Your forwarder's surcharges have rules too.

Many small importers do not book directly with a shipping line. They book with a forwarder that acts as an NVOCC, and the price is set in a short written quote or rate agreement. Then the invoice arrives with extra lines: a peak season surcharge, a fuel adjustment, a "pass-through" charge from the carrier.

Those extra lines are not unlimited. If the shipment moved under an NVOCC negotiated rate arrangement, the FMC rules in 46 CFR Part 532 set clear limits.

First, what kind of deal did you have?

The rules depend on how the rate was set.

• NVOCC negotiated rate arrangement (NRA). A written, binding arrangement between you and a licensed NVOCC for specific transportation at a stated rate (532.3). This is common for small importers using a forwarder.
• Published tariff rate. A rate the carrier or NVOCC publishes in its tariff.
• Service contract or NVOCC service arrangement. A negotiated contract, where the contract's own terms control.

This article covers the first two. For a service contract, the answer is in the contract itself.

Under an NRA: the surcharge rules

An NRA must state the rate and terms clearly, and the shipments they apply to (532.5(d)(1)). If the rate is not all-in, the NRA must say whether extra surcharges, assessorial charges or carrier general rate increases will apply (532.5(d)(2)(i)).

The NRA can list those surcharges itself, or point to surcharges in the NVOCC's rules tariff (532.5(d)(2)(ii)). The NVOCC must give the public free electronic access to that rules tariff (532.4).

Then two limits apply:

• 1. Surcharges taken from the rules tariff are fixed. Once the NVOCC has received the first shipment under the NRA, those surcharges and their amounts must stay fixed until the last shipment is delivered, unless the NRA is amended (532.5(d)(2)(iii)).
• 2. Amendments only look forward. An NRA can be amended after the first shipment, but the change only applies to shipments the NVOCC has not yet received (532.5(e)).

Pass-through charges: no markup

Some charges are passed through from the carrier or another provider. If the NRA or the rules tariff does not state a specific amount for a pass-through charge, the NVOCC may invoice only the charge it actually incurred, with no markup (532.5(d)(2)(iv)).

So if a pass-through line on your invoice has no set amount in your arrangement, it should match what the forwarder was actually billed.

Under a published tariff: the 30 day rule

If your shipment moved on a published tariff rate rather than an NRA, different rules apply. A tariff change that increases your cost cannot take effect sooner than 30 days after it is published (520.8). And the rate that applies is the one in effect on the date the carrier received your cargo (520.7(c)).

These two tariff rules do not apply to NRAs, which are exempt from them (532.2). This is why it matters to know which kind of deal you had.

How to check one

• 1. Find your arrangement. Pull the quote, email or rate agreement for the shipment.
• 2. Note when the first shipment was received. For an NRA, surcharges from the rules tariff are locked from that point.
• 3. Compare each surcharge line with the arrangement. A surcharge that rose during the arrangement, with no amendment, is worth questioning.
• 4. Check pass-through charges with no set amount. Ask for the underlying charge. It should match what the forwarder was actually billed.
• 5. For tariff shipments, check the dates. Compare the effective date of any increase with the date your cargo was received.

If the forwarder will not fix it

The FMC's Charge Complaint process accepts complaints about a broad range of charges assessed by common carriers, and an NVOCC is a common carrier. For surcharges, the FMC's special burden of proof on the carrier does not apply. That burden is specific to demurrage and detention charges.

Want a second look?

If a surcharge or pass-through line on a forwarder invoice does not match what you agreed, send me the invoice and your rate agreement. I will check them against these rules and tell you plainly what I find.

Related: How to dispute demurrage charges

This article is a plain summary of published rules, not legal advice.