Origin Charge refers to various additional fees incurred at the port of origin (port of loading) that are collected by the carrier, freight forwarder, or port authority, in addition to the basic ocean freight. It typically includes Terminal Handling Charge (THC), documentation fee, booking fee, seal fee, equipment interchange receipt fee, port security fee, etc. Usage scenarios: Under trade terms such as FOB, CIF, and CFR, the buyer and seller must clarify who bears the origin charges. For example, under FOB, the buyer is responsible for ocean freight, but origin charges are often paid by the seller unless otherwise agreed in the contract. Precautions: The items and standards of origin charges vary greatly among different shipping lines and different ports of origin. When quoting, each item must be confirmed to avoid omissions that could lead to losses; also, distinguish origin charges from destination charges, which are incurred at the port of discharge. Difference from 'ocean freight': Ocean freight is the basic freight, while origin charges are additional fees. Difference from 'local charges': Local charges usually include local handling fees at both origin and destination ports, covering a broader scope.
📝 Examples
1. Under FOB terms, the seller bears the origin charges, including terminal handling charges and documentation fees, while the buyer is responsible for ocean freight and insurance. (Note: Under FOB, origin charges are typically paid by the seller.)
2. Please confirm the details of origin charges at Shanghai Port so that we can accurately calculate the costs in our CIF quotation. (Note: In a CIF quotation, the seller must include origin charges in the cost.)
💡 Foreign Trade Tips
Foreign trade terms are the foundation of international business communication
Trade practices may vary slightly by country; pay attention when using them
When using terms in contracts, specify the applicable version (e.g., Incoterms 2020)
For unfamiliar terms, use GlobalSync's multilingual email helper to confirm with your partner