What is the LOCAL CHARGE value?
What is the LOCAL CHARGE value?
Local charge is the cost that the ship charges at that country. Today we will take you to know the cost of the local charge that the importer pays to whom. or for what In general, the costs are as follows:- Terminal Handling Charge or THC, this charge will be charged for using the port. It is an expense arising from loading and unloading goods both at origin and destination, including using a crane called Top, which is Burden fee, freight hauling fee.
- Container Freight Station or CFS. This cost will be incurred when the container is used to unload in the port, for example, in the case of LCL that requires space in the port for the loading of goods of many importers. out of the container and then transporting the goods to the warehouse to clear the goods, etc.
- Status or STS, this expense will be incurred in the case of LCL only. It's the cost of doing the paperwork. To change the container status of the shipping line from CY to CFS.
- Facility or FAC, this expense will occur only if Goods also need to be moved. Facilities such as trucks, or the use of various workers.
- Port Congestion Surcharge or PCS is an expense arising from the port having a lot of cargo ships. causing the port to be crowded As a result, it was not possible to take things off the ship normally. is caused by delays Causing the ship to park for a long time or have to rush to remove the container from the ship.
- Handling or H/L, expenses for various arrangements for import-export operators like work wages.
- Delivery Order or D/O document used for use in the process of goods release. This is a service fee charged by the shipping line.
Other local charges
- Currency Adjustment Factor or CAF is the risk from currency fluctuations.- Wharfage costs in the wharf similar to Facility.
- Bunker Adjustment Factor or BAF is the risk from the volatility of the fuel price.
Best way for Planning and controlling this part of expenses. That is, the importer should be aware of this cost before agreeing to buy and ship. In terms of CFR(CNF)/CIF, the importer may ask the exporter to inform the local charge first or use the FOB term transportation service to Control the cost of international transportation by yourself or use Ex-work to manage the transportation cost by yourself. The whole process will allow the leader to control the cost from origin to destination.
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