Table of Contents
- What Is Included in Freight Forwarding Quotes?
- Common Surcharges in International Shipping
- Understanding Incoterms in Freight Quotes
- What Information You Need for an Accurate Shipping Quote
- How to Compare Freight Quotes
- Cargo Insurance and Liability: What Quotes Do and Do Not Cover
- Frequently Asked Questions
Last Updated: September 15, 2026
What Is Included in Freight Forwarding Quotes?
A freight forwarding quote is an itemised estimate of the cost to move your cargo from origin to destination, covering the base freight rate plus origin charges, destination charges, and surcharges. The bottom line only makes sense once you can see what sits inside it.
Most buyers compare quotes on that bottom line alone, but two quotes for the same shipment can look identical on the headline figure while covering completely different things. One may be port-to-port, the other door-to-door; one may include customs clearance, the other may bill it later.
The Australian Border Force guidance on importing goods sets out the clearance obligations that sit behind many of those line items, which is why a quote without a clearance line is rarely the full picture.
Below, we break down each component so you can read a freight forwarding quote the way a forwarder does.
Base Rate vs All-In Rate
The base rate covers the movement of your cargo itself. On a sea freight booking it reflects the ocean leg; on air freight, the airline’s charge for the space your cargo occupies.
An all-in rate bundles the base rate with origin charges, destination charges, and named surcharges into one figure, easier to budget against, but only if the inclusions are written down.
A common mistake is treating an all-in quote as final. Ask which surcharges are capped and which are “at cost” or “as incurred”. Fuel and currency adjustments move with the market, and a quote that locks neither will move with them.
Origin Charges, Destination Charges and Everything Between
Origin charges cover everything before your cargo leaves the country of export; destination charges cover everything after it arrives. The middle is where the surprises live.
Typical origin charges include export customs clearance, export declaration, terminal handling at the origin port, and inland haulage to the wharf. Destination charges mirror these: import customs clearance, destination terminal handling, and delivery to the final address.
Between them sit the charges buyers ask about least: documentation fees, shipping manifest lodgement, and any port charges levied by the terminal operator rather than the forwarder.
Common Surcharges in International Shipping
Surcharges are variable charges added to a base rate to cover costs the carrier cannot fix in advance. They are legitimate, but they are where quotes diverge most between providers, and where acronyms hide the real cost. The glossary below explains what each does, how it is calculated, and whether it moves between quote and invoice.
|
Surcharge |
Full name |
What it covers |
How it is calculated |
Moves after quote? |
|---|---|---|---|---|
|
BAF |
Bunker Adjustment Factor |
Carrier fuel cost movement |
Percentage of base rate, reviewed periodically |
Usually yes |
|
CAF |
Currency Adjustment Factor |
Exchange rate movement |
Percentage of base rate, tied to a published index |
Usually yes |
|
THC |
Terminal Handling Charge |
Container handling at the terminal |
Fixed per container, origin and destination |
Rarely |
|
DOC |
Documentation Fee |
Bill of lading and manifest lodgement |
Fixed per shipment |
No |
|
PSS |
Peak Season Surcharge |
Capacity pressure during peak periods |
Fixed per container or per TEU |
Sometimes, at booking |
|
GRI |
General Rate Increase |
Carrier-wide rate adjustment |
Percentage or fixed amount on base rate |
Sometimes, at booking |
|
Detention |
Detention |
Late container return after pickup |
Per container, per day beyond free time |
Only if free time is exceeded |
|
Demurrage |
Demurrage |
Late container collection at the terminal |
Per container, per day beyond free time |
Only if free time is exceeded |
BAF and CAF: The Two That Move Most
The Bunker Adjustment Factor tracks the carrier’s fuel cost. It is a percentage of the base rate, reviewed monthly or quarterly depending on the trade lane. Because fuel prices move, a BAF quoted today may not be the BAF applied at booking, ask whether your forwarder fixes it or passes it through at cost.
The Currency Adjustment Factor protects the carrier against exchange rate movement when a shipment is billed in a different currency than it costs them to operate in. Tied to a published index and, like BAF, usually a percentage of the base rate, it is fixed by some forwarders and passed through by others, one gives you a number you can budget against, the other a number that will move.
THC, DOC and the Fixed Charges
Terminal Handling Charges cover the physical movement of your container on and off the vessel and around the terminal yard, levied at both origin and destination and usually fixed per container. Documentation fees cover the bill of lading and manifest lodgement, fixed per shipment. These are third-party costs, not forwarder margin, which is why they appear on almost every quote and rarely move much between providers.
PSS, GRI and the Booking-Time Charges
A Peak Season Surcharge applies when capacity tightens, typically ahead of major retail periods or when blank sailings reduce available space. A General Rate Increase is a carrier-wide adjustment across a trade lane. Both are usually announced in advance and applied at booking, so a quote issued before the announcement may not include them. Confirm the validity period in writing.
Detention and Demurrage: The Ones You Control
Detention applies when a container is returned late after pickup; demurrage when it sits at the terminal beyond its free time. Both are charged per container, per day, and both are avoidable if you plan your inland haulage and unpacking. Ask what the free time is before you book, it is rarely stated on the quote itself.
Understanding Incoterms in Freight Quotes
Incoterms define which party pays for which leg of the journey, and they decide what a quote should and should not include. Get them wrong and you will pay for the same leg twice, or not at all, most quote disputes trace back to this, not the freight rate.
The table below shows the four rules that appear most often on international bookings and what each one puts inside the seller’s quote versus the buyer’s.
|
Incoterm |
Seller pays |
Buyer pays |
What the quote should include |
|---|---|---|---|
|
EXW (Ex Works) |
Packing only |
Everything from the seller’s premises onward |
Origin haulage, export clearance, freight, destination charges |
|
FOB (Free On Board) |
Costs to the port of loading, export clearance |
Main freight, insurance, destination charges |
Ocean or air freight, destination THC, import clearance, delivery |
|
CIF (Cost, Insurance, Freight) |
Costs to destination port, main freight, basic insurance |
Import clearance, duties, inland delivery |
Import clearance, duties and taxes, last-mile delivery |
|
DDP (Delivered Duty Paid) |
Almost everything, including import duties and taxes |
Nothing until delivery |
A door-to-door figure with no post-arrival invoice |
Why the Incoterm Changes the Quote, Not Just the Price
Under EXW, the seller’s obligation ends at their loading dock, so the buyer’s quote must include origin haulage, export customs clearance, and the export declaration, items that sit on the seller’s side under FOB. A forwarder quoting EXW will include them; one quoting FOB will not, and that is correct, not an omission.
Under CIF, the seller covers the main freight and a minimum level of cargo insurance, typically the cost of the goods plus freight, not their full commercial value.
How to State Your Incoterm When Requesting a Quote
What Information You Need for an Accurate Shipping Quote
Provide the following:
How to Compare Freight Quotes
Red Flags to Watch For
Cargo Insurance and Liability: What Quotes Do and Do Not Cover
Frequently Asked Questions
What are the common hidden costs in freight forwarding quotes?
Hidden costs typically include fuel surcharges, currency adjustment factors, port charges, terminal handling charges, demurrage, detention, and documentation fees. Some quotes present a base rate only, leaving these extras to be added later. Ask for an all-in quote that lists every charge, or request a sample quote breakdown so you can see exactly what sits inside the rate and what does not.
What is the difference between an all-in freight rate and a base rate?
A base rate covers only the core transport leg, such as port-to-port sea freight. An all-in rate bundles origin charges, destination charges, terminal handling, customs clearance, and standard surcharges into one figure. All-in quotes make it easier to compare providers, but confirm which surcharges are fixed and which are passed through at cost, because fuel and currency adjustments can still move.
Do freight forwarding quotes include customs clearance fees?
Not always. Some quotes include customs clearance as a line item, others list it separately, and some exclude it entirely. Clearance fees cover lodgement of the import declaration, biosecurity assessment, and any duties or taxes payable. Always ask whether the quote covers customs clearance and whether government charges like import duties and GST are included or billed on top.
How do fuel surcharges affect my freight quote?
Fuel surcharges are a percentage added to the base freight rate that moves with fuel prices. On sea freight they change monthly or quarterly; on air freight they can change weekly. A quote showing a low base rate with a high fuel surcharge may end up costing more than a quote with a higher base rate and a lower surcharge. Compare the total, not just the headline rate.