What is LSS fee in shipping?

What is LSS fee in shipping?

Known by many names, the Low Sulfur Surcharge (LSS), Low Sulfur Bunker Surcharge, or Low Sulfur Fuel Surcharge (LSF), stems from an International Maritime Organization (IMO) regulation initially agreed upon in 2012 to reduce the amount of sulfuric fuel emissions being burned by cargo vessels near ports and populated …

What is BAF and LSS?

BAF = Bunker Adjustment Factor. LSS = Low Sulphur Fuel Surcharge.

What is IMO surcharge in shipping?

When transporting goods classified by the UN as hazardous (in accordance with the IMDG code), the shipping company imposes a surcharge on the sea freight. This relates to the additional handling required for planning the goods at the terminal and onboard the ship.

What is EIS in shipping?

Emergency Imbalance Surcharge. In the case of multiple ports of destination, the amount of inbound cargo exceeds the amount of outbound cargo, as a result of which the shipping companies are faced with large quantities of empty containers on the quayside, which are no longer used for export.

Who will pay LSS fee?

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 LSS in logistic?

LSS is the abbreviation of the first letters of the English term Low Sulfur Surcharge, which means an additive for low-sulfur fuel. Behind the same concept are LSF (Low Sulfur Fuel Surcharge) and other shortcuts given by different shipping lines.

What is BAF and CAF in sea freight?

BAF means Bunker Adjustment Factor and CAF means Currency Adjustment Factor. How to distinguish between CAF and BAF? 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 is low sulphur fee?

This means sulphur fuel oil must be reduced from 3.50% to 0.50%, on top of the 0.10% sulphur limit already enforced in Emission Control Areas (ECA). The aim of the Low Sulphur Regulation is to reduce the amount of SOx emissions worldwide and minimise adverse effects on human health and the environment.

What is a BAF charge?

What is the Bunker Adjustment Factor? Bunker Adjustment Factor or BAF is an additional surcharge levied on the ship operators to compensate for the fluctuations in the fuel prices. It was imposed to make up for the extra charges incurred during the shipment of goods.

What is CISF in shipping?

CISF. China Import Service Fee. This is a hidden cost that can arise when goods are sent using CFR or CIF shipping terms. It’s not easy to pin down exactly what it’s paying for or who it’s going to but it can arise when the shipper pays a very low amount for the freight at origin.

What are EBS shipping charges?

EBS (Emergency Bunker Surcharge) is implemented by carriers to further cover the cost of rising fuel prices. EBS is implemented on top of BAF (Bunker Adjustment Factor) once fuel (bunker) prices have risen so high that carriers begin to lose profits (i.e. the “emergency”).

What is IMO CFS?

IMO 2020 is a regulation to reduce the amount of sulfur oxide, a harmful pollutant, that ships are permitted to emit. Starting January 1, 2020, ships must use low sulfur fuel oil (LSFO) or have scrubbers installed to remove sulfur from the ship’s exhaust.

What is VGM charge?

Verified gross mass (VGM, for short, sometimes referred to as verified gross weight) is the combined weight of an ocean shipment’s cargo, dunnage and bracing (material used to keep cargo in position in a ship’s hold), plus the tare weight of the container.

What is seasonal surcharge?

What are peak season surcharges? 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.

What does CFS stand for shipping?

CFS (Container Freight Station) refers to a warehouse where goods belonging to various exporters or importers are consolidated (grouped) or deconsolidated (degrouped) before being exported or after being imported.