Berel
Get started
Charges

Origin Charges

Fees for services at origin, such as pickup, export clearance and terminal handling.

What is Origin Charges?

Origin charges are the costs incurred at the place of export before the main international carriage begins, such as pickup and pre-carriage, warehouse handling, export packing, export customs clearance, documentation, terminal handling at the port or airport of loading, security screening and, for sea freight, verified gross mass (VGM) services. They are separate from the main freight and from destination charges, and may be billed by the forwarder, the carrier, terminal operators or customs brokers. Who pays depends on the Incoterms rule, since articles A9 and B9 of each Incoterms 2020 rule list the costs each party bears: under EXW nearly all origin costs fall on the buyer, under FCA the seller pays up to delivery at the named place including export clearance, and under FOB the seller pays until the goods are on board. In US ocean trades, carrier and NVOCC charges, including origin surcharges, must be in a published tariff or in a service contract or rate arrangement. Since 1 July 2016, SOLAS has required the shipper to provide a verified gross mass before a packed container is loaded on a ship.

Why it matters for forwarders

Origin charges are a frequent source of disputes because they are billed by parties who were not part of the sale negotiation, for example when an FOB seller is invoiced terminal handling by the buyer's nominated forwarder. Quote origin charges line by line, state the currency and basis (per shipment, per container, per kg or per cubic metre), and identify which lines are third-party costs passed through. On collect shipments under FOB or FCA, origin charges are often billed locally to the shipper, so confirm in advance who pays each line. Missing documents, late VGM submission or incomplete export declarations lead to rolled bookings and extra storage or amendment fees. In US trades, a new or increased tariff charge cannot take effect earlier than 30 calendar days after publication, so check tariff effective dates before passing on new origin surcharges.

Origin Charges FAQ

Who pays origin charges under FOB?

Under FOB the seller bears costs until the goods are on board the vessel at the named port, which normally includes export clearance and loading-port handling. Because carriers and forwarders bill these charges in different ways, agree the split of terminal handling explicitly.

What are typical origin charges in sea freight?

Common items include pickup, export customs clearance, documentation or bill of lading fees, terminal handling charges, VGM, seal fees and, for LCL, CFS handling. Names and amounts vary by port and provider.

What is VGM and who provides it?

VGM is the verified gross mass of a packed container, required under SOLAS since 1 July 2016. The shipper must provide it, either by weighing the packed container or by weighing all contents and adding the container's tare mass, and a container without a VGM must not be loaded.

Who pays origin charges under EXW?

Under EXW the seller only makes the goods available at its premises, so the buyer bears virtually all origin costs, including loading, export clearance and terminal handling. Article B9 of the rule lists the buyer's costs.

Sources

  1. Incoterms® 2020, International Chamber of Commerce
  2. Resolution MSC.380(94): Amendments to SOLAS (verified gross mass), International Maritime Organization
  3. 46 CFR 520.8: Effective dates, Legal Information Institute, Cornell Law School

Rules and figures change. Check the current text with the issuing body before relying on it.

Let agents handle the paperwork behind these words.

Berel drafts house bills, checks invoices and tracks every milestone, with your team in control.