GlossaryEN1 min readUpdated: Jun 25, 2026

International Freight Charge Calculation

Transparent cost breakdown is the foundation of any reliable international freight quote.

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Last updated: 25 June 2026Published: 19 June 2025

Source: https://iccwbo.org/resources-for-business/incoterms-rules/incoterms-2020/

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Incoterms 2020 Simulator: Who bears costs & risk?

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Definition & Explanation

Transparent cost breakdown is the foundation of any reliable international freight quote. The total charge typically comprises base freight — rated by actual or volumetric weight, whichever is greater — fuel surcharges such as BAF or FAF, security and handling fees, customs clearance costs, and any applicable storage or terminal charges. The Incoterms agreed between buyer and seller determine which party bears each cost component at every stage of the journey. In ocean and air freight, port- or airport-specific levies such as THC or PCS add further variability depending on the routing. Undisclosed surcharges are among the most common causes of invoice disputes between shippers and forwarders, making full itemisation a professional standard rather than an optional extra.

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Compare IncotermsClarify duties, cost and riskOpen Calculate volumetric weightDetermine the chargeable weightOpen Calculate customs valueWork out import duties and customs valueOpen

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International Freight Charge Calculation

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air freight shipping

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