In This Guide
1. US & Canada Surcharges Overview — Why It Is the Most Complex 2. Government Compliance: AMS + ISF Filing Fees 3. South China ORC: The Origin Receiving Charge 4. Panama Canal Surcharge (PCS) & Drought Impact 5. Destination Charges: DDC, Chassis Fee, CTF 6. Peak Season PSS & GRI on Trans-Pacific 7. July 2026 Reference Rate Table 8. FAQUS & Canada Surcharges Overview — Why It Is the Most Complex
The complexity stems from five structural factors. First, US Customs and Border Protection (CBP) operates the strictest cargo security regime in the world. AMS automated manifest filing and ISF Importer Security Filing (10+2) are direct legacies of post-9/11 counterterrorism legislation, and both are non-negotiable compliance costs on every US-bound shipment. Second, the US port operating model is unique. The chassis separation that began in 2009 — when carriers sold off their chassis fleets to specialized leasing companies — created a standalone chassis rental charge that exists nowhere else at this scale. Third, geography imposes layered costs: US East Coast and Gulf Coast shipments transit the Panama Canal (PCS surcharge), and the 2023-2024 drought introduced additional volatility into that cost layer. Fourth, peak season amplitude is unmatched — Trans-Pacific PSS reaches $300-800/40HQ, compared to $50-150 on intra-Asia routes. Fifth, Canada's ACI (Advance Commercial Information) eManifest system runs parallel to but separate from AMS, adding complexity for shipments destined to or transiting through Canada.
For importers bringing goods from China to North America, understanding each surcharge — what triggers it, how much it typically costs, and whether it can be mitigated — is the foundation of landed cost control. Importers unfamiliar with the surcharge structure routinely find actual freight invoices 50% or more above initial quotes. This guide itemizes every key Trans-Pacific surcharge with July 2026 reference rates. For more on FCL and LCL freight services from China, see our sea freight services page.
Government Compliance: AMS + ISF Filing Fees
AMS (Automated Manifest System)
AMS is the electronic manifest filing system that CBP requires of all ocean carriers bringing cargo to or through the United States. The legal basis is the Trade Act of 2002. The core requirement: carriers must transmit complete cargo manifest data to CBP at least 24 hours before the container is loaded onto the vessel at the foreign port. Required data includes shipper, consignee, notify party, cargo description (to 6-digit HS code), piece count, weight, container number, and seal number. CBP uses this data for risk assessment and anti-terrorism screening before loading — high-risk cargo receives a "Do Not Load" instruction.
The AMS filing fee of $25-35 is charged per bill of lading, not per container. A consolidated shipment issued under a single B/L incurs one AMS fee, while split B/Ls incur separate fees. Consolidating B/Ls where possible reduces this cost, but only if all cargo goes to the same consignee and can clear customs together.
ISF (Importer Security Filing) — 10+2
ISF places the filing responsibility on the importer, not the carrier. The US importer — or their authorized agent based in the US — must file 10 data elements with CBP at least 24 hours before vessel loading at the foreign port. These 10 elements are: manufacturer name and address, seller name and address, buyer name and address, ship-to party, container stuffing location, consolidator name and address (for LCL), importer of record number, consignee number, country of origin, and 6-digit HS code. The carrier simultaneously files 2 elements — vessel stow plan and container status messages — hence "10+2."
ISF filing fees run $25-50 per B/L through a customs broker. The real risk is non-compliance: CBP can impose civil penalties of $5,000 per violation for late, incomplete, or inaccurate ISF filings. In the worst case, cargo loaded without a complete ISF can be denied unloading at the US port and ordered re-exported. In practice, most importers delegate ISF filing to their US customs broker as part of the broader customs clearance engagement.
Canada: ACI eManifest
The Canada Border Services Agency (CBSA) operates the ACI (Advance Commercial Information) eManifest system, which serves the same function as AMS/ISF but under Canadian legislation. Carriers must transmit electronic manifest data to CBSA at least 24 hours before loading at the foreign port. The ACI filing fee is approximately CAD 25-35 per B/L. For shipments routed via a US West Coast port and then by rail to Canada (Toronto or Montreal via IPI), both AMS (for the US transit leg) and ACI (for the final Canadian destination) must be filed. This dual-filing requirement adds complexity to US-landbridge-to-Canada routings.
For more on North American customs compliance and DG cargo documentation, see our DG freight service page and how to choose a China freight forwarder guide.
South China ORC: The Origin Receiving Charge
The origins of ORC trace back to the explosive export growth from the Pearl River Delta in the late 1990s. Shenzhen and Guangzhou to US West Coast volumes surged, and carriers competed so aggressively for market share that base ocean freight rates were driven to zero — and occasionally below zero (carriers subsidizing trucking to fill vessels). Carriers still had real costs to cover: terminal handling (OTHC), documentation processing, and container yard operations. They bundled these into ORC — a standalone surcharge that bypassed the zero-rate base freight and recovered real operational costs.
In theory, ORC includes OTHC (origin terminal handling charge) and part of the documentation fee. In practice, some freight quotes show both ORC and OTHC as separate line items on South China shipments — this is a potential double-charge. Shippers should check: if ORC is listed, OTHC should typically not appear as a separate item on the same invoice.
Why does ORC not exist in Shanghai or Qingdao? The historical dynamics were different. East China and North China Trans-Pacific rates never hit the same zero-rate lows that South China experienced. OTHC remained a standalone, sufficient cost-recovery item, and there was never a need to create ORC as a compensatory mechanism. For North China shippers (Shandong, Hebei, Henan), exporting from Qingdao to the US avoids ORC entirely — a $141-214 per container cost advantage over South China, on top of shorter domestic trucking distances. For more on departure port selection, see our sea freight services page.
| Container Type | ORC Rate (South China to US/Canada) | Note |
|---|---|---|
| 20GP | USD 141 | Standard across carriers |
| 40GP | USD 189 | Standard across carriers |
| 40HQ | USD 214 | Standard across carriers |
| East China / North China origin | No ORC | Shanghai, Ningbo, Qingdao, Tianjin, and all other Chinese ports |
Panama Canal Surcharge (PCS) & Drought Impact
How PCS Is Calculated
The Panama Canal Authority (ACP) charges tolls based on vessel size (PC/UMS tonnage), vessel type, and container load. A fully loaded 8,000-14,000 TEU containership on the China-USEC route pays $300,000-700,000 per canal transit. The carrier divides this cost by the number of laden containers onboard to arrive at a per-container PCS amount. The standard PCS for China-USEC shipments runs $200-400 per 40HQ, varying by carrier and canal toll adjustments.
China-US West Coast shipments (Los Angeles, Long Beach, Oakland, Seattle) do not transit the Panama Canal and therefore do not incur PCS. This is one of the structural cost differences between USWC and USEC routings. USEC shipments carry higher ocean freight and PCS costs but serve the eastern and midwestern US consumer markets with shorter inland truck/rail distances, so the total landed cost comparison depends on the final delivery point.
2023-2024 Panama Canal Drought: A Historic Disruption
From late 2023 through 2024, the Panama Canal experienced its most severe drought since opening in 1914. Gatun Lake — the canal's primary water source and reservoir — dropped to critically low levels, forcing the ACP to progressively cut daily vessel transits from the normal 36-38 to 24, 22, and at the worst point, 18 vessels per day. Carriers faced a stark choice: wait days or weeks for a scarce regular transit slot (vessels anchored outside the canal), or bid for auction slots at costs reaching millions of dollars per transit.
These extraordinary costs were passed to shippers via temporary "Panama Canal Drought Surcharge" or "Panama Canal Low Water Surcharge" add-ons of $100-300 per container on top of standard PCS. Some carriers bypassed the canal entirely: routing USEC-bound vessels via the Suez Canal (longer transit but uncongested canal passage), or discharging at US West Coast ports and using intermodal rail — the Mini Land Bridge (MLB) — to reach East Coast destinations.
The 2026 situation: water levels have partially recovered but remain below pre-2022 norms. The ACP has introduced a new Fresh Water Surcharge as a permanent component of the toll structure, adding a new permanent layer to canal-related costs. USEC importers should budget Panama Canal costs as a persistent floating variable, not a one-time disruption expense.
Destination Charges: DDC, Chassis Fee, CTF
DDC (Destination Delivery Charge)
DDC is a bundled destination service charge covering the full chain of terminal operations from vessel discharge to the point where the consignee's trucker receives the container at the terminal gate. It encompasses: ship-to-shore crane discharge, terminal yard handling and stacking, storage within the free-time period (typically 3-5 days; beyond that, demurrage applies separately), chassis usage within the terminal complex, and gate administration (gate fee). DDC is a carrier/terminal operator service charge, not a government fee.
| Destination Region | 20GP DDC | 40GP/40HQ DDC | Note |
|---|---|---|---|
| US West Coast (LA/LB/Oakland/Seattle) | $250-400 | $350-600 | LA/LB at the high end; Seattle/Tacoma at the low end |
| US East Coast (NY/NJ/Norfolk/Savannah/Charleston) | $300-500 | $450-800 | NY/NJ at the high end; Savannah at the low end |
| US Gulf Coast (Houston/New Orleans/Mobile) | $280-450 | $400-700 | Between USWC and USEC levels |
| Canada (Vancouver/Prince Rupert/Montreal) | CAD 300-500 | CAD 400-650 | Generally lower than comparable US ports |
Why the USEC premium? Three factors: union labor agreements at East Coast terminals carry higher wage and benefit costs; East Coast terminal footprints are tighter (many built in the early 20th century), reducing yard efficiency and raising per-move costs; and chassis turnaround distances within terminal complexes are longer. The LA/LB port complex is the most expensive on the West Coast; Seattle and Tacoma are notably cheaper.
Chassis Fee — A Uniquely American Surcharge
A chassis is the wheeled trailer frame that a truck uses to haul a container. In virtually every port worldwide — all Chinese ports, major European ports, Southeast Asian ports — the chassis is provided with the container at no separate charge. The US is the exception.
Starting in 2009, in the aftermath of the financial crisis, major ocean carriers — led by Maersk's APM Terminals — began selling their chassis fleets to specialized intermodal equipment leasing companies: TRAC Intermodal, DCLI (Direct ChassisLink Inc.), and Flexi-Van. The rationale was straightforward: chassis are heavy, low-return port infrastructure assets. Carriers exited, and professional leasing companies took over on a market-rate basis. The structural consequence: since that divestiture wave, containers and chassis in the US are owned by separate entities, and the consignee — or their trucker — must rent a chassis separately.
Daily chassis rental rates currently run $25-50 per day, depending on port, leasing company, and contract terms. A shipment typically requires 2-4 days of chassis use (pickup + drayage + unloading + empty return), so per-shipment chassis costs fall in the $50-200 range. This line item consistently catches first-time US importers off guard — they budget for ocean freight and assume it covers port-to-warehouse, then discover a chassis rental invoice they never anticipated.
CTF (Clean Truck Fee) and Other Port-Specific Destination Surcharges
CTF is an environmental fee levied by the Ports of Los Angeles and Long Beach under their 2008 Clean Truck Program, which mandates progressively lower emissions from drayage trucks serving the port complex. CTF is approximately $10-20 per container per gate move. Other US ports do not currently have an identically named fee, though New York/New Jersey is developing similar programs. The LA/LB complex also charges PierPass / TMF (Traffic Mitigation Fee) of approximately $30-40 per 40GP/40HQ for daytime weekday gate moves, designed to incentivize off-peak (night and weekend) container pickup.
Peak Season PSS & GRI on Trans-Pacific
PSS (Peak Season Surcharge)
The Trans-Pacific peak season runs from July through November, aligned with the US Thanksgiving and Christmas retail import cycle. Chinese and Southeast Asian factories ship heavily during this window, and vessel space on Trans-Pacific services tightens dramatically. Carriers implement PSS to ration scarce capacity — space goes to shippers willing to pay the peak premium.
The Trans-Pacific PSS magnitude dwarfs every other trade lane. Southeast Asia intra-Asia PSS typically runs $50-150/container. China-Europe PSS reaches $200-500/40HQ. The Trans-Pacific routinely hits $300-800/40HQ. The fundamental reason: the Trans-Pacific is the most profitable trade corridor for carriers, and peak season surcharges in this lane flow almost directly to the bottom line.
The 2026 peak season: major carriers began issuing PSS notices in early July, with first-round PSS at $400-600/40HQ. If Q3 volumes sustain or strengthen, a second round of PSS increases in August-September is likely. Historically, during the 2021 pandemic-driven peak, Trans-Pacific PSS briefly exceeded $1,000/40HQ. While 2026 is unlikely to repeat that extreme, the ongoing restructuring of global supply chains — partial diversification from China to Southeast Asia and Mexico — makes Trans-Pacific capacity dynamics more nuanced and harder to predict than in the past.
GRI (General Rate Increase)
GRI differs from PSS in intent: PSS says "it is peak season, so the price goes up." GRI says "the overall rate level needs to rise." GRI is a structural rate adjustment tool that carriers file with the FMC (Federal Maritime Commission) before implementation, typically at $400-600/40HQ. During a strong peak season, carriers may implement multiple GRI rounds: one in June, another in August, and a third in October.
In practice, announced GRIs do not always stick at the full amount. A carrier announces a $600/40HQ GRI; if subsequent market demand cannot support it, the actual transacted rate increase may only be $300 or even $200. This is known in the industry as "GRI erosion." Shippers and freight forwarders can mitigate GRI impact through annual contract rate-lock provisions, booking ahead of the peak window, and competitive quoting across multiple carriers.
For more on Trans-Pacific rate trends and sourcing strategies, see our freight forwarder services and freight forwarder selection guide.
July 2026 Reference Rate Table: US & Canada Shipping Surcharges
| Surcharge Item | Abbreviation | Typical Rate (July 2026) | Unit | Applicable Scope / Notes |
|---|---|---|---|---|
| Ocean Freight (base) | O/F | $2,000-3,500 (USWC) / $3,000-4,500 (USEC) | 40HQ | Spot market reference; fluctuates frequently |
| Bunker Adjustment Factor | BAF | $280-560/40HQ | Per container type | Quarterly floating, adjusted per carrier notice |
| Low Sulphur Surcharge | LSS | $100-140/40HQ | Per container type | IMO 2020 sulphur cap compliance cost |
| AMS Filing Fee | AMS | $25-35/BL | Per bill of lading | CBP mandatory; also required for US in-transit cargo |
| ISF Importer Security Filing | ISF | $25-50/BL | Per bill of lading | Filed by importer or customs broker |
| Canada ACI Filing Fee | ACI | CAD 25-35/BL | Per bill of lading | Canada-destined cargo only |
| Origin Receiving Charge | ORC | $141 (20GP) / $189 (40GP) / $214 (40HQ) | Per container type | South China origin only (Shenzhen/Guangzhou/Xiamen) |
| Terminal Handling Charge (Origin) | OTHC | CNY 900-1,200/40HQ | Per container type | East/North China origin; may be included in ORC for South China |
| Panama Canal Surcharge | PCS | $200-400/40HQ | Per container type | USEC/Gulf only; not applicable to USWC |
| Destination Delivery Charge | DDC | USWC $350-600/40GP; USEC $450-800/40GP | Per container type | Covers discharge, yard storage, chassis (in-terminal), gate fee |
| Chassis Fee | Chassis | $25-50/day | Per day per container | US-specific; typically 2-4 days usage |
| Clean Truck Fee | CTF | $10-20/container | Per container | LA/LB ports only |
| Peak Season Surcharge | PSS | $300-800/40HQ | Per container type | July-November peak season; not charged off-peak |
| General Rate Increase | GRI | $400-600/40HQ (per round) | Per container type | FMC-filed; may repeat multiple times in peak season |
| Intl Ship & Port Security | ISPS | $8-15/container | Per container | Global standard; negligible negotiation room |
| Seal Fee | Seal | $5-10/container | Per container | Small amount but on every shipment |
| Documentation Fee | DOC | $50-100/BL | Per bill of lading | Covers B/L issuance and release |
| Container Imbalance Charge | CIC / EIS | $50-300/40HQ | Per container type | Moderate on US lane (return cargo exists: waste paper, ag products) |
| Inland Point Intermodal | IPI / Rail Surcharge | $300-800/container | Per container | For rail to Chicago, Dallas, Memphis, and other inland points |
| Dangerous Goods Surcharge | DG Surcharge | $150-500/container | Per container | Varies by IMDG class and carrier policy |
How to use this table: This is a budgetary framework, not a live quote. When securing actual freight quotes, always request an all-in rate breakdown that itemizes every surcharge. Two forwarders quoting "all-in" can differ by $300-500 simply because their quotes include or exclude different surcharge items. North China shippers exporting from Qingdao save ORC ($141-214/container) plus domestic trucking ($200-400/container) versus South China origin — a combined $341-614/container advantage before ocean freight is even factored in.
Great Hensen's Qingdao office is 5 kilometers from Qingdao Qianwan Container Terminal. We provide FCL and LCL Trans-Pacific services for Shandong, Hebei, and Henan shippers with full surcharge transparency. See our contact page for rate inquiries.
FAQ: US & Canada Shipping Surcharges
How many surcharges appear on a typical US-bound freight invoice?
A typical Trans-Pacific freight invoice may list 15-20 surcharge line items — the most of any global trade lane. Beyond base ocean freight, expect: BAF, LSS, AMS ($25-35/BL), ISF ($25-50/BL), ORC (South China origin), PCS (USEC/Gulf only), DDC (USWC $350-600/40GP, USEC $450-800/40GP), Chassis Fee ($25-50/day), CTF (LA/LB ports), PSS ($300-800/40HQ during peak), GRI ($400-600/40HQ per round), OTHC, ISPS ($8-15/container), Seal Fee ($5-10), DOC ($50-100/BL), CIC, and IPI (for inland destinations). Surcharges frequently total more than the base ocean freight. Always request an itemized all-in quote and verify each line.
What is the difference between AMS and ISF? Who files each?
AMS (Automated Manifest System) is filed by the ocean carrier with CBP at $25-35 per B/L, 24 hours before vessel loading at origin. ISF (Importer Security Filing, or 10+2) is filed by the US importer or their customs broker with CBP, also 24 hours before loading, covering 10 data elements about the transaction and supply chain. Penalties for ISF non-compliance reach $5,000 per violation. The key distinction: AMS is the carrier's obligation (cost passed to shipper), while ISF is the importer's legal obligation.
Can ORC be waived for shipments from South China to the US?
Almost never. ORC is a rigid, industry-standard surcharge on all US/Canada-bound shipments from South China ports (Shenzhen, Guangzhou, Xiamen) at $141/20GP, $189/40GP, $214/40HQ. It is a legacy of the late-1990s zero-rate era and is now baked into every carrier's South China Trans-Pacific tariff. Shipments from Shanghai, Ningbo, Qingdao, or Tianjin do not incur ORC — a structural $141-214 per container advantage for North and East China shippers. When reviewing a South China quote, check that OTHC is not listed separately alongside ORC — this is a common double-charge scenario.
How much extra did the Panama Canal drought add to US East Coast shipping costs?
During the 2023-2024 Panama Canal drought, daily vessel transits fell from 36-38 to 18-24 vessels. Carriers incurred millions in auction slot costs and diversion expenses, which translated to temporary drought surcharges of $100-300 per container on top of standard PCS ($200-400/40HQ). By 2026, canal water levels have partially recovered, but the ACP has introduced a permanent Fresh Water Surcharge. Some carriers now permanently route USEC-bound cargo via the US West Coast with rail intermodal (Mini Land Bridge) to bypass canal costs entirely. An MLB routing may produce a lower total landed cost than an all-water USEC service, depending on your final destination.
What does DDC cover and why is the East Coast more expensive than the West Coast?
DDC (Destination Delivery Charge) bundles: vessel discharge crane operations, terminal yard handling and stacking, storage within the free-time window, chassis usage within the terminal, and gate administration. USWC DDC runs $350-600/40GP; USEC runs $450-800/40GP. The USEC premium comes from higher ILA union labor costs, less efficient terminal layouts (many East Coast terminals date to the early 1900s), and longer chassis turnaround distances within terminal complexes. Canadian ports (Vancouver, Prince Rupert) generally have DDC rates below comparable US ports.
What is the Chassis Fee and why does it only exist in the US?
A chassis is the wheeled trailer frame used to haul a container by truck. In virtually every global port, the chassis is provided with the container at no separate charge. But starting in 2009, US carriers sold their chassis fleets to specialized leasing companies (TRAC Intermodal, DCLI, Flexi-Van). Since then, the container and the chassis are owned separately, and the consignee must rent the chassis at $25-50/day. A shipment typically needs 2-4 days of chassis usage, adding $50-200 per container. This charge is the single most common surprise for first-time US importers. Canada has partial chassis separation but at lower rates and coverage than the US.
When does peak season PSS start on the Trans-Pacific and how much is it?
Trans-Pacific PSS typically starts in early July and runs through late November, covering the Thanksgiving and Christmas retail import cycle. In 2026, carriers began issuing first-round PSS notices at $400-600/40HQ in early July. If Q3 volumes stay strong, second-round increases are likely in August-September. While you cannot fully avoid peak season PSS, you can reduce its impact: book 2-3 weeks before the peak wave hits (rates are typically more moderate in the first weeks of July), negotiate a PSS cap in annual contracts, and ship smaller volumes more frequently during the Q1-Q2 trough to reduce peak-season exposure.
