Freight Charges Explained: How Sea and Road Freight Is Priced
What are freight charges, who pays them under each Incoterm, and which surcharges such as THC, BAF, CAF, demurrage and detention are added to ocean freight from Turkey.
Freight charges are the price paid to a carrier for moving cargo from one point to another. The term is used most often in sea shipping, but the same idea applies to road, rail and air transport. What you finally pay depends on the volume and weight of the cargo, the route, the transport mode and the balance of supply and demand on the market in the week you ship.
For a buyer importing from Turkey, the headline rate in a quote is rarely the full cost. This guide explains what freight charges include, how ocean freight is priced, which surcharges such as THC, BAF and CAF are added, who pays what under the main Incoterms, and what information you should send to get a quote you can compare.
What are freight charges and who pays them?
Freight is the price of the contract of carriage. In sea transport, the bill of lading (B/L) shows who pays: "freight prepaid" means the shipper paid at origin, "freight collect" means the consignee pays at destination. In road transport, the freight is paid by the sender or the receiver according to the transport contract and the CMR consignment note.
The real answer to "who pays" is the delivery term agreed between buyer and seller. Under EXW and FOB the buyer pays the main freight; under CFR, CIF, CPT and DAP the seller pays it up to the named place. We explain each term in our guide to Incoterms 2020. Check this before you sign the sales contract.
How freight charges are calculated
Rates are not a fixed tariff. They change with market conditions, season and exchange rates. Ocean freight is especially volatile: container availability, vessel capacity, fuel prices and global trade volumes can move rates from week to week. The main factors are:
- Route and distance: rates to the Far East, Northern Europe and the Americas move at different levels.
- Container type and size: 20', 40', 40' high cube and reefer containers are priced differently; reefer is the most expensive group.
- FCL or LCL: a full container load is priced per container; a less-than-container load is priced per cubic metre or by weight.
- Season: rates rise in busy periods such as the end of the year and the weeks before Chinese New Year.
- Fuel and currency: passed on through the BAF and CAF surcharges.
- Nature of the cargo: dangerous goods, out-of-gauge and heavy cargo carry extra charges.
- Port of loading: ports with frequent sailings usually offer more competition between lines.
For road shipments the logic is different: distance, empty return, tolls, permits and border waiting matter more than container markets. We cover that side in our article on how international freight rates are calculated.
Surcharges added to ocean freight
The figure in a sea freight quote is often only the basic ocean freight. Port charges, surcharges and document fees are added on top. To see the total cost, ask for each item to be listed separately in the quote.
| Item | Meaning | What it covers |
|---|---|---|
| Ocean freight | Basic sea freight | Port-to-port carriage |
| THC | Terminal Handling Charge | Loading and unloading the container at the terminal; charged separately at origin and destination |
| BAF | Bunker Adjustment Factor | Passes changes in ship fuel prices on to the freight |
| CAF | Currency Adjustment Factor | Balances exchange rate fluctuations |
| Document fees | B/L, manifest, telex release | Issuing the bill of lading and related paperwork |
| ISPS | Port security fee | Measures under the International Ship and Port Facility Security Code |
| Demurrage | Container waiting inside the port | Daily charge for a full container left in the terminal after the free time |
| Detention | Container kept outside the port | Daily charge when the container is returned late after the free time |
| Peak season surcharge | Busy season fee | Applied in periods of high demand |
Some of these items are paid at the port of loading and some at the port of discharge. If the term is CIF or CFR, the seller pays origin charges and the ocean freight, while the buyer pays destination THC and document fees. Make sure the quote states clearly which party pays each item; this prevents surprise invoices on arrival.
Demurrage and detention are the items buyers overlook most often. Free time is limited to a few days on many lines, and if customs or a missing document holds the container for a week, the bill grows quickly. Definitions of these and other terms are in our freight and logistics glossary.
All-in rates, spot rates and contract rates
An all-in rate combines the basic freight with BAF, CAF and similar surcharges in a single figure. When you compare offers, always ask whether the price is all-in or ocean freight only; otherwise a quote that looks cheap can become expensive once the extra items are added. THC and document fees are usually kept outside the all-in price.
Spot rates
A spot rate is a price given for one shipment based on that week's market. It is attractive when demand is low and rises quickly in busy periods.
Contract rates
A contract rate is agreed in advance with a shipping line or forwarder for a fixed period and volume. It gives regular shippers a predictable budget; in return, the committed volume is expected to be loaded.
Freight charges for cargo from Antalya
Containers from the Antalya region usually leave through Antalya port or Mersin port. A quote should therefore show not only the ocean freight but also the trucking from the factory to the port, origin THC and customs brokerage, or state clearly that these are covered by the supplier. Asking for two quotes, one via Antalya and one via Mersin, is a practical way to compare the total cost; see our comparison of Antalya port vs Mersin port.
For fresh fruit and vegetables from the region's greenhouses, reefer container rates matter most. Reefer freight is higher than dry container freight and adds items such as reefer plug-in fees at the terminal. For heavy cargo like natural stone and marble, the container's weight limit and heavy-cargo surcharges drive the price.
What to send when you ask for a quote
The more precise your request, the more accurate the reply. Share the following:
- HS code, description of the goods and whether they are dangerous goods
- Container type and number, or volume and weight for LCL or groupage
- Place of loading and destination, and whether you need door-to-door delivery
- Incoterm agreed with your supplier and which party pays the freight
- Ready date at the supplier and target arrival date
- Expected free time at destination, to estimate demurrage and detention risk
Also ask how long the quote is valid. Ocean freight is usually offered until a certain date, and if loading slips past it, the rate is renewed. Customs and document requirements should be checked against current regulations in the destination country.
Frequently asked questions
What are freight charges, in short?
Freight charges are the fee paid to the carrier for moving the cargo. In sea transport the basic part is called ocean freight, and items such as THC, BAF and CAF are added on top.
How is freight calculated?
For FCL it is priced per container; for LCL per cubic metre or tonne, whichever is higher. Route, container type, season, fuel and currency are the main factors, and rates change with market conditions.
Is THC included in the freight?
THC is the terminal fee for handling the container in the port. In most quotes it is shown separately from the freight and is paid at both the port of loading and the port of discharge.
What is the difference between demurrage and detention?
Demurrage is charged when a full container stays in the port beyond the free time. Detention is charged when the container is kept outside the port, for example at the buyer's warehouse, for longer than the free time allows.
BNK Logistics (BNK Lojistik), based in Muratpaşa, Antalya, plans road, sea and rail shipments and presents freight quotes with trucking, port charges and document fees shown separately, so you can see the full cost before you book. Send your cargo details through our quote form or call +90 542 485 53 70 or message us on WhatsApp at +90 545 485 53 70.
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