Fuel surcharges in cross-border logistics are dynamic surcharges added separately to the basic freight by logistics providers (shipping companies/airlines/express companies) to hedge against the risk of fluctuations in international fuel prices. There is no single fixed rate; it is adjusted in real-time according to oil prices, routes, and logistics methods. It is charged by all cross-border logistics channels (sea freight/air freight/international express) and is a significant variable cost in freight charges. The core charging logic is either “calculated as a percentage of the basic freight” or “calculated as a fixed amount per unit (container/kilogram),” with significant differences in rules across different channels.
Next, Weefreight will provide you with a detailed analysis, hoping to be helpful to you.
Core General Premises
Fuel surcharges are not included in the basic freight. If the freight forwarder’s quote is a “pure basic price,” this item needs to be added separately; if it is an “ALL IN price,” you need to confirm whether the current fuel surcharge is already included.
Rates are adjusted regularly: Sea freight is usually adjusted monthly, while air freight/express is usually adjusted weekly/bi-weekly. When oil prices fluctuate significantly, an “Emergency Bunker Surcharge (EBS)” may be temporarily added and charged in addition to the regular fuel surcharge.
Calculation basis: Calculated based on chargeable weight/chargeable unit (sea freight by full container/bulk cargo volume, air freight/express by chargeable weight), consistent with the freight calculation basis.
Currency uniformity: Mostly charged in the settlement currency of the logistics channel (sea freight/air freight are mostly in US dollars, international express can choose RMB/US dollars, and freight forwarder quotes will be converted to a unified currency). I. Sea Freight Channels: Bunker Adjustment Factor (BAF) – Different Rules for Full Container Loads (FCL) and Less than Container Loads (LCL)
The bunker adjustment factor (BAF) in sea freight is the largest component of sea freight surcharges. During peak seasons or periods of rising oil prices, it can account for 10%-30% of the basic sea freight cost, and even higher on some routes.
- Full Container Load (FCL) Sea Freight
Main charging method: Charged as a fixed amount per container type (the most straightforward method, without complex calculations). Shipping companies publish BAF rate tables for each route monthly, specifying fixed dollar amounts for 20GP/40GP/40HQ containers.
Example: For the West Coast of the US route, the BAF for the current month is $200/20GP and $400/40HQ. Regardless of the basic sea freight cost, the corresponding amount is added directly to each container.
Minority method: Some long-haul routes charge a fixed percentage of the basic sea freight cost. Example: Basic sea freight cost is $1000/20GP, BAF rate is 15%, so an additional $150/container is charged.
Note: For routes such as the Red Sea/Mediterranean, if oil prices surge, an EBS (Emergency Bunker Surcharge) will be added, charged as a fixed dollar amount per container type, collected in parallel with BAF, and cancelled when oil prices fall.
- Less than Container Load (LCL) Sea Freight
Charging method: Charged based on the chargeable volume (CBM) or chargeable weight (kg, whichever is greater) of the LCL cargo. The BAF rate published by freight forwarders for LCL cargo is in “dollars/CBM” or “dollars/kg”.
Example: For the European LCL route, the BAF is $5/CBM. If the chargeable volume of the cargo is 3 CBM, then an additional 3 × 5 = $15 is charged. Features: Bulk cargo BAF (Bunker Adjustment Factor) rates are adjusted based on the distance of the shipping route, with long-haul routes being significantly higher than short-haul routes (e.g., US routes > European routes > Southeast Asian routes).
II. Air Freight Channels: Fuel Surcharge (FAF) – Charged proportionally to the chargeable weight
The fuel surcharge for air freight is labeled as FAF (Fuel Adjustment Factor). The rate fluctuates more frequently and is directly affected by international aviation fuel prices, making it a core variable in air freight costs.
Core charging method: Charged as a fixed percentage of the basic air freight rate (industry standard, no fixed amount)
Calculation logic: Fuel surcharge = Basic air freight rate (RMB/kg or USD/kg) × Current FAF rate × Chargeable weight (kg)
Example: Basic air freight rate 50 RMB/kg, current FAF rate 8%, chargeable weight 100kg, then the fuel surcharge = 50 × 8% × 100 = 400 RMB, total freight cost = (50 + 50 × 8%) × 100 = 5400 RMB.
Note: Some freight forwarders, for ease of quoting, will combine “basic freight + fuel surcharge” into an “all-in price,” labeled as “54 RMB/kg (including 8% fuel surcharge).” It is necessary to confirm the validity period of the rate to avoid later surcharges due to rate increases.
Special circumstances: Air freight dedicated lines/charter flights
Some air freight dedicated lines (such as China-US dedicated lines, China-Europe dedicated lines) will charge a fixed amount per kg for fuel surcharge. For example, if the FAF is 4 RMB/kg and the chargeable weight is 100kg, an additional 400 RMB will be charged. This is suitable for scenarios requiring precise cost estimation, and the rate adjustment frequency is lower than conventional air freight (approximately once a month). III. International Express Shipping Channels (DHL/FEDEX/UPS/TNT): Fuel Surcharge – Calculated at a globally uniform rate
The fuel surcharge for international commercial express shipping follows globally uniform rules. The four major express companies publish a globally uniform FAF (Fuel Adjustment Factor) rate (percentage) monthly/weekly, applicable to all countries/regions and routes without route differences. This is the most standardized calculation method.
Core calculation method: Calculated as a fixed percentage of the express “total shipping cost”.
Calculation logic: Fuel surcharge = (Base shipping cost + registration fee/remote area surcharge, etc.) × Current FAF rate. Only “customs duties/customs clearance fees” and other actual expenses are excluded; all other shipping-related costs are included in the calculation base.
Key point: The chargeable weight for express shipping is the greater of “actual weight/volumetric weight”. The fuel surcharge is calculated based on the final determined chargeable weight, consistent with the shipping cost calculation.
Example: DHL base shipping cost 1000 RMB, registration fee 50 RMB, current FAF rate 7%, then the fuel surcharge = (1000+50) × 7% = 73.5 RMB, total shipping cost = 1000 + 50 + 73.5 = 1123.5 RMB.
Additional Information
The FAF rates of the four major express companies are updated weekly and can be checked on their official websites for real-time rates. Freight forwarder quotations will synchronize with the latest rates. If the shipping cycle is long, allowance should be made for potential rate increases.
Express delivery surcharges for remote areas, residential delivery fees, etc., all require the addition of a fuel surcharge (i.e., these surcharges also have a fuel surcharge added at the FAF rate). This is a common pitfall in express fuel surcharge calculations, and many people overlook this additional charge.
Example: Remote area surcharge 200 RMB, FAF 7%, then the actual remote area surcharge to be paid is 200 × (1 + 7%) = 214 RMB. IV. Key Points to Avoid Pitfalls in Cross-Border Logistics Fuel Surcharges
Confirm these 3 points when getting a quote: ① Whether the fuel surcharge is included; ② The method of calculating the fuel surcharge (percentage / fixed amount); ③ The validity period of the rate, to avoid price increases and additional charges at the time of shipment (it is recommended to have the freight forwarder confirm this in writing, via email or quotation).
Lock in prices during periods of oil price fluctuations: If you have a large volume of shipments (such as full container load sea freight / bulk air freight), you can negotiate with your freight forwarder to lock in the current fuel surcharge rate (usually for 7-15 days) to avoid sudden cost increases due to short-term oil price spikes.
Distinguish between “regular fuel surcharges” and “emergency fuel surcharges”: Sea freight EBS and air freight temporary fuel surcharges are additional charges. You need to ask your freight forwarder to clearly state whether the quote includes these temporary fees, especially for routes easily affected by oil prices/geopolitical factors such as the Red Sea, US West Coast, and Europe.
Avoid miscalculations for LCL/express shipments: LCL sea freight is charged per CBM; you need to verify the CBM quantity. International express shipments include remote area surcharges and residential delivery fees, which are added to the fuel surcharge. Before shipping, ask your freight forwarder to provide a complete breakdown of all costs, not just the basic freight cost.
Verify the rates during settlement: After shipment and during settlement, ask your freight forwarder to provide a screenshot of the current fuel surcharge rate table from the shipping company/express company, and verify the fuel surcharge amount based on the actual billing unit to avoid overcharging or incorrect charges by the freight forwarder.
(Note: The above timeframes and costs are for reference only; please refer to the actual situation at the time of shipment. Thank you!)
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