These seven freight facts routinely surprise new shippers and cost unprepared companies thousands of dollars a year. Learn them before your first international shipment.
1. Chargeable Weight Isn't Actual Weight
Air freight pricing uses the greater of actual weight (kg) or volumetric weight (L x W x H in cm / 6000). A box of pillows might weigh 2 kg but ship as 50 kg. Dimensional weight rules apply to all major carriers and are strictly enforced.
2. Demurrage and Detention Pile Up Fast
Demurrage = container sitting at the terminal past free time. Detention = container held by the consignee past free time. Rates run $150-500 per container per day and are rarely waived. Plan customs clearance and trucker pickup before the container even lands.
3. Incoterms Define Risk, Not Just Who Pays
EXW doesn't just mean "buyer pays freight." It means risk transfers to the buyer at the seller's warehouse — before the goods even move. If the carrier damages the container en route, EXW makes it the buyer's claim. Choose Incoterms deliberately.
"FOB" on a quote means nothing without a named port. "FOB Shanghai" and "FOB Qingdao" are different contracts.
4. Peak Season Surcharges Are Real
From August to October (Asia-to-US peak) and before Chinese New Year, carriers add GRIs (General Rate Increases) and PSS (Peak Season Surcharges) that can double the base rate. Lock pricing with contract rates before peak if your volume justifies it.
5. Customs Bonds Have Tiers
If your annual US duties exceed $50k, you need a Continuous Customs Bond rather than Single Transaction Bonds. The savings are substantial, and bond sufficiency is reviewed annually by CBP — underbonded importers face shipment holds.
6. HTS Classification Is Your Responsibility
Even if your broker files the entry, you are legally responsible for the HTS code. Misclassification — even unintentional — can trigger retroactive duty collection going back five years, plus penalties. Get binding rulings on borderline items.
7. Marine Insurance Isn't Automatic
Carriers have limited liability under COGSA (ocean) and the Montreal Convention (air). Typical compensation is a few hundred dollars per package, regardless of actual value. All-risk cargo insurance costs 0.1-0.3% of insured value and is almost always worth buying.
Bonus: FTAs Can Zero Out Duty
Free trade agreements (USMCA, EU-UK TCA, CPTPP, etc.) can reduce duty to zero if the product qualifies under the rules of origin. The paperwork is non-trivial but the savings can be enormous — up to 25% of product value on apparel, for example.
Global 3PL