Fair remuneration of Freight Forwarders Services

At this year’s FIATA World Congress in Moscow it has been pointed out that freight forwarders and logistics service providers offer more and more services to their clients in order to facilitate world trade and the supply chain.

More and more specialized tasks and responsibilities are assumed by freight forwarders which makes them the transport organizers “par excellence. Hence, freight forwarders claim a fair remuneration for their interventions and responsibilities. In many cases this is based on the level of the ocean freight rates. However, compensations have been eroded due to the fact that surcharges are not included in the ocean rates.

FIATA feels that surcharges that have a permanent character, such as BAF (Bunker Adjustment Factor) and CAF (Currency Adjustment Factor) must be included in the ocean freight since they do not respond to the idea of a surcharge which is by definition not permanent. FIATA calls upon shipping lines, shipping agents (and terminal operators) to reconsider the system of surcharges with questionable names and purposes (Import Administration fee, Peak Season Surcharge, Original Surcharge, Administrative ISPS-add on surcharge) charged to freight forwarders, and to include them in the rates or to absorb them themselves. Indeed, clients of freight forwarders are often not prepared to remit these additionals to freight forwarders. In some cases, e.g. ISPS, they should be considered as normal operational costs of a terminal.

FIATA also asks for transparency and justification of these extra charges, which could

08 November 2005

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