These are the most basic and common abbreviations for charges in ocean freight quotes, clearly corresponding to five major categories: ocean freight, terminal handling, documentation, port security, and emergency fuel surcharge. Each item has a fixed definition, charging logic, and whether it is mandatory.
Below, Weefreight will provide detailed explanations to help you understand.
I. O/F (Ocean Freight)
Meaning: The basic cost of ocean liner transportation, the core freight charge for transporting containers from the port of origin to the port of destination, and the main part of the ocean freight quote.
Charging method: For full container loads, it’s a fixed price per 20GP/40HQ/40HC container; for less than container loads (LCL), it’s charged per CBM or per ton.
Is it mandatory: Absolutely mandatory. No shipping means no logistics; all ocean freight shipments are subject to this charge, with no possibility of exemption.
II. THC (Terminal Handling Charge)
Meaning: A comprehensive service fee charged by the port terminal for lifting, stacking, handling, gate operations, and mechanical operations of containers. It includes Origin Terminal Handling Charge (OTHC) and Destination Terminal Handling Charge (DTHC).
Is it mandatory: Mandatory charge. This charge is incurred whenever goods enter or leave the terminal. It is collected uniformly by shipping companies and terminals, and cannot be waived for any channel or cargo.
III. DOC (Document Fee)
Meaning: The service fee for issuing the ocean bill of lading (MB/L), system entry, document processing, and telex release/original bill of lading operations by the shipping company.
Is it mandatory: Mandatory charge. One shipment corresponds to one set of bills of lading. Documents are legal documents for customs, terminals, and cargo collection; without documents, cargo cannot be collected, therefore this charge is mandatory. IV. ISPS (International Ship and Port Facility Security Charge)
Meaning: Security fees arising from the International Ship and Port Facility Security Code, used for port security checks, monitoring, security personnel, and anti-terrorism systems. Charged per container or per shipment.
Is it mandatory? Mandatory for all global shipping routes. It is a compliance fee required by international conventions, collected uniformly by shipping companies with no exceptions or waivers.
V. EBS (Emergency Bunker Surcharge)
Meaning: An emergency fuel surcharge collected by shipping companies due to significant fluctuations in international crude oil prices. It is a variable surcharge, generally levied when oil prices are high, and may be suspended or merged into O/F when prices are low.
Is it mandatory? Not fixed and mandatory, but commonly charged in the industry:
Depending on the route, shipping company, and peak/off-peak seasons, it may be charged, suspended, or directly included in the ocean freight without being listed separately;
Listing EBS separately in the quotation is transparent and does not represent overcharging; merging it into O/F is a bundled pricing model, and does not mean this cost is absent.
VI. Quick Summary and Key Points for Judgment
Absolutely mandatory, no exceptions: O/F, THC, DOC, ISPS are basic compliance fees that will be reflected in all legitimate quotations. There is no such thing as “free” or “waived,” only whether they are listed separately or not.
Variable and flexible, not fixed and mandatory: EBS fluctuates with oil prices and market adjustments, and can be listed separately or included in the bundled price. It is a point of observation for negotiation and quotation structure.
Key to avoiding pitfalls: Low-price quotations often understate O/F, hide THC/DOC/ISPS by charging them at the destination port, or only quote partial fees. To determine if a quotation is complete, check if all basic fees for both the origin and destination ports are listed, focusing on the total cost rather than individual item prices. (Note: The above information regarding timelines or costs is for reference only. Please refer to the actual situation at the time of shipment for specific details. Thank you!)
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