Views: 0 Author: Site Editor Publish Time: 2025-09-22 Origin: Site
If you frequently book full container load (FCL) space for sea freight, you must be familiar with the term "dead freight". Today, we will analyze this concept in detail.
I. What is "Dead Freight"?
Simply put, it is a cancellation fee, similar to the fees incurred when canceling a flight or train ticket. If you cancel within a certain period—usually a cutoff time before departure or immediately after booking for tickets—you will be charged a partial cancellation fee. In sea freight booking, the rules are similar: dead freight may be incurred immediately after the shipping company issues the space confirmation or within a specific period thereafter.
II. Why Does "Dead Freight" Exist?
The concept can be traced back to the COVID-19 pandemic period. Foreign trade professionals who experienced that time will remember the record-high sea freight rates—levels that may be hard to surpass in the future. Not only were freight rates abnormally high, but container space was also extremely tight; it was common to fail to secure space even when booking 2-3 weeks in advance.
In such a scenario, canceling space shortly before the booking cutoff could leave other cargo (that could have made the shipment) without enough time for processing, resulting in "unused space" (dead freight). Shipping companies, unwilling to see vacant space in a booming market, thus introduced dead freight.
In recent years, more shipping companies have launched "online booking" services with competitive freight rates. The low prices often attract a surge in bookings, increasing the probability of dead freight and the workload of handling cancellations and changes. To restrict such behaviors, dead freight is also imposed.
III. Key Notes
After a freight forwarder quotes, you can casually ask whether dead freight applies. Different shipping companies have different timelines for charging dead freight: some impose it immediately after booking confirmation, while others charge it a few days before departure or after the booking cutoff. These details must be clarified with your freight forwarder.
To avoid incurring dead freight, you must have a clear understanding of your order progress, such as:
Have you received payment for the goods?
What is the probability of the goods being completed on time?
Is there a possibility that the customer will temporarily appoint another freight forwarder?
Does the factory have available slots for container loading?
If dead freight applies—especially if the amount is substantial—you must review all milestones repeatedly, list all possible risks, and prepare contingency plans in advance. This will significantly reduce the chance of incurring dead freight.
