What makes up the price of a shipment from China
A freight quotation rarely announces the final figure. Between the rate quoted and the invoice sit a counter-intuitive pricing rule and a series of surcharges that do not always appear in the opening offer. Here is what the bill really contains.
Updated September 2026
The weight that counts is not the one on the scales
Freight charges the higher of two figures: actual weight and volumetric weight, calculated from the space occupied. Light, bulky goods are therefore taxed on the room they take up, not on what they weigh.
The consequence is direct: on low-density products — plastics, textiles, flat-packed furniture, packaging — the packing weighs more on shipping cost than a discount wrung from the unit price. A better-dimensioned carton, a product shipped knocked down, a revised dunnage: these trade-offs are made before production, not when booking.
It is also why a supplier that optimises its packing saves you twice — on freight, and on the number of pallets to handle on arrival.
The surcharges that do not appear in the quotation
A quoted freight rate covers moving the container. It does not cover everything else, invoiced separately and often absent from the opening offer:
- THC — terminal handling charges, due at both origin and destination, set by the terminal and not by the carrier
- BAF — bunker adjustment factor, indexed to fuel prices and revised periodically
- ISPS — port security fee
- Documentation fees — issuing the bill of lading and transmitting customs data
- Deconsolidation charges, in groupage, to separate your lot from the others on arrival
- Onward carriage — from the port to your warehouse, rarely included
The question to put to a freight forwarder is therefore not « what does the freight cost » but « what is the total landed amount, all surcharges included ». Two offers can only be compared at that level.
When a full container becomes cheaper
Groupage is charged by volume; a full container, at a flat rate. There is therefore a point at which the second becomes cheaper than the first, even though you do not have enough to fill it.
That threshold is not fixed: it depends on the groupage rate of the moment, the port pair and the season. It shifts sharply on the approach to Chinese shutdowns, when demand for groupage saturates.
Two advantages of the full container do not show in the price. It is opened only at destination, which removes a risk of damage and of mixed-up lots. And your lead time no longer depends on other shippers': in groupage the container leaves when it is full, and a deconsolidation delay on arrival touches everyone.
The charges that run after arrival
These are the most avoidable, and they mount fast. Two meters run, depending on where the container is: demurrage while it waits on the quay past the free period, detention charges once it has left without being returned to the carrier.
Both are counted per day and per container, and often start while an incomplete documentary file is being put right — a customs identifier applied for too late, an invoice whose description does not permit classification, an original bill of lading still in the post.
In other words, the best saving on freight is not made by negotiating the rate, but by presenting a file that does not get held up.
Frequently asked questions
- What is volumetric weight?
A theoretical weight calculated from the space the goods occupy, which freight compares with actual weight and charges on whichever is higher. Light, bulky goods are therefore charged on the room they take up. That is what makes packing decisive on low-density products.
- What do THC and BAF mean on a freight invoice?
THC are terminal handling charges, due at origin as well as destination and set by the terminal rather than the carrier. BAF is the bunker adjustment factor, indexed to fuel prices and revised periodically. Neither is included in a freight rate quoted on its own.
- How do I compare two freight quotations?
By reducing them to the total amount landed at destination, all surcharges included, and for the same incoterm. A bare freight rate compares with nothing: depending on what it includes or excludes — terminal handling, security, documentation, deconsolidation, onward carriage — the final gap between two apparently similar offers can exceed half the amount.
- At what volume does a full container become worthwhile?
There is no fixed threshold: it depends on the groupage rate of the moment, the port pair and the season, and shifts markedly on the approach to Chinese shutdowns. The comparison has to be redone for each shipment. At comparable prices, the full container keeps two advantages: it is opened only at destination, and your lead time does not depend on other shippers'.
- What is demurrage?
A daily billing triggered when the container sits too long on the quay, with a twin — detention charges — once it has left without being returned. What makes them avoidable: they almost always start during the correction of an incomplete file. An EORI number obtained before arrival, and an invoice whose description allows classification, are usually enough never to see them.
- Is the freight price from China stable?
No. Rates move constantly with available capacity, demand, fuel prices and the season. They rise sharply before Chinese shutdowns, when shipments are brought forward. Any figure found online should be treated as dated: only a quotation of the moment commits anyone.
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