Shipping a product requires a great deal of effort. Those unfamiliar with the industry and attempting to get an understanding of it struggle to keep up with the high learning curve. Terms, conditions, probable delays, and, most importantly, abbreviations are an integral aspect of the container shipping sector and its pricing.
Factor for Bunker Adjustment
This is also known as the FAF, or Fuel Adjustment Factor. This is a compensation charge for the cost of fuel for the shipping vessel, which might vary and be altered at the last minute without previous notification.
Factor of Currency Adjustment
This is a fee assessed when the cargo is payable in a foreign currency that is exposed to significant exchange rate volatility. It compensates for any exchange rate risks that may occur.
Surcharge for Equipment Imbalance
Shipping companies may levy this temporary surcharge to recoup the cost of transporting containers between nations with a trade imbalance.
Increase in General Rates
A General Rate Increase is a shipping line’s modification (often an increase) of freight prices across shipping routes.
The table for each category includes a list of normal fees. A shipper or consignee will pay any extra costs based on the method of transit, such as Door to Door, Port to Port, or any connected services.
Following the regular fees, each category has a list of some of the typical costs. Some of you may be familiar with some of these charges by other names owing to their varied acronyms and descriptions. Numerous these fees might be classified further.