "Are there any special items?" to plan ahead.
                  <\/li>\n<\/ul>\n\n\n\n

                  The management of these documents will be included in the Documentation\/Handling Fee.<\/strong> Or other service fees. <\/p>\n\n\n\n

                  5) Incoterms\u00ae and scope of responsibility. <\/strong><\/h2>\n\n\n\n

                  Incoterms\u00ae (by ICC)<\/strong> This refers to the globally accepted definition of the scope of obligations between seller and buyer, or sender and receiver, such as:<\/p>\n\n\n\n

                    \n
                  • EXW\/FOB<\/strong> The buyer or recipient of the goods bears a greater burden (including sea\/destination costs).
                    <\/li>\n\n\n\n
                  • CIF\/CFR<\/strong> The seller includes some of the seafood costs.
                    <\/li>\n\n\n\n
                  • DAP\/DDP<\/strong> The seller\/shipper bears a higher burden at the destination (including door-to-door delivery\/including taxes \u2013 depending on the agreement).
                    <\/li>\n<\/ul>\n\n\n\n

                    In the context of the transportation\/moving service business, it is recommended that... Clearly define the scope of services.<\/strong> Specify what the quotation covers (e.g., "Door to Port," "Port to Door," or "Door to Door," etc.) so that you... Compare the prices of each service equally. <\/strong><\/p>\n\n\n\n

                    6) How to request a freight quote without making mistakes or getting out of control.<\/strong><\/h2>\n\n\n\n

                    Use this list to send to sales\/forwarders, covering all three cost components.<\/p>\n\n\n\n

                      \n
                    1. To<\/strong> City\/Country\/ZIP (if applicable) + Where to send Arrived at the pier.<\/strong> or Arrived home (Curbside\/White-glove)<\/strong>
                      <\/strong><\/li>\n\n\n\n
                    2. Product characteristics<\/strong> In short: Category (e.g., personal use\/sample\/commercial), \u201cNot for resale\u201d.
                      <\/li>\n\n\n\n
                    3. Total volume (CBM)<\/strong>, Total weight (kg)<\/strong>, Main crate size<\/strong>, Packaging method (wooden crate\/box\/pallet)
                      <\/li>\n\n\n\n
                    4. Timeline<\/strong> Available days\/fixed or flexible time slots.
                      <\/li>\n\n\n\n
                    5. Special documents\/requirements<\/strong> Expected to be required (permits\/certificates\/hazard warnings, etc.)
                      <\/li>\n\n\n\n
                    6. Advance Notice\/Customs Requirements<\/strong> Destination: Who submitted, deadline, estimated cost.
                      <\/li>\n\n\n\n
                    7. insurance<\/strong> Do you need it? (Type\/Coverage amount)
                      <\/li>\n\n\n\n
                    8. Incoterms\u00ae\/Scope of Services<\/strong> As required (Door-to-Door \/ Door-to-Port, etc.)
                      <\/li>\n\n\n\n
                    9. Request a quote for "3 separate parts".\u201c<\/strong> ready Included\/Excluded Items<\/strong> And specify. Free time \/ Conditions for Demurrage \/ Detention \/ Storage<\/strong>
                      <\/strong><\/li>\n<\/ol>\n\n\n\n

                      7) An example overview of what you will need to prepare for managing expenses.<\/strong><\/h2>\n\n\n\n

                      Hypothetical case:<\/strong> LCL 8.0 CBM Country A \u2192 Country B, door-to-door delivery (truck arrives, drops off at your doorstep, and that's it) (Curbside).<\/p>\n\n\n\n

                        \n
                      • Origin:<\/strong> THC + CFS + Doc + Pick-up (if applicable) + Insurance
                        <\/li>\n\n\n\n
                      • Freight (LCL):<\/strong> Rate: Baht per CBM \u00d7 8.0 (minimum 1 CBM) + Surcharges depending on the route.
                        <\/li>\n\n\n\n
                      • Destination:<\/strong> DTHC + Deconsolidation + Brokerage\/Entry + Advance Declaration\/Security Fee (according to Country B's regulations) + Trucking Curbside + Taxes\/Duties (if any)
                        <\/li>\n\n\n\n
                      • Risks that could escalate:<\/strong> Submitting destination information late, incomplete documents, not locking in free time, not booking a vehicle at the destination in advance, goods subject to special inspection but not prepared.
                        <\/li>\n<\/ul>\n\n\n\n

                        Checklist of questions and answers to ask before starting the shipping process.<\/h2>\n\n\n\n
                          \n
                        • Which document submission system must be used at the destination country? (AMS\/ISF, ENS, AFR, ACI, etc.)
                          <\/li>\n\n\n\n
                        • When is the final day for all preparations to be completed before the ship departs? (How many hours or days before departure\/arrival?)
                          <\/li>\n\n\n\n
                        • Who submits the customs clearance request? (Agent\/broker\/forwarder)
                          <\/li>\n\n\n\n
                        • Are all the necessary information complete? (Sender's and recipient's information, product description, number of boxes, weight, packaging location, port)
                          <\/li>\n<\/ul>\n\n\n\n

                          We will view costs in three parts: Origin, Freight, and Destination\/Delivery, to avoid the misconception that freight is the entire cost. Then, we will lock down key steps (documents, scheduling transportation, free time) to prevent budget overruns, and finally, provide a budget summary and service options at the destination to help the sender make confident decisions.<\/p>\n\n\n\n

                          Need a quote? Contact SME Shipping at 02-105-7777 or Line @Shipping.

                          <\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>","protected":false},"excerpt":{"rendered":"

                          The purpose of this article is to help you understand all the costs associated with sea shipping, not just freight. I hope this article will make it easier for you to plan discussions with your shipping team and make more confident decisions. 1) What is Freight? Freight, or sea freight charges, are the costs of transporting goods by sea from the port of loading to the port of discharge. This freight charge does not include handling fees at both ports, less-than-container\/less-than-load (LCL) charges, documentation fees, customs fees, trucking\/delivery charges, insurance, taxes, duties, and other special control fees. A general overview of the costs can be broken down into three parts to help you visualize and manage your expenses more easily: (A) Origin Charges + (B) Freight + (C) Destination\u2026<\/p>","protected":false},"author":19,"featured_media":13098,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[235,234],"class_list":["post-13086","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","tag-freight-charge","tag-234"],"_links":{"self":[{"href":"https:\/\/smeshipping.com\/en\/wp-json\/wp\/v2\/posts\/13086","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/smeshipping.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/smeshipping.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/smeshipping.com\/en\/wp-json\/wp\/v2\/users\/19"}],"replies":[{"embeddable":true,"href":"https:\/\/smeshipping.com\/en\/wp-json\/wp\/v2\/comments?post=13086"}],"version-history":[{"count":4,"href":"https:\/\/smeshipping.com\/en\/wp-json\/wp\/v2\/posts\/13086\/revisions"}],"predecessor-version":[{"id":13090,"href":"https:\/\/smeshipping.com\/en\/wp-json\/wp\/v2\/posts\/13086\/revisions\/13090"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/smeshipping.com\/en\/wp-json\/wp\/v2\/media\/13098"}],"wp:attachment":[{"href":"https:\/\/smeshipping.com\/en\/wp-json\/wp\/v2\/media?parent=13086"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/smeshipping.com\/en\/wp-json\/wp\/v2\/categories?post=13086"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/smeshipping.com\/en\/wp-json\/wp\/v2\/tags?post=13086"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}