Import & Export Guides
How to Read a Sea Freight Quotation: Validity, Surcharges and the Small Print
Oct
Two forwarders send you sea freight quotes for the same 40-foot container from Ningbo to Chattogram. One looks clearly cheaper. Three weeks later, the invoice from the “cheaper” one is higher than the other quote ever was. This happens constantly, and it is rarely fraud. It happens because a sea freight quotation is not a single price — it is a bundle of charges, some included and some quietly left out, governed by validity dates and conditions that most buyers skim past.
This guide takes a typical China–Bangladesh sea freight quote apart line by line, so you can see what each block means and compare quotes on a like-for-like basis.
The three blocks every quote is built from
Almost every sea freight quotation, whatever its layout, divides into three blocks:
- Origin charges — everything that happens in China before the container is on board: trucking from the factory, export customs declaration, terminal handling at the load port, documentation, seal, and VGM submission.
- Ocean freight — the carriage from load port to Chattogram, plus a stack of surcharges attached to it.
- Destination charges — charges raised in Bangladesh: terminal handling at Chattogram, delivery order fees, and for LCL, CFS charges at the depot.
Which of these blocks you should even see on your quote depends on your Incoterm. If you buy FOB, the supplier pays origin charges and your quote should start at the ocean freight. If you buy EXW, origin charges are yours. Our Incoterms guide explains the split. A common source of confusion is comparing an EXW-based quote from one forwarder with an FOB-based quote from another — they are not quoting the same scope.
Ocean freight and the surcharges stacked on top
The base ocean freight is often shown as a single figure per container (for FCL) or per cubic metre or revenue ton (for LCL — see how W/M pricing works). On top of it sit surcharges that carriers adjust independently:
- BAF (bunker adjustment factor) and its relatives, which move with fuel costs — explained in our BAF and CAF guide.
- LSS (low sulphur surcharge) and EBS (emergency bunker surcharge) — see LSS and EBS.
- PSS (peak season surcharge) and GRI (general rate increase), announced by carriers with notice — covered in peak season surcharges.
- Congestion surcharges applied when a port is under pressure — see PCS.
The key question for each surcharge is whether it is included in the figure you are looking at, listed separately, or not mentioned at all. An “all-in” ocean rate means surcharges are folded in at today’s level. A rate described as “plus surcharges” or “subject to BAF/PSS at time of shipment” means the final figure can move after you accept.
Destination charges at Chattogram
This is the block most often left out of a quote that looks cheap. Destination charges are usually collected by the shipping line’s or forwarder’s local agent in Bangladesh before they issue the delivery order, which means you cannot get your cargo without paying them. They typically include destination terminal handling charges, a delivery order fee, and sometimes documentation, cleaning or equipment-related fees. For LCL, the destination CFS charges at the depot can be significant relative to a small shipment.
A quote that says “destination charges as per carrier tariff” or “local charges at actual” is telling you those charges exist but not what they are. Ask for them in writing before you compare.
Validity: the date that matters is not the quote date
Every quote carries a validity, but the wording varies and the difference matters. Common forms are:
- Valid until a date — but valid for what? Bookings made by that date, or containers gated in by that date, or vessels sailing by that date?
- Valid for sailings within a period — the rate applies only if the container actually sails in that window.
- Valid for gate-in by a date — the container must be delivered to the terminal by then.
If production in China runs late and your container misses the validity window, the forwarder is usually entitled to re-quote at the rate applying when it actually ships. In a rising market, that can wipe out whatever you saved by choosing the cheaper quote. When your production lead time is uncertain, ask how the quote treats a slip of a week or two, and prefer validity that is tied to the sailing you are realistically going to make.
Subject-to clauses and what they really mean
Sea freight quotes nearly always carry a few conditions in small print. Understanding them prevents arguments later:
- Subject to space and equipment availability — the rate is not a guarantee that a container or vessel space will be available. In tight periods, the forwarder may offer a later sailing or a higher rate. Our article on vessel rollover explains the related risk after booking.
- Subject to carrier GRI/PSS — any increase announced before shipment will be added.
- Subject to weight limits — heavy cargo may attract overweight charges or need a different container; see container weight limits.
- Excluding duties, taxes, insurance, inspection, demurrage and detention — standard exclusions, but they need their own budget lines.
- Free time at destination — sometimes stated, sometimes not. More free time can be worth more than a small rate difference if your clearance tends to be slow.
Comparing two quotes line by line
The cleanest way to compare quotes is to rebuild both on the same grid. The table below shows the questions to ask for each line, rather than any numbers, because the right figures depend on your lane, timing and cargo.
| Line item | What to confirm on each quote |
|---|---|
| Scope / Incoterm | Does the quote start at factory, at load port, or on board? |
| Ocean freight | Per container or per W/M? All-in or plus surcharges? |
| BAF / LSS / EBS | Included, listed separately, or omitted? |
| PSS / GRI | Fixed now, or added if announced before sailing? |
| Origin charges | Listed by item, or bundled? Who pays under your Incoterm? |
| Destination charges | Stated in figures, or only as at actual or as per tariff? |
| Validity | By booking date, gate-in date or sailing date? |
| Routing and transit | Direct feeder or via which hub? Estimated transit stated? |
| Free time | Days of combined or separate free time at Chattogram? |
Once both quotes are on this grid, the “cheap” one is often revealed as cheap only because it omits destination charges or leaves surcharges open.
LCL quotes have their own traps
Quotes for less-than-container cargo look simpler than FCL quotes, but they hide different traps. The ocean rate is charged per revenue ton, meaning the greater of cubic metres or metric tonnes, and many forwarders apply a minimum charge of one revenue ton however small your shipment is. Origin consolidation fees and destination CFS charges are also charged per revenue ton, and for a small shipment they can outweigh the ocean freight itself. When you compare LCL quotes, ask for the total landed at the Chattogram depot for your exact volume and weight, not a per-unit rate in isolation. Also ask which off-dock depot the cargo will be unstuffed at, because handling and storage charges are set by the depot, and how many days of free storage apply before rent starts. If your shipment is close to the size where a full 20-foot container becomes competitive, ask for both options; our LCL versus FCL guide explains where that crossover usually sits and why it depends on your cargo.
Common mistakes when accepting a quote
- Comparing only the ocean freight figure — and then paying unbudgeted destination charges to get the delivery order.
- Ignoring validity — booking on an expired rate and being re-quoted at a higher level.
- Accepting by phone or chat without a written quote reference — making disputes hard to settle later.
- Not stating cargo weight and dimensions accurately — so the quote is based on the wrong container type or LCL volume.
- Choosing the lowest rate with the least free time — and then losing the saving to storage and detention.
For a broader picture of how these charges add up to your total landed cost, see our total cost of importing guide and our list of hidden charges.
Every shipment is different, so we do not publish fixed rates or timelines for sea freight. Tell us your product, volume and destination and ask us for a quote built around your needs. You can also see our full sourcing, freight and C&F services, use our China sourcing and buying agent service, or browse products we already source.
