How to Read a Freight Invoice

A freight invoice is rarely just one line. A typical China → US ocean invoice has a dozen or more charges, each with its own three-letter acronym. This guide walks through every line you are likely to see, what it actually means, and which ones are worth pushing back on. The specific amounts vary by carrier, lane and season — the goal here is to help you recognise every line, not to quote a rate.

The structure of a freight invoice

Every freight invoice follows the same shape:

• Base freight — the per-CBM, per-kg or per-container rate.
• Origin charges — handling at the export port or airport.
• Destination charges — handling at the import port or airport.
• Surcharges — fuel, currency, security, peak season.
• Customs & documentation — entry filings, BL fee.
• Inland delivery — trucking from port to your door.

Ocean freight invoice — line by line

Base ocean freight

Quoted per CBM for LCL, per container for FCL. Verify the CBM number on the invoice matches what you calculated from the packing list — plug the dimensions into the CBM Calculator and check.

BAF — Bunker Adjustment Factor

A fuel surcharge that floats with oil prices. Recalculated periodically by the carrier and applied on top of base freight. Non-negotiable but worth understanding.

CAF — Currency Adjustment Factor

Compensates the carrier for USD/local currency fluctuations on lanes where the base freight is quoted in one currency and costs are paid in another.

THC — Terminal Handling Charges

Charged at both origin and destination ports for crane and yard moves. Quoted per container or per CBM. THC rates are published in each terminal's tariff and vary widely between ports.

ISPS — International Ship and Port Facility Security

A flat security fee mandated worldwide under the ISPS Code, applied per container.

AMS / ENS / ACI

Manifest filings before arrival — AMS for the US, ENS for the EU, ACI for Canada. Charged per Bill of Lading and required by law before the vessel is loaded at origin.

BL fee / Documentation

Charged to issue the Bill of Lading. One per shipment, not per container. Should not appear a second time on the same invoice as "Documentation".

Container Cleaning / Repair / Telex

Small accessorial fees. Container cleaning should only apply when you returned a dirty container. Telex release adds a fixed carrier fee if you request electronic release instead of surrendering an original BL.

Detention & Demurrage

Only shows up if you exceed the free days. Demurrage is the port charge for keeping the container at the terminal; detention is the carrier's charge for keeping their box at your warehouse. Per-diem rates are published in the carrier's tariff and escalate the longer you go over free time.

Air freight invoice — line by line

Base air freight

Quoted per chargeable kg, where chargeable weight = max(gross weight, CBM × 167). Run the math with the Volumetric Weight Calculator before you accept the invoice number.

Fuel Surcharge (FSC)

A per-kg fuel surcharge, often the second-largest line on the invoice. Airlines publish the rate monthly.

Security Surcharge (SSC)

A per-kg security surcharge that has applied to all air cargo since 9/11-era screening rules were introduced.

Airport Handling / Terminal

Per-kg terminal handling at origin and destination airports, usually with a minimum flat fee.

Customs entry

A flat brokerage fee for filing the customs entry at destination. Charged once per shipment regardless of size.

How to sanity-check an invoice

• Recalculate CBM and chargeable weight from the packing list before you look at the totals.
• Confirm the base rate line matches the rate you were quoted, and that the unit is right (per CBM vs per container).
• Cross-check every acronym against the forwarder's original quote — any surcharge that was not in the quote should be questioned.
• For detention or demurrage, ask for the gate-out and gate-in timestamps and count the free days yourself.

Lines worth pushing back on

• BL fee — sometimes waived on contract rates.
• Documentation — should not appear twice (BL fee already covers it).
• Container cleaning — should only apply when you returned a dirty container.
• Telex release — a fair charge, but ask whether it is already included in your contract rate.
• Wrong CBM or chargeable weight — the biggest source of overcharges. Always recalculate.