Hidden Costs of Shipping to Thailand: What Your Freight Quote Doesn’t Include
The freight quote covers the vessel. Everything else arrives on a separate invoice.
This is not a complaint about dishonest forwarders. It is how international freight pricing is structured. Ocean carriers quote the sea leg. Origin agents quote their local services. Thai customs brokers quote their clearance fee. Port operators charge their terminal handling. And none of these parties is in the same room when your shipment is booked.
The result: a shipment with a headline freight quote of USD 800 can generate a total-cost invoice of USD 1,900 to USD 2,600 by the time the cargo reaches a Bangkok warehouse or a Chiang Mai residence. The gap is not a scam — it is the sum of legitimate, documented charges that were never part of the original quote.
This guide names every category of hidden cost in the Thailand freight chain, quantifies the typical range for each, and identifies which are avoidable and which are fixed. If you are planning a commercial shipment or a personal-effects move to Thailand and want to know what the final invoice will actually look like, this is the analysis you need before you book.
For a complete breakdown of freight quote components, see our guide to the real cost of shipping to Thailand. If you have booked a door-to-door service, see our explainer on what door-to-door shipping to Thailand actually means — because “door to door” covers a range of service levels that determines which of these costs are included and which are not.
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Why the Gap Exists: The Multi-Party Invoice Problem
International freight does not have a single provider. A typical shipment to Thailand passes through four to seven separate commercial relationships: the origin freight forwarder, the ocean carrier, the transshipment terminal operator (if relevant), the destination agent or Thai customs broker, the port operator at Laem Chabang or Bangkok port, and the last-mile delivery company. Each charges separately. Each issues its own invoice.
The freight quote you receive at the start captures one or two of these layers — usually the ocean freight and, sometimes, the origin agent’s handling fee. The rest emerge later, as the shipment moves.
Morgan Housel’s framing applies directly here: the visible cost is the invitation; the invisible cost is the actual price. Most shippers price-compare on the quoted number and discover the real number two weeks after the cargo arrives. The implication is not that you should avoid freight quotes — it is that you should know what the quote excludes before you accept it, not after.
The categories below cover every layer. Not all will apply to every shipment — a small commercial consignment and a full-container relocation move have different cost profiles. For air freight, where the hidden cost structure differs substantially from ocean shipping, the air vs sea freight comparison covers both modes in full. But the categories here are exhaustive, and the ranges are specific enough to let you build a working total-cost estimate before the first invoice lands.
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Layer 1: Origin Charges — Before the Cargo Leaves
Origin charges are levied at the departure country and are often excluded from ocean freight quotes unless the quote explicitly says otherwise.
Origin Terminal Handling Charge (THC)
The origin port charges a terminal handling fee for receiving, stacking, and loading your container or LCL consignment. For FCL (full container load) shipments, origin THC typically runs USD 120–250 per container depending on the port and carrier. For LCL (less than container load), it is charged per CBM and typically ranges from USD 8–18 per CBM.
Bill of Lading (B/L) Fee
Every ocean shipment requires a bill of lading — the title document for the cargo. The carrier charges a documentation fee of USD 25–75 per B/L. If the B/L needs to be amended after issue (because of a description change, weight correction, or address adjustment), amendment fees of USD 50–100 per change are typical.
Export Documentation and Customs Clearance
The origin freight agent handles export customs filing. This is often included in the agent’s handling fee, but on some quotes it is itemised separately at USD 50–150 per shipment. For goods that require export permits, certificates of origin, phytosanitary certificates, or fumigation certificates, additional government or inspection body fees apply — typically USD 30–100 per document.
Cargo Receipt / CFS Origin Fee (LCL only)
For LCL shipments, your cargo must be delivered to a Container Freight Station (CFS) at the origin port where it is consolidated with other shippers’ goods. The CFS charges a receiving fee — typically USD 10–20 per CBM — in addition to the origin THC. This fee is separate from the ocean freight rate and is frequently not included in initial LCL quotes.
| Origin charge | Applies to | Typical range |
|---|---|---|
| Origin THC | FCL and LCL | USD 120–250 per FCL; USD 8–18/CBM LCL |
| B/L fee | All shipments | USD 25–75 |
| B/L amendment | If changes needed | USD 50–100 per change |
| Export customs filing | All shipments | USD 50–150 (sometimes included) |
| Origin CFS fee | LCL only | USD 10–20/CBM |
| Certificates (CoO, phyto, fumigation) | As required | USD 30–100 per certificate |
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Layer 2: Ocean Freight Surcharges — The Charges Added After Booking
Ocean freight rates are quoted as a base rate per container (FCL) or per CBM (LCL). On top of that base, carriers apply a series of named surcharges. Some are stable and predictable; others are applied reactively to market conditions and can change between quote and shipment.
Bunker Adjustment Factor (BAF) / Fuel Surcharge
Fuel is the largest variable cost for ocean carriers. The BAF is applied per container or per CBM to recover fuel cost fluctuations above the baseline assumed in the base rate. BAF rates vary by trade lane and carrier. On Asia–Thailand routes, BAF typically adds USD 50–200 per FCL or USD 3–10 per CBM for LCL. On Europe–Thailand routes, the BAF is larger: USD 200–600 per FCL.
Low Sulphur Surcharge (LSS)
Since January 2020, IMO regulations under MARPOL Annex VI require ocean carriers to use low-sulphur fuel (0.5% sulphur cap globally, 0.1% in Emission Control Areas). The additional fuel cost is passed through as an LSS, sometimes called a Low Sulphur Fuel Surcharge (LSFS) or IMO 2020 surcharge. The LSS applies in addition to the BAF and typically adds USD 30–100 per FCL on mid-range trade lanes.
War Risk Surcharge (WRS)
Since the Houthi attacks on Red Sea shipping that began in late 2023, carriers have applied a War Risk Surcharge on cargo transiting through or near the Red Sea zone. For Europe-origin cargo rerouted via the Cape of Good Hope — which is now the standard routing for most Europe–Asia trade as of mid-2024 — the WRS can add USD 100–400 per FCL depending on origin port and carrier. BIMCO analysis of the Red Sea disruption published in early 2024 documented the structural uplift in both cost and transit time that this rerouting created.
Peak Season Surcharge (PSS)
Carriers apply a PSS during periods of high demand — typically Q3 (July–September) when pre-Christmas production peaks, and around Chinese New Year. The PSS adds USD 100–500 per FCL on busy trade lanes. Importers who book outside peak windows avoid this charge entirely.
General Rate Increase (GRI)
Carriers periodically implement GRIs — announced rate increases applied on a specific date. If your shipment moves after a GRI date but was quoted before it, the higher rate applies. Quotes are typically valid for 7–14 days, which limits the exposure on most bookings, but on slow-moving shipments the timing risk is real.
Currency Adjustment Factor (CAF)
Ocean freight is priced in USD, but origin and destination costs are invoiced in local currencies. The CAF is a carrier surcharge designed to hedge against USD exchange rate movements. It is small — typically 0–3% of the base rate — but adds to the total.
| Surcharge | When applies | Typical range (per FCL) |
|---|---|---|
| BAF / Fuel Surcharge | Always | USD 50–600 depending on trade lane |
| Low Sulphur Surcharge | Always (post Jan 2020) | USD 30–100 |
| War Risk Surcharge | Red Sea / Cape rerouting | USD 100–400 |
| Peak Season Surcharge | Q3, CNY | USD 100–500 |
| GRI | Periodic carrier increases | USD 100–300 |
| CAF | USD/local FX movement | 0–3% of base rate |
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Layer 3: Thai Destination Port Charges — Laem Chabang and Bangkok Port
Once cargo arrives at a Thai port, a separate set of charges applies at the destination before customs clearance can begin. These are charged by the port operator (the Port Authority of Thailand for Laem Chabang and Bangkok Port) and by the CFS operator for LCL shipments.
Destination Terminal Handling Charge (THC)
The destination THC mirrors the origin THC — it covers unloading, handling, and storage at the receiving terminal. At Laem Chabang, destination THC for FCL is typically THB 3,500–5,500 per 20ft container and THB 5,500–8,000 per 40ft container. For LCL, it is typically THB 300–700 per CBM.
CFS Deconsolidation Fee (LCL only)
LCL cargo arrives in a consolidated container and must be broken down at a Container Freight Station before individual consignments can be released for customs clearance. The CFS deconsolidation fee at Thai ports typically runs THB 400–900 per CBM. This is in addition to the destination THC and is frequently not included in LCL freight quotes from overseas forwarders, because it is charged by a separate Thai party.
Port Entry / Import Declaration Fee
A government customs entry processing fee applies to every import declaration. This is typically THB 200–500 per entry and is separate from the customs broker’s professional fee.
Examination / Inspection Fee
Thai Customs selects some shipments for physical examination. The rate of selection varies by HS code, shipper history, and declared value. If a shipment is selected for examination, an examination fee of THB 500–2,500 applies, along with the cost of unstuffing and restuffing a container if required — which can add THB 3,000–10,000 for an FCL container.
Storage and Demurrage
Containers at Laem Chabang receive a free time period of three to five days after vessel discharge. Beyond free time, demurrage (storage charges on the container itself, billed by the carrier) and detention (charges for the container leaving port without being returned) accumulate. Typical demurrage at Thai ports: USD 30–80 per container per day after free time. For LCL cargo at a CFS, storage runs THB 500–1,500 per CBM per week. Clearance delays — caused by incomplete documentation, customs queries, or the Songkran backlog — convert quickly into material storage costs.
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Layer 4: Thai Customs — Duty, VAT, and Excise Tax
Thai customs costs are deterministic once you know your HS code, declared CIF value, and goods category. They are not hidden in the sense that they are unpublished — the Thai Customs Department publishes full tariff schedules. They are hidden in the sense that no freight quote mentions them, and many shippers discover them for the first time when their broker sends the duty assessment.
Import Duty
Thailand’s import duty rates are set by HS code. The range is wide: zero percent for some raw materials and goods covered by ASEAN free trade agreements; 5–20% for most manufactured goods; up to 80% on some agricultural goods, vehicles, and alcohol. For goods shipped from China, ASEAN-China FTA (ACFTA) rates may reduce the applicable rate to zero or near-zero if a valid certificate of origin (Form E) accompanies the shipment. For goods from other origins, the MFN rate applies.
The base for duty calculation is the CIF value: the declared cost of goods plus insurance plus international freight. A USD 5,000 consignment shipped at USD 800 freight becomes a CIF value of approximately USD 5,840 — and duty is calculated on that higher figure, not just the goods value.
Value Added Tax (VAT)
Thailand charges 7% VAT on imports. VAT is calculated on the CIF value plus the import duty payable — so it is a tax on a tax. For a consignment with CIF USD 5,840 and duty at 10% (USD 584), the VAT base is USD 6,424, and the 7% VAT is USD 450. The Thai Revenue Department sets and administers import VAT, and it applies to virtually all commercial goods.
Excise Tax
Certain goods attract excise tax in addition to import duty and VAT. Thailand’s Excise Department administers excise on tobacco, alcohol, vehicles, luxury goods, electronic appliances, and some categories of cosmetics. Excise rates vary from 5% to 400% depending on the product. Alcohol, for example, is subject to both ad valorem and specific (per-unit) excise, making the effective duty-plus-excise rate substantially higher than the tariff schedule suggests. Shippers of any goods in these categories must obtain excise tax clearance in addition to customs clearance.
Customs Broker Fee
Thai customs clearance requires a licensed customs broker. Broker fees range from THB 2,000–5,000 for a straightforward commercial consignment to THB 8,000–15,000 for complex shipments involving excise, multiple HS codes, or an examination. Some brokers charge a percentage of shipment value (typically 0.3–0.5%) in place of or in addition to a flat fee. The broker’s fee covers customs entry preparation, filing, and liaison with customs officers during examination — it does not cover duty, VAT, or examination fees, which are government charges paid separately.
| Thai customs cost | Basis | Typical range |
|---|---|---|
| Import duty | HS code × CIF value | 0–80% (5–20% for most goods) |
| VAT | 7% × (CIF + duty) | 7% (fixed) |
| Excise tax | Category-specific rates | 5–400% (selected goods only) |
| Customs broker fee | Per entry + complexity | THB 2,000–15,000 |
| Entry processing fee | Per declaration | THB 200–500 |
For goods that qualify for duty relief — personal effects accompanying a change of residence, or specific exempted categories — the duty and VAT obligations change significantly. See our guide to duty-free import rules in Thailand for the qualifying conditions and documentation requirements.
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Layer 5: Last-Mile Delivery Within Thailand
International freight quotes almost never include last-mile delivery within Thailand. The quote terminates at the port — either at Laem Chabang or Bangkok Port. The cost of moving cargo from port to the final destination is a separate charge negotiated in Thailand.
The range is wide:
- Laem Chabang to Bangkok (commercial address): THB 3,500–7,000 per truck move (standard 4-wheel truck). Transit time: same day or overnight.
- Laem Chabang to Bangkok (residential building): Add 20–40% for residential handling, floor access, elevator coordination, and weekend or time-specific delivery.
- Bangkok to provincial cities (Chiang Mai, Phuket, Khon Kaen, Hat Yai): THB 8,000–20,000 per truck move, depending on distance and access conditions.
- LCL delivery from CFS: LCL shipments are collected by van or small truck from the CFS. Delivery within Bangkok: THB 1,500–3,500. Outside Bangkok: higher, based on distance and access.
For multi-piece or heavy shipments, charges for additional porters, equipment hire (pallet trucks, forklifts), or wrapping services may be added. A “door-to-door” quote that terminates at the Thai CFS is not truly door-to-door — it stops at the port-side facility and the final leg must be separately arranged and costed.
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Layer 6: Marine Insurance — The Cost of Going Uninsured
Marine cargo insurance is not included in any freight quote unless explicitly stated and priced as a separate line item. Many shippers skip it — and discover the gap when a claim event occurs.
Ocean carrier liability under the Hague-Visby Rules — the international convention governing sea freight liability — is limited to the lower of the declared value or 2 SDR per kilogram of gross weight or 667 SDR per package. At current SDR-to-USD exchange rates, 2 SDR per kg equates to roughly USD 2.70 per kg. A 500 kg shipment worth USD 15,000 is covered for a maximum of USD 1,350 under carrier liability — less than 10% of the goods value. The carrier’s obligation ends there.
Marine cargo insurance closes this gap. A standard all-risks marine insurance policy on goods being shipped to Thailand typically costs 0.3–0.8% of the insured CIF value. On a USD 10,000 consignment, the premium is USD 30–80. The coverage is comprehensive: loss or damage from vessel sinking, container damage, theft, and general average contributions. For a full explanation of marine insurance for Thailand-bound shipments, see our guide to cargo insurance when shipping to Thailand.
The arithmetic is straightforward. The premium is a small, known cost. The alternative — no insurance, carrier liability only — exposes the shipper to a very large, uncertain cost if something goes wrong. NateSilver’s framing applies: you are not paying insurance premium because you expect a loss; you are paying it because the cost of the premium is modest and the cost of the unhedged outcome is not.
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Layer 7: Songkran Timing — The Seasonal Storage Cost
Thailand’s Songkran festival (Thai New Year) runs in mid-April, typically 13–15 April, with commercial disruption extending from approximately 10 April to 18 April. During this period, Thai customs operations slow significantly, port staffing drops, and CFS operations at Laem Chabang run on reduced capacity.
The practical effect on shipments arriving at this time:
- Customs clearance delay: 7–14 additional days for shipments that arrive in port during the Songkran window. Consignments that would typically clear in 3–5 days may sit for 10–14 days.
- Storage cost accumulation: At THB 500–1,500 per CBM per week, a 5 CBM LCL shipment held for an extra 10 days incurs THB 3,500–10,500 in additional storage.
- FCL demurrage: An FCL container held past free time during Songkran accumulates demurrage at USD 30–80 per day — adding USD 210–560 for a week of additional delay.
The avoidance strategy is simple: book shipments to arrive at Laem Chabang before 5 April or after 20 April. Cargo that arrives 5 working days before Songkran has a reasonable chance of clearing before the slowdown; cargo arriving 5 working days after has a clean run. Cargo arriving in the middle pays the storage penalty.
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Layer 8: Three-Currency FX Risk
A single international shipment to Thailand routinely generates invoices in three currencies: EUR or CNY at origin, USD for the ocean freight and most surcharges, and THB for destination port charges, customs duty/VAT, broker fees, and last-mile delivery. The time between booking and final payment can be 30–60 days.
If your budget is set in a single currency — AUD, GBP, EUR — and rates move during this window, the total cost in your home currency will differ from the estimate. On a USD 5,000 total freight invoice, a 5% USD appreciation against AUD adds AUD 250 to the cost without any change in the freight market.
The mitigation options are: forward contracts (for large, regular shippers), booking and paying promptly on a confirmed rate, or simply building a 5–8% FX buffer into the total cost estimate for any shipment booked more than two weeks in advance of payment.
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The Five Avoidable Costs — And How to Avoid Them
Not all of the costs above are controllable. Import duty and VAT are fixed by HS code and declared value. Origin THC is levied by the port. Ocean freight surcharges are carrier pricing decisions. But several categories are genuinely avoidable with planning:
1. Ask for an all-in quote in writing before booking
Specify that you want a quote that includes: origin charges (THC, B/L fee, CFS if LCL), ocean freight and named surcharges, destination THC, CFS deconsolidation if LCL, and last-mile delivery to your specific address in Thailand. A forwarder who can provide this is giving you a real number. A forwarder who cannot should not be providing it at quote stage — because it will appear at invoice stage.
2. Time the arrival to avoid Songkran
A cargo with a Laem Chabang arrival date of 8–18 April generates preventable storage costs. An identical cargo arriving 25 April does not. The booking decision that determines arrival date is made 25–45 days before arrival. The Songkran window is published and predictable every year.
3. Confirm the HS code with your Thai broker before the shipment leaves origin
The HS code determines the duty rate. A misclassification — common when origin agents apply a code without checking Thai tariff specifics — can result in the wrong duty rate being applied, requiring amendment at the Thai customs stage. A two-minute conversation with your Thai broker, sending the product description before the shipment departs, eliminates this risk. See our guide to required documents for shipping to Thailand for a full documentation checklist.
4. Buy marine insurance before booking, not after
Marine insurance must be arranged before the cargo is loaded. It cannot be arranged retrospectively if damage occurs in transit. The premium is deterministic (0.3–0.8% of CIF value) and small relative to the goods value. Arranging it at booking, not as an afterthought, costs USD 30–80 on a typical commercial consignment and eliminates the carrier-liability exposure.
5. Consolidate shipments to reduce per-unit CFS costs
LCL shipments incur a CFS deconsolidation fee per consignment, not per CBM beyond a threshold. A shipper sending three small LCL consignments in successive weeks pays three CFS fees. A shipper consolidating those goods into one larger LCL shipment pays one CFS fee. For regular shippers with predictable cargo volume, a monthly consolidated booking pattern reduces CFS cost, origin CFS fees, B/L fees, and broker fees proportionally.
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Putting It Together: A Worked Cost Example
To illustrate how the layers stack, consider a 6 CBM LCL commercial consignment of manufactured goods (HS code with 10% duty rate), shipped from Hamburg to Bangkok, arriving in May 2025.
| Cost layer | Item | Estimated cost |
|---|---|---|
| Goods value (CIF basis) | USD 8,000 goods + USD 1,200 freight + USD 60 insurance = CIF USD 9,260 | — |
| Origin charges | Origin THC (6 CBM × USD 12), CFS origin fee (6 × USD 15), B/L fee, export filing | USD 322 |
| Ocean freight + surcharges | Base rate + BAF + LSS + WRS (Cape routing) + PSS (not applicable, May) | USD 1,200 |
| Marine insurance | 0.5% × CIF USD 9,260 | USD 46 |
| Destination THC | 6 CBM × THB 500/CBM ≈ | THB 3,000 (~USD 84) |
| CFS deconsolidation | 6 CBM × THB 650/CBM ≈ | THB 3,900 (~USD 109) |
| Thai import duty | 10% × CIF THB 333,360 (USD 9,260 × ~36) | THB 33,336 (~USD 926) |
| Thai VAT | 7% × (CIF + duty) = 7% × THB 366,696 | THB 25,669 (~USD 713) |
| Customs broker fee | Standard LCL commercial entry | THB 4,500 (~USD 125) |
| Last-mile delivery, Bangkok | Van delivery, commercial address | THB 3,500 (~USD 97) |
| Total estimated cost | ~USD 3,622 |
The ocean freight quote for this shipment — if quoted only as the sea leg — might have been USD 600–800. The all-in total is USD 3,622, or 4.5–6x the headline freight number. None of the additional costs are unusual, unexpected, or the result of any error. They are the standard cost stack for a LCL commercial shipment to Bangkok.
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The Documentation That Prevents Surprises
Several of the cost categories above — examination fees, HS code amendments, duty reassessments — are triggered by documentation gaps. A commercial invoice with an inadequate goods description forces customs to reclassify. A missing certificate of origin means no FTA rate can be applied. A packing list that disagrees with the B/L triggers an examination.
The preparation cost — verifying documents before the shipment departs origin — is zero. The correction cost, once cargo is in port, can run THB 3,000–15,000 in reclassification, examination, and re-entry fees, plus the delay cost of keeping a container in port while queries are resolved.
The practical rule: send your commercial invoice, packing list, and product descriptions to your Thai broker before the shipment sails. Ask them to confirm the HS classification and the expected duty rate. A 15-minute email exchange before departure eliminates the most common source of post-arrival cost escalation.
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The importer does not hire a freight forwarder to move cargo. They hire a freight forwarder to eliminate cost surprises. These are different jobs. A forwarder who delivers efficient cargo movement but a final invoice 40 percent above the opening quote has succeeded at the stated task and failed at the actual one. The reason most freight quotes leave out origin THC, CFS fees, and customs broker charges is not dishonesty. It is that the quoting system was designed by carriers optimising for their own cost transparency, not the importer’s. Until importers define the job correctly — all-in cost to warehouse — the quote they receive will keep being an incomplete answer to a question they did not fully ask.
Frequently Asked Questions
Why is my total shipping bill to Thailand so much higher than the original quote?
International freight quotes typically cover only one or two cost layers — usually the ocean freight and sometimes the origin agent fee. Destination port charges, Thai customs duty and VAT, customs broker fees, CFS deconsolidation (for LCL), and last-mile delivery are charged by separate parties and billed separately. A six-layer cost stack (origin charges, ocean freight + surcharges, marine insurance, destination port charges, Thai customs, last-mile) is standard for a complete shipment to Thailand. The total is typically 3–6x the headline freight quote depending on goods value, HS code, and volume.
What is a destination THC and why do I pay it twice (origin and destination)?
Terminal Handling Charges (THC) are port operator fees — the charge for receiving, handling, and loading/unloading containers. The origin port charges a THC to load your cargo onto the vessel; the destination port charges a THC to unload it. These are two separate port operators in two different countries, so two separate charges apply. Neither is included in most ocean freight base rate quotes. At Laem Chabang, destination THC is typically THB 3,500–5,500 for a 20ft container or THB 300–700 per CBM for LCL.
Does Thailand charge VAT on imports?
Yes. Thailand charges 7% VAT on imports, administered by the Thai Revenue Department. VAT is calculated on the CIF value of goods (cost + insurance + freight) plus the applicable import duty. This means VAT is effectively levied on a higher base than just the goods cost. For example, goods with a CIF value of THB 300,000 and 10% duty (THB 30,000) attract 7% VAT on THB 330,000 = THB 23,100. VAT applies to nearly all commercial goods imports and is paid as part of the customs clearance process before goods are released from port.
What is a CFS deconsolidation fee and when does it apply?
A Container Freight Station (CFS) deconsolidation fee applies to LCL (less than container load) shipments. LCL cargo from multiple shippers is consolidated into one container for the ocean voyage. At the destination port — Laem Chabang or Bangkok Port — the container must be broken down (deconsolidated) by a CFS operator before individual consignments can be released for customs clearance. The CFS charges a deconsolidation fee for this service, typically THB 400–900 per CBM at Thai ports. This fee is charged by the Thai CFS operator and is almost never included in overseas freight quotes.
How do I avoid Songkran-related storage charges?
The simplest way is to time your booking so the cargo arrives at Laem Chabang before 5 April or after 20 April. Thai customs operations slow during the Songkran period (approximately 10–18 April), adding 7–14 days to typical clearance times. Cargo held at a CFS incurs storage at THB 500–1,500 per CBM per week; FCL containers in port incur demurrage at USD 30–80 per day after the free period. Working backward from the desired arrival date: count 35–50 days from the origin port departure date (for Asia-origin cargo) or 55–70 days (Europe-origin via Cape route) to determine the latest acceptable vessel departure date that avoids a Songkran arrival.
Is marine insurance included in my freight quote?
No, unless your quote explicitly includes it as a named line item. Most freight quotes do not include marine cargo insurance. Ocean carrier liability under the Hague-Visby Rules is limited to approximately USD 2.70 per kg of gross weight or 667 SDR per package — whichever is lower — which is far below the value of most commercial consignments. Marine cargo insurance (all-risks) typically costs 0.3–0.8% of the insured CIF value and must be arranged before the cargo is loaded. It cannot be purchased retrospectively after damage occurs.

