由 caicai8478 In international trade, many companies are often attracted by initially offered “discounted” ocean or air freight rates, only to be shocked by a series of undisclosed additional fees at settlement. These “hidden costs” not only erode profits but also pose significant risks to a company’s financial budget and cost control. Identifying and avoiding these costs is a key component of lean supply chain management.
I. Main Components and Risks of Hidden Costs
Hidden costs generally refer to various surcharges that are not explicitly included in the initial quote but are inevitable or likely to occur during the shipping process and are then added at settlement. They primarily pose the following risks:
Financial Risk: Direct Profit Erosion. These fees can accumulate to significant amounts, even exceeding the base freight rate, severely compressing a company’s profit margins.
Budgetary Risk: Cost Out-of-Control and Cash Flow Pressure. The inability to accurately predict final logistics costs leads to inaccurate financial budgets and can impact cash flow due to unexpected large bills.
Partnership Risk: Trust Crisis and Disputes. Disputes between shippers and freight forwarders/carriers due to lack of transparency in fees can damage long-term relationships.
Operational Risk: A dilemma. Failure to agree to pay certain fees (such as a temporary emergency fuel surcharge) while goods are in transit can lead to cargo detention, resulting in greater losses.
Common Hidden Fee Areas:
Local Fees at the Port of Departure:
Booking Fees/Documentation Fees: Fees for processing booking and bill of lading documents.
Delivery Fees/In-Containerization Fees: Transportation and containerization fees from the factory to the warehouse.
Customs Brokerage Fees: Service fees charged by export customs brokers.
Terminal Handling Charges (THC): Fees for handling container loading, unloading, and storage at the terminal.
Electronic Release Fees: Fees for electronically releasing goods upon arrival at the port to avoid mailing the original bill of lading.
Bill of Lading Fees: Fees for issuing the original bill of lading.
Hidden Fees at the Port of Destination (Highest Risk):
Destination Terminal Handling Charge (DTHC): The port’s version of THC.
Demurrage & Detention:
Demurrage: Fees incurred after the free container storage period at the port of destination expires.
Detention: Fees incurred after the container remains in the consignee’s possession beyond the free period.
Customs Clearance Agent Fees: Fees charged by the port of destination agent for assisting with customs clearance.
Customs Inspection Fees: If goods are inspected by customs, inspection service fees, storage fees, and container removal fees will be incurred, typically borne by the shipper.
Document Change Fees: Fees for changing information such as the consignee on the bill of lading after arrival at the port of destination, often very high.
Transit Surcharges:
Bunker Surcharge (BAF/FAF): Fees charged to compensate for fuel price fluctuations.
Currency Devaluation Surcharge (CAF): Fees charged to compensate for exchange rate losses.
Peak Season Surcharge (PSS): Levied during peak shipping seasons (such as around holidays).
Congestion Surcharge (CGS): Levied due to severe congestion at the destination port.
Suez/Panama Canal Surcharge: Passed on to shippers when canal tolls increase.
II. Sources of Hidden Fees
Obvious Quotation Models: Some freight forwarders use a “low-cost” base freight rate to attract customers, but rely on subsequent surcharges for profit.
Unclear Responsibility: Shippers are unfamiliar with the procedures and regulations at the destination port and may incur unknowing fees (such as demurrage).
Missing “All-In” Prices: The initial quote is not presented as an “all-inclusive” price, but instead lists individual fees in a scattered manner.
Uncontrollable Factors: Some unexpected surcharges do exist (such as emergency congestion charges), but professional freight forwarders will provide advance warning.
III. Core Strategies for Avoiding Hidden Fees
A. Pre-Transaction: Due Diligence and Clear Agreements
Seek an “All-Inclusive Rate” quote:
Proactively request an “All-in Rate,” “Total Landed Cost,” or “Door-to-Door All-Inclusive Rate” from the freight forwarder. Explicitly request that the quote list all anticipated costs, including the port of departure, port of destination, and transit costs.
Choose a Reputable Partner:
Work with large, established, and reputable freight forwarders or logistics companies. Their quotes are typically more standardized and transparent, and they prioritize long-term relationships over one-time profits.
Master the Terms and Clarify Responsibilities:
Study In-depth the International Trade Terms (Incoterms 2020): This is the cornerstone of risk mitigation.
As the shipper (seller), if the transaction is done on EXW or FOB terms, you have little control over the port of destination costs. Be sure to understand and inform the buyer of potential costs in advance.
Try to use CIF or DAP/DDP terms. This allows you to control the entire shipping process and have your freight forwarder provide a comprehensive, all-inclusive quote, avoiding shocking customers with sky-high bills at the destination port or causing disputes.
Specify in the contract: “Except for the fees listed in this quotation, Party B (the freight forwarder) shall not charge any other fees without Party A (the shipper)’s prior written consent.”
B. During the transaction: Detailed operations and management
Written confirmation and document review:
Confirm all fees in writing, such as by email, to avoid verbal promises.
Carefully review bills of lading and other documents to ensure accuracy and avoid incurring fees due to changes.
Proactive communication and advance planning:
Prepare all customs clearance documents in advance and accurately declare the cargo name, value, and other information to reduce the risk of customs inspection.
Maintain close communication with the consignee to ensure they understand the pick-up process and free period at the destination port, and urge them to complete customs clearance and pick-up as quickly as possible to avoid incurring demurrage and container charges.
Leverage technology tools:
Use logistics platforms that provide online, visual quoting and expense management. These platforms typically modularize and standardize expenses, making the source and destination of every payment clearly visible.
C. Post-Transaction: Audit, Analysis, and Continuous Improvement
Conduct expense reconciliation audits:
At settlement, compare the final invoice with the initial written quote item by item. Question any undisclosed charges and request proof of charges.
Retain historical invoices and analyze expense structure to provide data support for future cost control and supplier selection.
Establish supplier performance management:
Make “quote transparency” and “no hidden fees” core performance indicators for evaluating freight forwarders. Consider replacing partners with repeated instances of hidden fees.
Conclusion
The key to avoiding hidden fees in international logistics lies in shifting from passive payment to active management. Companies must enhance their logistics knowledge, particularly their understanding of Incoterms. Through a combination of measures—enforcing all-inclusive pricing, selecting reliable partners, clarifying contract terms, and strengthening post-transaction audits—they can transform ambiguous costs into clear, manageable budgets. Only in this way can we maintain the bottom line of profit and achieve stable operation in the complex international logistics.