Transshipment Surcharge is a common additional charge in international ocean shipping, referring to a fee levied by the carrier on the cargo owner when goods need to be transferred to another vessel at an intermediate port during transportation. It usually occurs when there is no direct vessel, when direct vessel space is insufficient, or when a specific route requires transshipment. This charge may be listed separately in addition to the basic freight, or it may already be included in the lump-sum freight. Usage scenarios include: when a letter of credit requires direct shipment but transshipment is actually needed, when a freight forwarder's quotation does not include transshipment costs, or when the carrier imposes it due to increased operating costs from transshipment. Precautions: The cargo owner should confirm before booking whether transshipment is required and the amount of the surcharge, to avoid disputes at the time of payment; if the letter of credit prohibits transshipment, then a transshipment arrangement cannot be accepted. Unlike "transshipment fee," transshipment surcharge is an additional charge levied by the carrier, whereas transshipment fee may refer to operational costs incurred at the transshipment port. In contrast to "direct shipment surcharge," the latter is an additional charge for direct shipment. Understanding this term helps to accurately calculate logistics costs and prevent trade risks.
📝 Examples
1. Our quotation is based on the basic freight from Shanghai to Hamburg. If transshipment at Singapore is required, an additional transshipment surcharge of USD 200 per 20-foot container will apply. (Note: The quotation does not include the transshipment surcharge, which must be confirmed separately.)
2. The letter of credit stipulates that transshipment is prohibited. Therefore, you must choose a direct vessel; otherwise, any transshipment surcharge and discrepancies arising therefrom shall be borne by you. (Note: This emphasizes the relationship between the letter of credit terms and the transshipment surcharge.)
💡 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)
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