What Are Origin and Destination Charges?

If you're shipping 'from port' or 'to port' instead of choosing 'door-to-door', you need to figure out who's paying for port handling fees.

The origin and destination charges you'll pay depend on when the Seller transfers ownership of the goods to the Buyer.

Suppliers often suggest shipping your goods Free on Board (FOB). That means the supplier—usually the factory—handles your goods until they're loaded onto the vessel at the origin port and covers all charges up to that point.

If you're shipping loose cargo (not a full container), your goods have to go through a Container Freight Station (CFS) to get consolidated into a container.

Talk to your supplier to confirm whether they're covering those charges. They're not always included in an FOB agreement, and it's easy to overlook that detail.

If they're not covering those fees, you should keep the option of including port charges checked 'yes'. That way, you won't run into delays later.

Afterward, your responsibility for FOB starts with the overseas transportation. Your quote will include the freight cost, bill of lading fees, unloading cargo at the arrival port, and moving the cargo to its final destination.

Two other common shipping options—Cost and Freight (CFR) and Cost, Insurance, and Freight (CIF)—mean the seller pays for all costs at the origin plus the international freight charge. The buyer only takes responsibility once the goods arrive at the destination port.

At the destination port, your LCL shipment has to go through a CFS again, but this time for deconsolidation from the container.

If you're the supplier (factory/exporter), make sure you've clearly communicated with the buyer (importer) about who's covering these charges. It's not always obvious, and a little clarity upfront saves a lot of hassle later.