What affects the cost of sea freight?
The main factors are the trade lane, container size, time of year, the carrier and service, fuel and other surcharges, origin and destination charges, and UK haulage. The headline ocean rate is often only around half to two-thirds of the total door-to-door cost.
Sea freight quotes can be confusing. Two quotes for the same container can differ by hundreds of pounds, and the cheapest headline rate isn't always the cheapest in the end. This guide explains what goes into a sea freight price, what makes it go up and down, and how to compare quotes properly.
What's in a sea freight quote
- Ocean freight (base rate)
- £1,500
- Fuel and low-sulphur surcharges
- £250
- EU emissions surcharge (where the service calls at EU ports)
- £60
- UK terminal handling and port charges
- £300
- Delivery order, documentation and admin
- £80
- Customs clearance (entry)
- £85
- Container haulage to the Midlands
- £650
- Door-to-door total (before duty and VAT)
- £2,925
Illustrative figures only, to show the structure of a quote. Rates move weekly with the market. Under FOB terms your supplier pays the costs in China, and under EXW you'd pay those too.
In this example the ocean rate is only about half the total. That's why comparing quotes on the ocean rate alone can be misleading.
The main factors
1. The trade lane and the market
Each route has its own supply and demand. Asia–Europe rates react quickly to changes in capacity, which is why they rose sharply when carriers diverted around Africa from late 2023, and why the return to the Suez Canal through 2026 is adding capacity and putting downward pressure on rates. Backhaul routes, where ships return emptier, are usually cheaper.
2. Container size and type
A 40ft rarely costs twice as much as a 20ft, so per cubic metre larger containers are cheaper. Reefers, open tops and flat racks cost more, and so does hazardous cargo.
3. Time of year
Rates and surcharges usually rise before Chinese New Year and through peak season from July to October. Carriers often add peak season surcharges (PSS) and general rate increases (GRIs) at these times.
4. Carrier and service
A fast, direct service usually costs more than a slower transhipment service. Some carriers are consistently cheaper on certain lanes, and reliability varies too.
5. Surcharges
| Surcharge | What it covers |
|---|---|
| BAF / bunker surcharge | Changes in fuel prices |
| LSS / low-sulphur surcharge | The cost of lower-sulphur fuel required in emission control areas |
| ETS surcharge | Carriers' costs under the EU Emissions Trading System on voyages to and from EU ports |
| PSS / peak season surcharge | Added during busy periods |
| CAF / currency adjustment | Exchange rate swings, as most ocean freight is priced in US dollars |
| War risk or emergency surcharges | Added when routes face security risks |
See our guide to surcharges on a sea freight quote for more detail.
6. Origin and destination charges
These include terminal handling (THC), documentation, delivery order fees and port security charges. They're charged at each end and are often where quotes differ most. Read more about destination charges.
7. UK port and haulage
Your choice of UK port and the distance to your warehouse can change the total by hundreds of pounds. See which UK port to use.
8. Contract or spot
Regular shippers can agree contract rates for a period, which gives predictable costs but can end up above the market when rates fall. Spot rates follow the market up and down. Many importers use a mix of both.
9. Your Incoterm
Under FOB or FCA you control and pay for the main freight. Under CIF or CFR your supplier books it, but you may face high destination charges you don't control. Read FOB vs CIF.
Why sea freight rates change so quickly
Container shipping is a market with little spare capacity in the short term, so small changes in supply or demand move prices sharply. New ships coming into service, carriers cancelling sailings, a route being closed or reopened, port congestion, and seasonal demand all feed through to rates within weeks. That's why a quote is usually only valid for a short period, and why booking at the right time can matter as much as choosing the right carrier.
How to compare sea freight quotes
- Compare the door-to-door total, not just the ocean rate
- Check what's excluded, such as customs, haulage, insurance or destination charges
- Check the validity. Ocean rates are often only valid for the sailing dates or half-month quoted
- Ask for the transit time and routing, direct or transhipment
- Check the free time included at destination
- Make sure surcharges are included or listed, not left as 'subject to'
How we can help
We give you clear, all-in door-to-door prices, tell you the routing and free time, and flag when the market is about to move so you can book at the right time. Get a deep sea freight quote, or read how to reduce your freight costs.
Written by the 365 Freight team · Last reviewed . General guidance only, so check the specifics for your shipment.