Logistics & transporten
Ocean freight
The cost of transporting goods by sea, calculated based on volume, weight, type of goods, and trade route.
Definition
Ocean freight refers to the price of transporting goods by sea, paid by the shipper (or their agent) to the shipping line (carrier). It typically represents 60-80% of the total international transport cost for intercontinental trade.
Cost components
Ocean freight comprises several elements:
- Base rate: main tariff calculated per container (FCL) or per W/M (LCL)
- BAF (Bunker Adjustment Factor): fuel surcharge
- CAF (Currency Adjustment Factor): exchange adjustment
- THC (Terminal Handling Charges): terminal handling fees
- Seasonal surcharges (Peak Season Surcharge — PSS)
- ISPS (International Ship and Port Facility Security): security surcharge
- ECA/LSS: environmental surcharge (emission control areas)
Pricing modes
- Spot rate: one-off price on the spot market (highly volatile)
- Annual contract (service contract): negotiated rates for guaranteed volumes
- FAK rate (Freight All Kinds): single rate regardless of cargo type
- Commodity rate: specific rate by commodity type
Reference indices
Several indices track freight rate trends:
- SCFI (Shanghai Containerized Freight Index): spot rates ex-Shanghai
- WCI (Drewry World Container Index): 8 main routes
- Baltic Exchange: dry bulk freight (Baltic Dry Index) and tankers