Deviation Surcharge

Deviation Surcharge is one of the common surcharges in international shipping. It refers to the additional cost incurred when a vessel deviates from its original route (e.g., to avoid war, strikes, severe weather, pirate-infested areas, or canal congestion). It is charged by the shipping company to the cargo owner. It usually occurs when the original route is blocked and a longer alternative route is required, in order to compensate for increased fuel, time, and insurance costs. Use cases include the Red Sea crisis requiring diversion around the Cape of Good Hope, and the Panama Canal drought restricting transit. Notes: This fee is usually borne by the shipper, but it depends on the trade term (e.g., CIF, FOB) and contract terms. Cargo owners should pay attention to shipping company notices, confirm fees promptly, and adjust quotations accordingly. Unlike the Bunker Adjustment Factor (BAF) and Port Congestion Surcharge (PCS), the Deviation Surcharge is sudden and temporary, not a fixed charge. The difference is: BAF fluctuates with oil prices, PCS arises from port congestion, while the Deviation Surcharge directly results from a route change. Foreign trade practitioners should clearly stipulate surcharge-sharing clauses in contracts to avoid disputes.