What are origin and destination charges?

If you are shipping 'from port' or 'to port' rather than 'door-to-door', you'll need to determine whether you're paying the fees that apply to port handling.

The origin and destination charges you're required to pay will depend on the point of ownership of the goods transferred from the Seller to the Buyer (see: Incoterms).

Origin Port Charges (when the origin is a port)

Suppliers often suggest shipping your goods Free on Board (FOB). That means that the supplier (ie, the factory) is responsible for your goods until they are loaded onto the vessel at the port of origin and will handle all related charges until that point.

When you are shipping loose cargo (ie, not a full container), your goods must go through a Container Freight Station (CFS) to be consolidated into a container.

You must communicate with your supplier to see whether they are covering those charges since they are not always included in an FOB agreement.

If not, you should keep the option of including port charges checked yes, so that there is no delay later on.

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

Destination Port Charges (when the destination is a port)

Two other common shipping options/Incoterms are Cost and Freight (CFR) and Cost, Insurance, and Freight (CIF), which means that the seller covers all of the costs at the origin plus the international freight charge. The responsibility for the goods only shifts to the buyer once the goods arrive at the destination port.

At the destination port, your LCL shipment must once again pass through a CFS, but this time to be deconsolidated from the container.

If you are the supplier (factory/exporter), be sure you have clearly communicated with the buyer of goods (importer) as to who is covering these charges.