{"id":98202,"date":"2020-12-31T17:04:09","date_gmt":"2020-12-31T11:34:09","guid":{"rendered":"https:\/\/www.vskills.in\/certification\/tutorial\/?page_id=98202"},"modified":"2024-04-12T14:25:41","modified_gmt":"2024-04-12T08:55:41","slug":"freight-surcharges-and-rebates","status":"publish","type":"page","link":"https:\/\/www.vskills.in\/certification\/tutorial\/freight-surcharges-and-rebates\/","title":{"rendered":"Freight Surcharges and Rebates"},"content":{"rendered":"\n<p>The following surcharges and rebates are generally applicable in ocean freight charges.<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Bunker Adjustment Factor (BAF):<\/strong> &#8220;Bunkers&#8221; is the generic name given to fuels and lubricants that provide energy to power ships. The cost of bunker oil keeps fluctuating continuously without any prior indication:<\/li><li><strong>Currency Adjustment Factor (CAF):<\/strong> The currency adjustment factor is a mechanism for taking into account fluctuations in exchange rates, these fluctuations occur when expenses are paid in one currency and monies earned in another by a shipping company.<\/li><\/ul>\n\n\n\n<p>The currency adjustment factor is a mechanism for taking into account these exchange rate fluctuations. It is always expressed as a percentage of the basic freight and is subject to regular review.<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>War Surcharge:<\/strong> The outbreak of war or hostilities between countries can have significant effect upon carriers servicing international trade even though they may sail under a neutral flag. Carriers sailing within the vicinity of a war zone may impose a war surcharge on freight to compensate for the higher risks involved and the higher levels of insurance premium, which they may have to pay.<\/li><\/ul>\n\n\n\n<p><strong>Example<\/strong><\/p>\n\n\n\n<p>Freight rate: Mumbai to Singapore<\/p>\n\n\n\n<p>Freight rate: US Dollar: 4000.00 per 20-M container+ WAR 6%<\/p>\n\n\n\n<p>US Dollar 4000.00 X 5% = US Dollar 200.00<\/p>\n\n\n\n<p>Adding the two amounts together Freight rate: US Dollar 4200.00<\/p>\n\n\n\n<p>All of the above surcharges may be applied to a single freight rate.<\/p>\n\n\n\n<p><strong>Example<\/strong><\/p>\n\n\n\n<p>Freight rate: Mumbai to Singapore<\/p>\n\n\n\n<p>Freight rate: US Dollar: 4000.00 per 20-M container+ BAF 5%+ CAF 6%+ WAR&nbsp; 6%<\/p>\n\n\n\n<p>Total amount of surcharge 16.0%<\/p>\n\n\n\n<p>US Dollar 4000.00 X 16% = US Dollar 640.00<\/p>\n\n\n\n<p>Adding the two amounts together Freight rate: US Dollar 4640.00<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><em><strong>Port Congestion Surcharge:<\/strong><\/em> Congestion in a port for a period of time can involve considerable idle time for vessels serving that port resulting in loss to the ship owner. Shipping lines therefore have the right to impose a surcharge on the freight to recover revenue lost. Another factor which influences port congestion surcharge would be labour disputes. Port congestion surcharges are calculated as a percentage of the freight rate as expressed in the previous examples.<\/li><\/ul>\n","protected":false},"excerpt":{"rendered":"<p>The following surcharges and rebates are generally applicable in ocean freight charges. Bunker Adjustment Factor (BAF): &#8220;Bunkers&#8221; is the generic name given to fuels and lubricants that provide energy to power ships. The cost of bunker oil keeps fluctuating continuously without any prior indication: Currency Adjustment Factor (CAF): The currency adjustment factor is a mechanism&#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-98202","page","type-page","status-publish","hentry"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Freight Surcharges and Rebates - Tutorial<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.vskills.in\/certification\/tutorial\/freight-surcharges-and-rebates\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Freight Surcharges and Rebates - Tutorial\" \/>\n<meta property=\"og:description\" content=\"The following surcharges and rebates are generally applicable in ocean freight charges. Bunker Adjustment Factor (BAF): &#8220;Bunkers&#8221; is the generic name given to fuels and lubricants that provide energy to power ships. 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Bunker Adjustment Factor (BAF): &#8220;Bunkers&#8221; is the generic name given to fuels and lubricants that provide energy to power ships. 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