What these surcharges are
Ocean freight pricing has a base rate and then everything else. The base rate is the per-container charge for moving your box from port to port. The surcharges sit on top of it and adjust for conditions the base rate does not cover. Three surcharges matter most in practice:
- General Rate Increase (GRI). A flat increase to the base rate that a carrier announces with a few weeks' notice. GRIs are not tied to a specific cost input. They are a market-driven tool the carrier uses when it believes demand supports a higher rate. Carriers can announce multiple GRIs in a single quarter, and they often do during peak season.
- Peak Season Surcharge (PSS). A temporary charge applied during high-demand periods, typically the months when retailers are shipping inventory for the holiday season. Unlike a GRI, a PSS is explicitly seasonal and has a defined start and end date, though carriers frequently extend or revise it.
- Bunker Adjustment Factor (BAF). A fuel surcharge that adjusts for the cost of marine fuel. BAF is reset periodically, usually quarterly, based on published fuel price indices. When fuel prices rise, BAF rises with them. The July 2026 quarterly reset pushed BAF up on many trades.
They stack, not replace
GRI, PSS, and BAF are not alternatives. They are additive. A single shipment in peak season can carry a GRI on top of the base rate, a PSS on top of the GRI, and a BAF on top of both. That is why the gap between a quoted base rate and the actual invoice can be so large. Always ask for the all-in cost, not just the base.
Other surcharges you will see
Beyond GRI, PSS, and BAF, your invoice will typically include some or all of the following:
- Terminal Handling Charge (THC). Charged at both origin and destination for loading and unloading containers at the port terminal.
- War Risk Surcharge (WRS). Applied on routes that pass through or near conflict zones. In 2026, the Red Sea diversions around the Cape of Good Hope carry WRS on many Asia-Europe and Asia-Mediterranean services.
- Currency Adjustment Factor (CAF). Compensates the carrier for exchange rate fluctuations when freight is quoted in one currency but the carrier's costs are in another.
- Low Sulphur Surcharge (LSS). Covers the cost of compliant low-sulphur fuel mandated by the IMO 2020 regulation.
- Congestion Surcharge. Applied when a specific port is congested, compensating the carrier for delays and the cost of ships waiting at anchor.
- Equipment Imbalance Surcharge (EIS). Charged when there is a shortage of empty containers at the origin port, reflecting the cost of repositioning equipment.
What happened in 2026
The 2026 peak season arrived early. Retailers and importers began front-loading inventory in May and June, pulling shipments forward to beat potential tariff changes and to avoid the capacity crunch they expected later in the summer. Carriers responded by implementing GRIs and PSS earlier than the traditional July start, with some lines applying surcharges as early as mid-May.
By mid-July, Asia to US West Coast spot rates sat in the $5,800 to $7,100 per FEU range, well above the sub-$2,000 levels that prevailed on the same lane in early 2024. The Shanghai Containerized Freight Index hit 3,080 for the week ending 17 July 2026. Some of that was genuine demand, but a large portion was the layered effect of multiple GRIs and PSS rounds applied in quick succession.
Then, as the front-loaded demand began to ease in the second half of July, rates started to soften. The SCFI's Far East to US West Coast component dropped roughly 8% week-on-week in late July. Carriers responded by announcing blank sailings to hold rate levels, the same capacity management that keeps the market from correcting too fast.
Front-loading shifted the peak
The traditional peak season runs roughly July through September. In 2026 it started in May, because importers pulled shipments forward ahead of tariff deadlines. That means the surcharge pressure hit earlier, but it also means the late-summer window may be softer than usual. If you have flexibility on timing, the weeks after the front-loading wave eases can offer better rates and more available space.
How surcharges affect your total cost
On a single 40ft container from Asia to the US West Coast in July 2026, the total all-in cost breaks down roughly like this:
- Base ocean freight: The contract or spot rate for the container, which is the number most shippers focus on.
- GRI: One or more flat increases layered on since the last rate adjustment. In a peak season with multiple rounds, these can add $500 to $1,500 or more per container.
- PSS: A seasonal addition on top of the GRI. Carrier-announced PSS levels on Asia to US trades in mid-2026 ranged from several hundred to over $1,000 per FEU depending on the line.
- BAF: Fuel surcharge, reset quarterly. The July 2026 reset increased BAF on many trades as bunker prices climbed.
- THC, WRS, LSS, and other surcharges: Together these typically add another $300 to $800 depending on the route and port.
Add it all up and the total invoice can be 30 to 60% higher than the base rate alone. This is why comparing freight quotes on base rate alone is misleading. Two forwarders can quote the same base rate and deliver very different total costs depending on how they pass through or absorb surcharges.
How to manage surcharge exposure
- Ask for all-in quotes. Every time you request a rate, ask for the total cost including all applicable surcharges, not just the base ocean freight. This is the only number that matters for your landed cost calculation.
- Understand your contract terms. If you have a service contract, check whether GRI caps or PSS protections are included. Some contracts cap the number of GRI increases per quarter or exclude PSS during the contract term. If yours does not, negotiate that in the next round.
- Watch the carrier announcements. GRIs and PSS are announced publicly, usually two to four weeks before they take effect. If you see a GRI effective 1 August, booking and shipping before that date locks in the current rate.
- Time shipments around the surcharge calendar. If your supply chain has flexibility, shipping before a GRI effective date or after peak season winds down can save hundreds per container.
- Spread risk across carriers. Different carriers implement GRIs and PSS on different dates and at different levels. Comparing across carriers, rather than sticking with one, can find you a lower all-in cost on any given sailing.
- Budget for the real number. When forecasting logistics spend, use the all-in rate from your most recent invoice as the baseline, not the base rate from your contract. The surcharges are not optional and they are not going away.
The bottom line
GRIs, PSS, and BAF are not hidden charges, but they are the charges that catch shippers off guard when the invoice arrives. In 2026, with peak season starting in May and carriers stacking multiple rounds of increases by July, the gap between base rates and total costs is wider than it has been in several years. Asia to US West Coast spot rates hit $5,800 to $7,100 per FEU by mid-July, with surcharges accounting for a large share of that total. The fix is straightforward: quote all-in, watch the surcharge announcements, time your bookings around effective dates when you can, and budget for the number you actually pay, not the number on the rate card.