Ocean Freight Surcharges Explained: BAF, PSS, GRI, and More

If you've ever looked at an ocean freight quote and wondered why the base rate is surrounded by a dozen acronyms, you're not alone. Ocean shipping uses a layered pricing structure: a base ocean rate plus a series of surcharges that reflect fuel, capacity, and market conditions. Here's what the common ones mean — in plain language, without any specific dollar amounts, since these change constantly.

Why surcharges exist

Carriers separate volatile and route-specific costs from the base rate so they can adjust them as conditions change — fuel prices, exchange rates, port congestion, and supply-and-demand swings. Bundling everything into one number would mean constant base-rate changes; surcharges let carriers flex the pieces that move.

That's the logic. For shippers, the practical effect is a quote with several line items. Knowing what they are makes the total far less mysterious.

BAF (Bunker Adjustment Factor)

BAF — sometimes called a bunker or fuel surcharge — covers the cost of marine fuel ("bunker"). Because fuel prices swing, carriers adjust this separately from the base rate. When fuel goes up, BAF tends to follow.

EFS / LSF (low-sulfur fuel surcharges)

Related to BAF, these surcharges reflect the cost of cleaner, low-sulfur fuels that carriers are required to burn under emissions regulations. You may see them as a standalone line or folded into the bunker surcharge, depending on the carrier.

PSS (Peak Season Surcharge)

PSS applies during high-demand periods when vessel space is tight. When more cargo is chasing limited capacity — often ahead of major retail seasons — carriers add a peak season surcharge. It comes and goes with the calendar and the market.

GRI (General Rate Increase)

A GRI is a broad increase to base rates on a given trade lane, announced by carriers and applied on a set date. Unlike a surcharge tied to a specific cost, a GRI is a market-driven reset of the base rate itself. They're more common on certain lanes and during tight capacity.

Other charges you may see

• THC (Terminal Handling Charge) — the cost of moving the container around the terminal at origin or destination.
• Documentation / BL fees — for issuing the bill of lading and related paperwork.
• CIC / equipment imbalance — when carriers reposition empty containers to where they're needed.
• Congestion or war-risk surcharges — situational charges tied to specific ports or routes.
• ISPS / security — port security-related fees.

The exact mix depends on the carrier, the lane, and the moment. We're deliberately not listing amounts — they're a moving target.

How to make sense of your quote

A few habits help:

• Ask for an all-in rate when you can, so you're comparing totals, not just base rates.
• Know which charges are stable vs. volatile. THC and documentation are fairly steady; BAF, PSS, and GRI move.
• Time matters. Peak season and announced GRIs can change the picture week to week.

Because Conveyco negotiates rates directly with major ocean carriers, we can walk you through each line on your quote and explain what's base, what's surcharge, and what's likely to move.

Where this fits in your shipment

Surcharges are just one part of landed cost. They sit alongside drayage, potential demurrage and detention, and inland trucking. Understanding the full stack — and choosing between FCL and LCL — is how you control total cost rather than just the headline rate.

Bottom line

Ocean surcharges look intimidating but follow a logic: they isolate volatile costs from the base rate. BAF is fuel, PSS is peak demand, GRI is a base-rate reset, THC is terminal handling. Want a quote with every line explained? Request a quote and we'll break it down for your lane, or explore our ocean freight services.