What is Peak Season Surcharge?
Peak Season Surcharges (PSS) refer to temporary surcharges that major shipping carriers will apply to their base rate to cover increased operational costs during periods of high demand. Most surcharges take the form of a flat fee applied per package and can differ widely between carriers.
Why is there a Peak Season Surcharge?
Peak Season Surcharge is a variable surcharge imposed on shippers during the peak season. Yearly, there is a rise in transport demand between June 1 and 31 October, from the Far East to the West. For this reason, carrier companies levy an additional fee on top of the base rate for every transport.
What is a surcharge?
A surcharge is an additional charge, tax, or payment that a company adds to the already existent cost of a good or service. Many industries, including travel, telecom, and cable, will add surcharges to offset the cost of higher prices, such as fuel, or regulatory fees imposed by the government.
What is a low Sulphur surcharge?
Low Sulphur Surcharge is a surcharge levied by the lines to cover the costs associated with using low Sulphur fuel in line with the IMO 2020 Sulphur Cap regulation. The conventional fuel in shipping is heavy fuel oil, and the sulfur content is usually between 1.0% and 3.5%.
What is war risk surcharge?
This is a supplementary carrier charge, that is only applied when insurance underwriters designate specific zones as war risks. The surcharge is levied to recover potential extra costs, such as re-routing or additional security. …
Is a surcharge a fee?
A surcharge is an extra fee, charge, or tax that is added on to the cost of a good or service, beyond the initially quoted price. Often, a surcharge is added to an existing tax and is not included in the stated price of the good or service.
Are surcharges legal?
On 25 February 2016 the Competition and Consumer Amendment (Payment Surcharges) Act 2016 became law. A business is not required to impose a payment surcharge, but if it chooses to then it is only allowed to pass on to the customer the costs that the business was charged for accepting payment of that payment type.
Who will pay LSS fee?
But any surcharge payable to the shipping company as mentioned above is bundled with the freight. In the table below freight is denoted as Main transportation. Therefore, when LSS is a surcharge collected by the shipping companies along with the freight, it falls upon the buyer to bear the cost under FOB terms.
What is BAF CAF charges?
BAF means Bunker Adjustment Factor and CAF means Currency Adjustment Factor. BAF and CAF are generally used by sea shipping carriers. These are charges which levied along with ocean freight to different locations at different season.
What does BAF mean in shipping terms?
Bunker Adjustment Factor
BAF is the abbreviation for Bunker Adjustment Factor. The term “Bunker” refers to the Fuel that is used to operate ships. The ship operator is responsible for the payment of these bunkers to the bunker supplier.
What is LSS in shipping?
Low Sulphur Surcharge is a surcharge levied by the lines to cover the costs associated with using low sulphur fuel in line with the IMO 2020 Sulphur Cap regulation..
Are surcharges illegal?
Note: California has a law, California Civil Code section 1748.1, that prohibits retailers from adding a surcharge when a consumer chooses to use a credit card instead of paying by cash. In March 2015, a federal court found the statute unconstitutional and prohibited the Attorney General from enforcing it.