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What are the fees for CIS and PCS in shipping?

Views: 25     Author: Site Editor     Publish Time: 2022-10-20      Origin: Site

What is Container Inbalance Charge?

Container Inbalance Charge (CIC), this charge can be understood as the shipping company's return container fee.


CIC refers to the fact that after the peak season, due to the huge export volume of China, there is a shortage of containers. A large number of containers must be returned to China to occupy part of the space. The cost of this part of the space is borne by the shipping company. In order to reduce losses, the shipping company proposed CIC surcharge, charged for customers.


For example, shipping companies have started to levy CIC fees on Southeast Asian routes one after another. Since China exports more goods to Southeast Asia and imports less goods from Southeast Asia to China, shipping companies ship from China to Southeast Asian ports with more containers of loaded goods. There are few containers of loaded goods shipped back to China from Southeast Asia, which means that the containers are out of balance. There are many empty containers that need to be shipped back to China from Southeast Asia. The operating cost of the shipping company will naturally increase, and the shipping company will pass on this cost. On the head of the consignor, CIC was born. However, the dates for the implementation and activation of CIC fees vary by shipping companies. The general CIC fee collection standard is RMB300/TEU.


look behind it,


1. Seasonal changes in cargo transportation on liner routes around the world lead to unbalanced cargo flow


Western countries are usually the off-season for cargo transportation at the beginning of the year. The volume of boxes gradually increases in April and May, and the trade volume begins to increase. Before Christmas, there will be a small climax of the increase in trade volume.


2. The trade volume between countries or regions at both ends of the route is unbalanced


East Asian countries such as China export far more goods to Europe than are imported from Europe to China and other East Asian regions, and the Far North American routes also have similar significant problems.


3. Differences in the type and nature of import and export goods, as well as the standards for freight and handling charges, also cause the imbalance of import and export containers.



What is Port Congestion Surcharge?

Port Congestion Surcharge (PCS), it is the carrier (usually refers to the shipping company) to make up for the long-term berthing of the ship after arriving at the port due to port congestion, waiting for the unloading terminal to extend the sailing period, resulting in an increase in the shipping company's transportation cost to the cargo party. surcharge charged.


This surcharge is constantly adjusted according to port congestion. It can even be cancelled. In some ports, this surcharge is as high as 300% of the basic freight. Therefore, when determining the export price and calculating the freight, it is necessary to find out the surcharges related to the port, otherwise the price of the goods will not be enough to pay the freight. result.


The provision of port congestion surcharge is to avoid the loss of shipping schedule to shipping companies due to port congestion that affects the speed of ship turnover. Generally, it should be stipulated in the contract: "If the ship levies the port congestion surcharge, it shall be borne by XX; and this point shall be stipulated in the relevant letter of credit, and the amount can be overrun with proof."


Collection of port congestion surcharge: port congestion surcharge is a temporary surcharge, which is highly variable, and it is adjusted with changes in port congestion; if the port returns to normal, the surcharge will follow. And cancel.


If the port congestion surcharge has been charged in the prepaid freight, the collected port congestion surcharge will not be refunded regardless of the congestion situation at the discharge port. PCS is generally used by some ports in Israel, India and Central and South America routes. Usually charged by cabinet, and the billing currency unit is USD.

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