Freight costs explained
Freight Costs Explained — Every Charge on an Australian Import Invoice
Cheap quotes are not usually dishonest. They are usually incomplete. This guide lists every charge that can appear between a supplier’s door and yours, so you can compare quotes on the same basis.
The anatomy of a freight bill
Origin charges
These arise before the goods leave the origin country. Whether you pay them depends entirely on your Incoterm — on EXW you pay all of them, on FOB your supplier does.
| Charge | What it is |
|---|---|
| Inland cartage / pickup | Trucking from the factory to the port, airport or consolidation warehouse. |
| Export customs clearance | Lodging the export declaration in the origin country. |
| Origin terminal handling (THC) | The terminal’s charge for receiving and loading the container. |
| CFS / consolidation charge | For LCL: receiving, measuring and loading your cargo into a shared container. |
| Documentation fee | Issuing the bill of lading or air waybill. |
| Fumigation / treatment | Where required for timber packaging or the commodity itself. |
| Container detention at origin | If the container is held at the factory beyond the free period. |
Main leg charges
| Charge | What it is |
|---|---|
| Ocean freight or air freight | The carrier’s charge for the international movement. |
| Bunker adjustment factor (BAF) | A fuel surcharge, adjusted periodically. |
| Currency adjustment factor (CAF) | An exchange rate surcharge on some lanes. |
| Peak season surcharge | Applied when capacity tightens, commonly before Chinese New Year. |
| Out-of-gauge surcharge | For cargo exceeding container dimensions. See oversized freight. |
| Fuel and security surcharges | Standard on air freight, quoted per kilogram. |
| Marine cargo insurance | Optional but strongly recommended; priced as a percentage of insured value. |
Australian destination charges
This is where incomplete quotes hurt. These charges are unavoidable, substantial, and frequently omitted from a headline rate.
| Charge | What it is |
|---|---|
| Terminal handling / wharfage | The Australian terminal’s charge for discharging and handling the container. |
| Infrastructure surcharge | Levied by terminals on transport operators and passed through. These have risen sharply in recent years. |
| Port service and documentation fees | Administrative charges from the carrier’s Australian agent. |
| Deconsolidation / unpack (LCL) | Separating your cargo from the shared container at a depot. |
| Customs entry lodgement | Preparing and lodging the import declaration. |
| Import declaration processing charge | A government charge on each declaration. |
| Duty and GST | See import duty and GST. |
| Biosecurity fees | Assessment, and where directed, inspection, treatment or fumigation. |
| Container transport | Wharf to your door, or to a depot for unpack. |
| Unpack / devanning | Where the container is emptied at a depot rather than your site. |
| Container detention | If the container is not returned within the free period. |
| Demurrage / storage | If the container is not collected from the terminal in time. |
| Redelivery / waiting time | If a delivery fails or the driver waits beyond the allowance. |
Compare properly
How to compare two freight quotes
Establish the scope
Is each quote port-to-port or door-to-door? Which Incoterm is assumed? A cheap port-to-port rate against a door-to-door price is not a comparison.
Look for the destination charges
If terminal handling, infrastructure surcharge, deconsolidation, customs entry and transport are not listed, they have not been removed from your future — only from the page.
Check what duty and GST assumptions were made
A quote that omits duty entirely may be assuming an FTA concession you cannot substantiate.
Check the validity and the currency
A rate quoted in US dollars with a 30-day validity is a different commitment to an Australian dollar all-in price.
Add the risk
Who lodges the entry, and when? Pre-arrival lodgement is worth real money in avoided demurrage.
Ask the awkward question
“Is there any charge I will receive from anyone other than you?” The answer tells you most of what you need to know.
Control the controllables
Which costs you can actually influence
| Cost | Can you control it? | How |
|---|---|---|
| Duty | Often yes | Correct classification, FTA claims, tariff concession orders. |
| Cube efficiency | Yes | Carton sizing, pallet configuration, high cube containers, buyer consolidation. |
| Destination charges | Partly | Buy FOB and appoint your own forwarder rather than accepting CIF. |
| Demurrage and detention | Almost entirely | Pre-arrival clearance, booked transport, somewhere to unpack. |
| Mode | Yes | Sea where possible, air where being late costs more, split shipments where sensible. |
| Shipment frequency | Yes | Fewer, fuller shipments cut freight per unit but increase working capital. |
| Ocean rate | Marginally | Volume commitments and timing; the smallest lever in practice. |
| Biosecurity treatment | Partly | Compliant timber, clean equipment, correct declarations. |
Almost everything on this list is decided before the cargo moves — which is why the most valuable conversation with a freight forwarder happens before you place the purchase order, not after.
FAQ
Freight cost questions
Why is my invoice higher than my quote?
The legitimate reasons are actual duty and GST differing from the estimate, biosecurity intervention, or cargo measuring larger than declared. The illegitimate reason is charges that were never disclosed. Our quotes itemise everything and mark estimates clearly.
What is an infrastructure surcharge and why does it keep rising?
It is a charge levied by container terminals on transport operators for accessing the terminal, which is passed through to importers. It has increased substantially at Australian ports in recent years and is now a meaningful line on every container.
How can I reduce my freight costs?
In order of impact: correct classification and FTA claims, consolidating suppliers into full containers, improving cube utilisation, switching from CIF to FOB, and eliminating demurrage. Negotiating the ocean rate is the smallest of these. See supply chain management.
Is it cheaper to use my supplier’s forwarder?
Rarely, once destination charges are counted. Ask us to compare a supplier CIF quote against an FOB landed cost — the exercise is usually revealing.
Do you charge for quoting?
No. Quoting and pre-purchase advice are free.
What does marine cargo insurance cost?
It is priced as a small percentage of the insured value, varying with commodity, packing and route. Given that carrier liability is limited by weight rather than value, it is usually the cheapest risk you will ever buy down.
Read next
More on cost and planning
Related guides and services covering the questions importers and exporters usually ask next.
- Freight planning — lead times, buffers and shipment frequency
- Container shipping — the FCL and LCL cost comparison in detail
- Import duty and GST — the statutory charges in your landed cost
- Avoiding demurrage and detention — the avoidable charges
Get an itemised quote you can actually compare
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