Surcharges cause many headaches for those involved in international shipping. Carriers charge for a range of things, including fuel surcharges, currency adjustment rates, peak season surcharges, Panama surcharges, Gulf of Aden surcharges and many more.
Fuel surcharges are currently either similar to, or higher than, the actual freight charges and this doesn’t seem likely to change. Recent research has shown that airlines’ fuel surcharges have risen more than twice as fast as the price of oil in the last two years.
Clearly, keeping abreast of the various charges and their ambiguities can be a real challenge. Not only do they vary from shipping line to shipping line but also from trade lane to trade lane and, in some cases, even the basis for charging varies.
As it is the forwarder who invoices for the various surcharges a shipment may incur, it is not surprising that forwarders are often perceived as the price setters. This is not the case – indeed, by law certain surcharges, such as fuel surcharges, are not permitted to be changed. The confusion surrounding the charging of surcharges, however, does mean that some less honourable forwarders use them as a means of revenue raising.
This is one of the ways in which ICE distinguishes itself from other forwarders: we have a strict policy of full disclosure of the surcharges we receive from our carriers and guarantee to never add our own margin. Our margins are derived from the freight, origin and destination charges only.
“We firmly believe that doing business with honesty and transparency is the only way to ensure the mutual satisfaction of customer and forwarder. We recognise that our reputation as an honourable and transparent price giver is paramount.”
Ronald Spahr, ICE CEO
Recent years have seen a number of multinational forwarders fined in Europe and the USA for manipulating currency and/or fuel surcharges. As with many things in business, it comes down to trust. Do you trust the forwarder you are dealing with?
If you’re not sure whether you’re paying more than you should, give us a call to discuss the various surcharges that apply to both international air freight services and international ocean freight services. Our experienced staff are always happy to help.
