THC (Terminal Handling Charge)

The cost of handling containerized cargo at the port (e.g. loading/unloading, storage and movement of containers)

GRI (General Rate Increase)

A uniform increase in shipping rates by ocean line carriers across specific trade routes. It’s applied to compensate for rising operational costs such as fuel, labor, port fees and changes in market demand. A GRI is typically implemented in October/November for the following year.

PSS (Peak Season Surcharge)

An additional fee that the shipping lines apply during periods of high demand or ‘peak season’ to compensate for higher operational costs, capacity constraints and increased demand. It’s usually charged per container and applies to both FCL and LCL shipments.

Customs Clearance Fees

Charges applied for processing customs documentation through a country’s customs authorities. The fees are usually charged by a customs broker or freight forwarder. Port Congestion Surcharge:

Port Congestion Surcharge

A fee applied by shipping lines to compensate for extra costs, such as increased waiting times, fuel usage or handling, incurred at congested ports. It’s typically announced in advance or at busy peak seasons.

How much does it cost to ship a 40ft container from China to Germany by sea?

Shipping a 40ft container from China to Germany by sea typically costs between roughly $2,500 and $6,000 USD, depending on the origin and destination ports, current market conditions, and seasonality. For a more precise estimation, please contact our Forto sea freight experts, who will be happy to advise.

What is the cheapest way to ship internationally?

For large or bulky shipments, sea freight is the most cost-effective method of shipping internationally. While transit times are longer, it offers significant savings. To get the best shipping rates, we recommend planning ahead, taking advantage of seasonal offers, and utilising online tools to compare shipping rates across different carriers and platforms.

Is sea freight cheaper than air freight?

Yes, for large, heavy and non-urgent shipments, sea freight is typically cheaper than Air Freight, which offers faster delivery times. Air freight costs are calculated based on chargeable weight (the greater of either actual weight or volume). Sea freight costs are often based on container space (FCL) or volume for LCL shipments. But the cost-effectiveness of sea versus air depends on factors such as shipment size, urgency, and customer-specific needs.

How is LCL CBM calculated?

LCL CBM (Cubic Meters) is calculated by multiplying the length, width, and height of a shipment in meters: CBM = Length (m) × Width (m) × Height (m). From this, the volumetric weight of the total shipment is calculated using a maritime conversion factor (typically 1 cubic meter per 1,000 kilograms). The result is compared to the shipment’s actual weight, and the freight cost is based on whichever value is greater.

How long does sea freight take?

Sea freight transit times vary significantly between 7 and 40 days, depending on the route, origin and destination ports, weather conditions, port congestion, customs and time of year, to name a few. Additionally, Less than Container Load (LCL) shipments require extra time for consolidation and deconsolidation at the ports.

Understanding Shipping Costs

The complexities of international shipping make predicting freight costs a challenging task for businesses. Forto’s cost calculator and expert advice help you navigate the freight rate maze, so your goods reach their destination fast, efficiently and within budget.

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What factors influence sea freight costs?

Understanding the major internal and external drivers of freight costs will help you make smarter decisions when planning your shipments.

During high-demand periods, such as Chinese New Year, Christmas or other retail-driven cycles, carriers apply Peak Season Surcharges (PSS) on top of standard freight rates. This is done to balance increased operational costs and limited vessel space with surging demand.
The global oil market is highly volatile, so carriers apply the Bunker Adjustment Factor (BAF) surcharge to fuel prices, typically on a monthly or quarterly basis across major trade lanes. Under the IMO 2020 regulations, vessels are required to use low-sulfur fuel oil (LSFO). To cover the higher cost, carriers charge a Low Sulphur Surcharge (LSS), which varies by carrier and route and helps control emissions near ports and populated coastlines.

Incoterms establish a clear point of handover, determining who pays for which part of the cargo journey. Your choice of Incoterms can influence your freight costs, depending on whether you are importing or exporting.

Most commonly used Incoterms
In Full Container Load (FCL) shipments, a flat rate is charged for the entire container. This can result in a lower cost per unit for large shipments, especially when the volume of goods justifies the cost.

Less than Container (LCL) loads, by contrast, are calculated based on the volume (cubic meters/CBM) or weight of the cargo. It benefits shippers with smaller volumes, allowing them to only pay for the space their cargo occupies in a shared container. This significantly reduces costs compared to FCL, but it also involves other costs, such as consolidation, deconsolidation, and handling fees.
Sea freight rates are generally lower and more stable in major trade lanes (e.g. China–Europe, Trans-Pacific, Asia–US East Coast) because of the high volumes of traffic and carrier competition. On less common routes with lower frequency of sailings, there is less competition and capacity, which often drives up the prices.

The further your goods travel, the more fuel consumption, vessel usage, and workforce hours are required, as well as potentially multiple modes of transportation. Factors which all lead to increased shipping costs.
Freight rates vary depending on the type of cargo. General cargo, such as dry containers carrying non-specialized goods, is the most cost-effective due to its minimal handling requirements. Hazardous (HAZMAT), refrigerated (reefer), or oversized/out-of-gauge (OOG) cargo types, which require additional safety measures and handling, significantly increase the sea freight costs.

FCL vs. LCL: Key features at a glance

Businesses often need to decide between FCL and LCL shipping. The following chart outlines the differences to help guide your decision. If you would like more information to help you make a decision, our logistics experts are here for you. Get in touch

A table comparing Full Container Load and Less Than Container Load shipments to help take a decision what fits better for which situation

Decoding surcharges & hidden fees

The base rates quoted to businesses often cover only a fraction of the total shipping costs. Surcharges and hidden fees can quickly exceed the initial quote and impact budgets.

Expand each section to see what’s behind the surcharges.

6 tips to reduce your sea freight costs

Reducing freight costs protects your business’s profits. We’ve put together some practical tips to help you optimize your shipments to reduce costs.

During peak season, surging demand leads to tight vessel capacity, greater competition and higher freight rates. Many carriers also impose additional fees, such as Peak Season Surcharges (PSS). Shipping in the off-season will avoid extra charges and keep your rates more predictable.

You can reduce costs by efficiently combining smaller, less-than-full loads (LCL) in shared containers. It also reduces handling, customs and paperwork costs through fewer shipments. Load optimization software can be used to maximize space and more effectively consolidate different cargo within containers.
For a buyer (importer), Incoterms such as EXW (Ex Works) and FOB (Free on Board) are good options. They allow you to take control at origin, choose your own forwarder and control the main carriage logistics yourself. This can also help avoid hidden fees.

For a seller (exporter), CIF (Cost, Insurance & Freight) or CFR (Cost & Freight) are often best, as they allow you to arrange freight to the buyer’s port, giving you more control over costs.

In both cases, you should first assess your logistics capabilities. It’s often a good idea to partner with a reliable freight forwarder to manage the logistics and negotiate the best rates.

Current market trends

For the latest updates and insights on air and sea logistics, check out Forto’s Quarterly Logistics Pulse, and find out what’s shaping global logistics this quarter.

In the follow-up Webinar, our experts share their key takeaways and actionable insights.

Download the latest report

Frequently Asked Questions

For large or bulky shipments, sea freight is the most cost-effective method of shipping internationally. While transit times are longer, it offers significant savings. To get the best shipping rates, we recommend planning ahead, taking advantage of seasonal offers, and utilising online tools to compare shipping rates across different carriers and platforms.
Yes, for large, heavy and non-urgent shipments, sea freight is typically cheaper than Air Freight, which offers faster delivery times. Air freight costs are calculated based on chargeable weight (the greater of either actual weight or volume). Sea freight costs are often based on container space (FCL) or volume for LCL shipments.

But the cost-effectiveness of sea versus air depends on factors such as shipment size, urgency, and customer-specific needs.
LCL CBM (Cubic Meters) is calculated by multiplying the length, width, and height of a shipment in meters: CBM = Length (m) × Width (m) × Height (m). From this, the volumetric weight of the total shipment is calculated using a maritime conversion factor (typically 1 cubic meter per 1,000 kilograms).

The result is compared to the shipment’s actual weight, and the freight cost is based on whichever value is greater.
Sea freight transit times vary significantly between 7 and 40 days, depending on the route, origin and destination ports, weather conditions, port congestion, customs and time of year, to name a few. Additionally, Less than Container Load (LCL) shipments require extra time for consolidation and deconsolidation at the ports.

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Understanding Shipping Costs

Calculate & understand your sea freight rates

What factors influence sea freight costs?

FCL vs. LCL: Key features at a glance

Decoding surcharges & hidden fees

6 tips to reduce your sea freight costs

Ship during the off-season

Book in advance (3-4 weeks minimum)

Optimize your packaging to reduce volume (CBM)

Consolidate shipments

Choose the right Incoterms for your needs

Work with an experienced freight forwarder

Frequently Asked Questions

Ready to ship? Let our experts handle the logistics.

Ready to ship?
Let our experts handle the logistics.