You bought CIF Felixstowe. You expected freight to be included. Then the freight forwarder emailed you an invoice for £850 in "destination charges" before they'd release the container. What just happened, and how do you avoid it next time?
Almost every international sea freight shipment picks up a set of local charges at the UK end. Some are legitimate costs of physically handling the container at Felixstowe or Southampton — cranes lift it off the ship, the terminal charges for that. Some are administrative — the shipping line's documentation and release process. Some are statutory — port health for food, DEFRA for plants and wood. And some are the freight forwarder's own service fee for clearing the container through customs.
None of these is a scam. The problem is that under Incoterms like CIF and CFR, the seller pre-pays the ocean freight to the port of discharge — but not the local charges at that port. So the buyer is left holding an invoice they didn't expect, from a party (the shipping line's UK agent or the nominated forwarder) they didn't choose.
Understanding what each charge is, and what causes them, is how you stop being surprised — and how you decide whether to buy on FOB terms instead so you control the whole cost chain from the ship's rail forwards.
The fee the shipping line pays the port terminal to lift the container off the vessel and place it in the container yard, plus the reverse (loading the empty back onto a vessel for the return leg). The line then charges this to whoever the "destination" side of the freight is. On CIF and CFR, that's the buyer. On DAP or DDP, the seller pays it.
Typical range: £220–£320 for a 40', £160–£240 for a 20'. Every port has its own tariff.
The shipping line's charge for issuing the delivery order and processing the release. Sometimes called "B/L release fee" or "arrival notice fee". Typical range: £60–£120 per shipment.
A small statutory security charge collected by the terminal and the shipping line. Typical: £15–£40 per container.
Only applies to certain goods:
Charges vary by product and whether physical inspection is required. Costs can range from £50 for a documentary check to several hundred pounds if the container is moved to a Border Control Post.
Your forwarder or clearing agent's fee for preparing and submitting the import entry to CDS. Typical range: £45–£90 per entry. Rises for complex entries with multiple HS lines, transit under T1, or licence-controlled goods.
Not really a "destination charge" but often paid at the same time. Duty is on the customs value at the applicable UK Global Tariff rate for the HS code. Import VAT is 20% on customs value + duty + inland freight. Most VAT-registered businesses use postponed VAT accounting so VAT doesn't hit cashflow at the border. Estimate with our Import VAT Calculator.
The trucking cost from Felixstowe (or Southampton, London Gateway, etc.) to your yard. Depends on distance, container size, and whether the driver has to wait to unload. Typical: £350–£700 for a 40' to somewhere in the Midlands, more for longer runs or awkward drops. Book early — driver availability is the tighter constraint than paperwork.
Two separate charges, often confused:
These run at £40–£120 per day and per container and escalate. Guide: How to avoid demurrage on UK imports.
Applies to LCL (part-container) shipments where the goods are deconsolidated at a container freight station. Storage is charged per pallet or per CBM per day after free time expires (usually 3–5 working days). Not the same as demurrage — this is the CFS operator's charge, not the shipping line's.
Sometimes ambushed into the destination invoice. CAF (currency adjustment factor), BAF (bunker adjustment factor), and PSS (peak season surcharge) are ocean-freight-related but occasionally not included in the seller's "prepaid" freight and passed to the buyer.
The Incoterm on your contract decides who is responsible for each charge. This is why the Incoterm matters — not because "CIF sounds professional" but because it moves real money.
| Charge | EXW | FOB | CFR / CIF | DAP | DDP |
|---|---|---|---|---|---|
| Origin export clearance | Buyer | Seller | Seller | Seller | Seller |
| Ocean freight | Buyer | Buyer | Seller | Seller | Seller |
| Marine insurance | Buyer | Buyer | Seller (CIF only) | Buyer | Buyer |
| UK THC / doc fee / ISPS | Buyer | Buyer | Buyer | Seller | Seller |
| UK customs clearance | Buyer | Buyer | Buyer | Buyer | Seller |
| UK import duty & VAT | Buyer | Buyer | Buyer | Buyer | Seller |
| UK haulage to your yard | Buyer | Buyer | Buyer | Seller | Seller |
The trap in CIF and CFR: the seller pre-pays the ocean freight only. Everything else at the UK end is on you — even though the paperwork made it look like "shipping was included".
A Chinese supplier will happily quote CIF Felixstowe because it lets them:
You end up paying twice — once in the CIF price, once in destination charges — with no visibility into what's on either side of the invoice. This is why experienced buyers prefer FOB or FCA: you keep control of the freight leg, choose your own UK forwarder, and see every cost line.
This guide is educational only. Rates and charges are illustrative and vary by port, shipping line, forwarder and market conditions. Not legal, tax, customs brokerage or insurance advice.