In this category fall the extra charges levied by shipping lines and liner conferences
which do not come under the headings of temporary surcharges. They
are many and varied and reflect, for example, the chosen voyage, the type of
cargo and cargo handling.
Conventional cargoes come in many different shapes and sizes and shipping
lines often make an additional charge, known simply as an additional,
when a piece of cargo exceeds a certain weight or length.
Most shipping lines charge an additional sum when carrying heavy pieces,
the reason being that extra handling costs are incurred, such as the hire of
a mobile crane. This additional charge is known as the heavy lift additional,
heavy weight additional, heavy lift cargo additional or heavy
lift extra. It is an amount per tonne (1,000 kilogrammes) on a sliding scale
which increases as the weight increases. The amount is added to the freight
rate, and like the freight rate, is normally subject to any currency adjustment
surcharge in force at the time of shipment. It may not be subject to any
bunker surcharge, though, depending on the particular tariff. What constitutes
a heavy piece is often dictated by the particular trade, the commodities
regularly carried, port equipment and the vessels' lifting gear. In some trades,
the extra charge applies to any piece, package or bundle weighing over 5,000
kilogrammes. In others, the dividing line is 10,000 kilogrammes. Although a
heavy lift additional might apply to pieces over, say, 10,000 kilogrammes, the
charge is levied on the entire weight of the piece, normally the gross weight,
not just on the excess over 10,000 kilogrammes. In the case of a heavy lift
ship, this additional may even start at 70 tonnes.
A heavy lift surcharge may be charged by a container shipping line for
containers over a certain weight, such as 20 tonnes or 24 tonnes, often to
compensate for the loss of capacity when many such containers are shipped
on the same vessel.
While some pieces are unusually heavy, others are exceptionally long and
also require special handling, such as the use of spreader bars. Such pieces
may also take longer to load and discharge. This involves extra costs which
are passed on to the shipper as an additional charge known as a long length
additional. It is an amount per 1,000 kilogrammes or per cubic metre which
increases on a sliding scale as the length increases. This is added to the freight
rate and is subject to any currency surcharge (and bunker surcharge depending
on the particular tariff). As with heavy lift charges, different tariffs have
different starting points for the long length additional although many start
around the 40 foot mark, either at exactly 40 feet or 12.2 metres or 12.25
metres. In some cases, the additional charge is an amount per tonne for each
foot or part of a foot over whichever length is the starting point for this charge.
When a shipper has a large enough cargo to induce (attract) a ship to a
(smaller) port not normally called at, the shipping line may charge a direct
additional. Such a cargo is termed inducement cargo.
If the cargo is to taken to the port of loading by another ship, known as a
feeder ship, a feeder additional or transhipment additional is usually
Additional freight is an extra charge imposed in accordance with the
contract of carriage by a shipping line on the shipper, receiver or bill of lading
holder, as the case may be, for additional expenses incurred in discharging the
cargo. This charge generally applies when the port stipulated in the contract is
inaccessible or when to discharge there would result in an unreasonable delay
to the ship: under these circumstances, the shipping line may have an option
under the contract of carriage to proceed to another port to discharge the
cargo where extra costs may be incurred.
The elements which make up the freight rates do not take account of the
cost of bringing the goods to the ship (apart from some through transport
or combined transport rates). In the case of conventional cargo, a separate
charge exists for:
• receiving the goods into the port;
• storing them on the ground or in a warehouse, as appropriate, pending the
arrival of the ship; and
• delivery from store to the ship; and lifting to the ship.
Together, these make the FOB charges or simply FOBs. They are normally
an amount per 1,000 kilogrammes of cargo and vary according to
the commodity. Generally, in the liner trade FOBs are paid by the shipper
to the shipping line's agent who collects on behalf of the line. The money
is then remitted to the port authority. Large volume shippers, particularly
those who ship bulk cargoes, often pay the port authority direct. FOB
charges are generally quoted and paid in the currency of the country of
shipment. With liner shipments effected on full liner terms, there are no
other cargo handling charges to pay apart from the FOBs since the freight
rate includes stowage and securing. If, on the other hand, the freight rate
is free in, cargo interests will have stowage and securing charges to pay as
well as the FOBs.
In some parts of Europe, FOB charges are referred to as Port Liner Term
Charges. They may vary depending on the method used for delivering to the
port that is, by road, rail or barge.
A liner terms freight rate is defined as including some or all of the elements
of loading, stowing and discharging, or indeed none of these, according to
the custom of the particular port; whatever is not included at the discharge
port is paid for by the consignee. In some ports, however, it is the practice to
make a separate identifiable charge, called landing, storage and delivery,
• landing of the cargo to the quay;
• short term storage awaiting collection; and
• delivery from store to the consignee's vehicle.
This charge, known widely in its abbreviated form LS&D, is an amount
per freight ton, shown on the freight account and consequently paid by the
shipper and not, as one might expect, by the consignee.