This paper demonstrates that the nature of freight rates has become
more complex. A growing number of surcharges are being
applied to all trade routes. This has a number of consequences
for shippers. First, shippers find that the base rates quoted and
negotiated with the carriers do not reflect the total set of charges
levied. Second, the surcharges are changed with considerable frequency,
a situation that adds uncertainty to shippers who are seeking
to plan their supply chains. Third, there is growing evidence
that many of the surcharges are not transparent and do not reflect
the actual costs incurred by the carriers. This is seen by many in
the shipping and ports industry to be a revenue grab.