Ocean freight & charges

Schenker Vietnam Co., Ltd

Ocean Freight Department
Ho Chi Minh city, Mar 2020
Agenda

Topic
 Group charges & Tax reason

 Schenker’s services

 Charges allocation

 Net con fee

 Read & analyze rate card/ SI/ Quotation

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Group charges & Tax

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Group charges

Ocean freight
Local charges
& surcharges

PUP/DEL
Other charges
charges

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Ocean freight

OCF
Ocean freight
Basic ocean freight (BAS - Sealand)
VAT = 0%
Note: Ocean freight & freight surcharge are mostly same term (Prepaid or Collect)
**If ocean freight is paid by cash VAT = 10%
**If the ocean freight payer is not shipper/consignee/or the party signing carriage
contract with Schenker, pls double check tax % with Finance

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Ocean freight & surcharges/ Fuel

BAF/FAF EBS

 Bunker Adjustment Factor or Fuel  Emergency Bunker Surcharge

Adjustment Factor  The charge associated with vessel extraordinary fuel cost
 An adjustment in shipping charges to offset
price fluctuations in the cost of bunker fuel LSFS/LSS

 Low Sulphur Fuel Surcharge(EU)/ Low sulfur surcharge (CN)

CAF  Under EU Convention, vessels operating in the Baltic and North
Sea have to use fuel oil with a sulphur content not exceeding
 Currency Adjustment Factor 1.5%. (ports in Sweden, Poland, Finland, Lithuania, Russia )
 The percentage by which the rate is MRF
increased in response to fluctuating
currency exchange rates  OMFR (Maritime Fuel Regulations (IMO2020))
 Called by different name: BAF/ EFF/ NBF/ LSS
GRI
Inland Fuel Surcharge
 General Rate Increase - rate increase
imposed by the carrier  Charge associated with arranging intermodal transportation,
 Also can be called RR – rate restoration related to fuel cost
 It is commonly used in US when inland delivery has to be
arranged
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Ocean freight & surcharges/ Seasonality

Low Water Surcharge

PSS  Applies during the time when low water level

on Rhine river is limiting barge transportation
 Peak Season Surcharge carriage capacity
 Seasonal surcharge, applicable in various  Only charged on full (loaded) containers
time of the year, depends on the traffic
 The amount depends on the water level and
destination or pick up inland terminal location
Congestion Surcharge (COG)

 Applicable for shipments to destination Winter Surcharge

where congestion is suffered
 Seasonal surcharge applicable on all cargo via
 Might be called on temporary basis and
port of St. Petersburg in Russia (from
cancelled when situation improves
December till end of March)

DB Schenker | Regional Ocean Freight | July, 2018 7

Ocean freight & surcharges/ Others

WRS Others

 Over weight surcharge

 War Risk Surcharge
 DG/IMO surcharge
 Applicable for shipments to areas of potential military conflict or
terrorist threat.  Grade A/ Food grade container
 Insurance underwriters impose higher premiums on vessels sailing
surcharge
to/from such areas which result in carriers implementation of the war  GOH surcharge
risk surcharge.  ECRS: Emergency Cost Recovery
Charge
YAS
 EIS/POS
 Yen Appreciation Surcharge
 Exchange rate adjustment (JPY to USD)
 Applicable for shipments to/from Japan All in rate

Suez Canal Transit Charge (SCS)  Freight rate including surcharges

and other charges
 Implemented from April 2008 due to increase in the cost of transiting
Suez Canal announced by the Suez Canal Authority  Quotation must specify what is
covered in all in rate in order to
PCS avoid disputes

 The charge associated with cost of the vessel’s transit the Panama
Canal

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Ocean Freight / service contract type

FAK Commodity rates

 Freight All Kinds  Rate agreed with the carrier applicable to specific
 Rate applicable to various commodities commodity or group of commodities
 The freight is charged per container,  Cannot be used if the commodity is not matching
irrespective of nature of the goods. agreed ones
 Examples: textiles, electronics, furniture, timber,
stone products
Named Account

 Special agreement with shipping line

providing rate applicable to all shipments Desired service contract format:
shipped under specific customer’s name. - [S/C no.] _ [FAK or NAC (If NAC, pls mention the clear
 Shipping line will provide filing code or NAC)]_ [Filling party: RCM/ RHO/ VN local/ SCHE
reference no. which should be used when partner local]
booking is made and inserted in the
waybill for the easy settlement.
For some VN local deal which is no s/c nos, pls follow below
format:
- [carrier name] _ [carrier sale PIC] _ [FAK or NAC (If NAC,
pls mention the clear NAC)]_ [Filling party: VN local]

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Local charges/ BASIC

EXPORT
FCL LCL Tax
THC (Terminal handling charge) per cont THC (Terminal handling charge) per w/m 10%
Seal per cont CFS (Container Freight Station) per w/m 10%
VGM (Verified Gross Mass) per cont VGM (Verified Gross Mass) per BL 10%
EBS - Emergency Bunker Surcharge per cont EBS per w/m 10%
B/L fee per BL B/L fee per BL 10%
Telex Release (if any) per BL Telex Release (if any) per BL 10%
AMS (USA) - Automated Manifest System per BL AMS (USA) per BL 0%
ACI (Canada) - Advance Commercial Information per BL ACI (Canada) per BL 0%
ENS (EU) - Entry Summarry Declaration per BL ENS (EU) per BL 0%
MTF / AFR (Japan) - Japan Advance Filing Rules per BL MTF / AFR (Japan) per BL 0%
CCAM/ AFS (China) - China Customs Advance Manifest per BL CCAM/ AFS (China) per BL 0%
DTF (Data transmission fee) per shipment DTF (Data transmission fee) per shipment 10%

Schenker Handling fee per shipment Schenker Handling fee per shipment 10%
DG handling fee per shipment DG handling fee per shipment 10%
DAD/ UIH Agency fee per cont DAD/ UIH Agency fee per BL 10%

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Local charges/ BASIC

IMPORT
FCL LCL Tax
THC (Terminal handling charge) per cont THC (Terminal handling charge) per w/m 10%

Container Cleaning fee per cont CFS (Container Freight Station) per w/m 10%

CIC (Container imbalance charge) per cont CIC per w/m 10%

Equipment Maintenance fee (EMF) per TEU N/A

D/O (Delivery fee) per BL D/O (Delivery fee) per BL 10%

E-Manifest fee (EMNF) per BL E-Manifest fee (EMNF) per BL 10%

DTF (Data transmission fee) per shipment DTF (Data transmission fee) per shipment 10%

Schenker Handling fee per shipment Schenker Handling fee per shipment 10%

DG handling fee per shipment DG handling fee per shipment 10%

DAD/ UIH Agency fee per cont DAD/ UIH Agency fee per BL 10%

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PUP/DEL charges/ BASIC

FCL LCL Tax

Trucking (pre-carriage/ on-carriage/ haulage) per cont Trucking per truck 10%
10%
LOLO (Lift on/off) per cont N/A

Customs Declaration/ Clearance per cds/cont Customs Declaration/ Clearance per set 10%

Customs liquidation per set Customs liquidation per set 10%

Inspection (if any) per shipment Inspection (if any) per shipment

Gate fee (Hai Phong) per cont N/A 10%

Toll fee (if any) (Hai Phong) per cont Toll fee (if any) (Hai Phong) per truck 10%

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Other charges

Amendment fee B/L, ACR, manifest…

Physical handling Courier, Paper/Printing invoice, CFS sorting…

Carrier/ port/ supplier charge DEM/ DET/ Storage, extra LOLO, truck waiting, plug-in...

Certificate/ license Shipping cert, C/O, Phytosanitary, Sanitary, Fumigation…

Others Forklift, stuffing/unstuffing, lashing…

EDI, Wharfage, Terminal Security Charge, ADM fee

Oversea local charges (Philippines), Booking agent fee (China), Chassis rental
fee…

This is pass through charge that must be clarified/

Duty/tax
indicated clearly on quotation/ instruction

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Schenker’s services

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Schenker services

Door to Port of Loading

Door to Port of Discharge

Door to Destination Inland CY

Door to Door

Origin CY/CFS to Port of Discharge

Origin CY/CFS to Door

Port to Port
CFS to CFS
CY to CY

Port of Loading to Inland CY/CFS

Port of Loading to Door
Port of Discharge to Door

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Schenker services

Door to Door
Door to Destination CY
Door to Port of Discharge
CY/CFS to CY/CFS
Port/CFS to Port/CFS
Door to Port of Loading Port of Discharge to Door
Origin CY to Port of Discharge
Origin CY to Door

Port of Loading to Inland CY

Port of Loading to Door

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Charges allocation

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Identification of charges

Port/CFS to Port/CFS

CY/CFS to CY/CFS

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Identification of charges

Origin CY to Port of Discharge

Port of Loading to Destination Inland CY

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Identification of charges

Port of Loading to Door

Door to Port of Discharge

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Identification of charges

Origin CY to Door
Door to Destination CY

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Identification of charges

Door to Door

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Identification of charges

Door to Port of Loading Port of Discharge to Door

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Identification of charges/ Summary

Ocean Origin Destination Other

freight charges
Port to Port Yes Local charges Local charges Yes if any
CFS to CFS Yes (Pre-carriage), Local charges Local charges, (On-carriage) Yes if any
CY to CY Yes (Pre-carriage), Local charges Local charges, (On-carriage) Yes if any
Origin CY to Port of Discharge Yes (Pre-carriage), Local charges Local charges Yes if any
Port of Loading to Destination Inland CY Yes Local charges Local charges, (On-carriage) Yes if any
Port of Loading to Door Yes Local charges Local charges, (On-carriage), DEL Yes if any
charges

Door to Port of Discharge Yes PUP charges, (Pre-carriage), Local Local charges Yes if any
charges

Origin CY to Door Yes (Pre-carriage), Local charges Local charges, (On-carriage), DEL Yes if any
charges

Door to Destination Inland CY Yes PUP charges, (Pre-carriage), Local Local charges, (On-carriage) Yes if any
charges

Door to Door Yes PUP charges, (Pre-carriage), Local Local charges, (On-carriage), DEL Yes if any
charges charges

Door to Port of Loading No PUP charges No Yes if any

Port of Discharge to Door No No DEL charges Yes if any

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Ocean Charges allocation

Incoterms 2020 Shipper Consignee

EXW None Door to Door charges (incl OCF)

FCA (port) PUP charges Origin local charges, OCF, Destination local charges,
DEL charges
FCA (factory) Export customs PUP charges (excl export customs), Origin local
charges, OCF, Destination local charges, DEL charges
FOB PUP charges, Origin local charges OCF, Destination local charges, DEL charges

FAS PUP charges, Origin local charges OCF, Destination local charges, DEL charges

CFR PUP charges, Origin local charges, OCF Destination local charges, DEL charges

CIF PUP charges, Origin local charges, OCF, Insurance Destination local charges, DEL charges

CPT PUP charges, Origin local charges, OCF Destination local charges, DEL charges

CIP PUP charges, Origin local charges, OCF, Insurance Destination local charges, DEL charges

DAP PUP charges, Origin local charges, OCF, Destination Import customs
local charges, DEL charges (excl import customs)
DPU PUP charges, Origin local charges, OCF, Destination Import customs
local charges, DEL charges (excl import customs),
Destination unloading charges
DDP Door to Door charges (incl OCF) None
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Ocean Charges allocation/ Special note

Criteria base
Ocean freight Ocean freight + surcharges Freight term: Collect or Prepaid
Amendment: B/L, ACR, manifest…
Other local charges Local charges & Incoterms
DEM/ DET/ Storage, CFS sorting, plug-in

Physical handling Courier, Paper/Printing invoice… Requester

Carrier/ port/ supplier

Additional LOLO, truck detention… PUP/DEL charges & Incoterms
charge

Shipping cert, C/O, Phytosanitary, Sanitary,

Certificate/ license Requester
Fumigation…

Others Forklift, stuffing/unstuffing, lashing… PUP/DEL charges & Incoterms

EDI, Wharfage, Terminal Security Charge,

Oversea local charges ADM fee (Philippines), Booking agent fee Local charges & Incoterms
(China), Chassis rental fee…

This is pass through charge that must be

Duty/tax clarified/ indicated clearly on quotation/ PUP/DEL charges & Incoterms
instruction
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Exercises

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Exercises

Question 1:
Which ones are freight surcharges & which ones are local charges?
BAF, THC, PCS, WRS, Seal, EDI, SCS, DTF, GRI, GOH, Wharfage, Grade A container
charge,

Question 2:
What is MRF?

Question 3:
Which group charges may occur for below shipment? Who will be payer of each group
charges?
Incoterms: FCA Binh Duong
Schenker’s service: Door to CY Destination
Customer’s SOP: Principal will be in charge of OCF

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Exercises

Question 4:
Which charges will pay to carrier for this shipment?
Incoterms: FOB
MBL: Trade instruct freight term PP
HBL: freight term CC
VOL: 1x20’RF
Receipt Delivery Effective Date Expiry Date Charge Rate Basis 20REEF : 40HREF :
Haiphong ,VN Shanghai ,CN 01-Feb-2020 29-Feb-2020 BAS PER_CONTAINER 575 USD 740 USD
Haiphong ,VN Shanghai ,CN 01-Feb-2020 29-Feb-2020 DDF PER_DOC 450 CNY 450 CNY
Haiphong ,VN Shanghai ,CN 01-Feb-2020 29-Feb-2020 DHC PER_CONTAINER 930 CNY 1360 CNY
Haiphong ,VN Shanghai ,CN 01-Feb-2020 29-Feb-2020 ODF PER_DOC 850000 VND 850000 VND
Haiphong ,VN Shanghai ,CN 01-Feb-2020 29-Feb-2020 OHC PER_CONTAINER 3300000 VND 5200000 VND
Haiphong ,VN Shanghai ,CN 01-Feb-2020 29-Feb-2020 EME PER_CONTAINER 190000 VND 190000 VND
Haiphong ,VN Shanghai ,CN 01-Feb-2020 29-Feb-2020 EDD PER_DOC 700000 VND 700000 VND
Haiphong ,VN Shanghai ,CN 01-Feb-2020 29-Feb-2020 EFF PER_CONTAINER 56 USD 111 USD

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Rate card/ SI/ Quotation

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