When a quotation includes a fuel surcharge, the buyer needs to know how it is calculated and whether it changes the approved total. Labels such as BAF, FSC or fuel surcharge are not enough: read the quotation provider's applicable terms.
The following guide helps purchasing and logistics teams request written confirmation for an individual shipment.
1. Which transport leg does the charge cover?
Ask whether it covers ocean freight, air freight or inland transport. If the quotation includes several providers or legs, ask which service each charge belongs to.
Two lines containing “fuel” are not automatically duplicates. Compare their scope first. If they cover the same leg and calculation basis, ask the provider to explain.
2. What are the calculation basis and unit?
Request the amount, currency and unit: per container, per shipment, per weight unit, or a percentage of a specified freight amount. For percentage charges, identify the amount to which the percentage applies.
In a hypothetical example, a 10% surcharge on USD 1,000 is USD 100. If the provider uses USD 1,300 as the basis, it becomes USD 130. Two quotations stating “10%” are not necessarily equivalent. These figures illustrate arithmetic, not market rates.
3. Is the charge already included?
Ask for an explicit “included” or “excluded” entry in the quotation. Even an all-in price should identify the items within the total and any exclusions.
| Comparison item | Quotation A | Quotation B |
|---|---|---|
| Transport scope | Legs and collection/delivery points | The same scope |
| Base freight | Amount, currency and unit | Amount, currency and unit |
| Fuel charge | Included/excluded; calculation basis | Included/excluded; calculation basis |
| Other required charges | Itemised list | Itemised list |
| Validity and adjustments | Dates and specific conditions | Dates and specific conditions |
Add and compare costs only after aligning cargo quantity, scope and currency, using an agreed exchange rate if necessary.
4. Which milestone determines the applicable date?
Ask more than when the quotation expires. Confirm whether booking, cargo receipt, loading or departure determines the fuel surcharge.
If the schedule changes, obtain confirmation of which charges remain fixed and which need a new quotation. A confirmed booking does not by itself establish that every charge is fixed.
5. What document or notice supports the charge?
Request the charge name, issuing provider, update date and the notice section applicable to the purchased service and route. Keep the relevant commercial confirmation for any individually negotiated amount.
Maersk's standard BAF appendix illustrates a formula using fuel prices and a trade factor. It shows why the calculation basis matters; it does not set another provider's tariff. Maersk BAF appendix.
6. What changes are permitted after approval?
Ask how a new charge will be communicated, when it takes effect and who can confirm the change. Read the actual terms for the review frequency; do not assume every provider or leg follows the same schedule.
For internal budgeting, separate confirmed amounts from pending items. If you allocate a contingency, identify it as your own reserve, not a surcharge announced by the transport provider.
7. Who confirms the final total?
Assign one contact to collect the quotation, appendices and change emails. Before approval, record the version, update date and outstanding information so finance and operations use the same figures.
A confirmation message you can copy
Please confirm quotation [reference/date] for shipment [reference]: which leg the fuel surcharge covers, its unit and calculation basis, whether it is included in the total, the milestone determining its effective date, and the adjustment conditions if the schedule changes. Please provide the applicable supporting notice and an updated total, identifying any items still awaiting confirmation.
To discuss a quotation with SeaAir Global, send shipment details, including collection/delivery points, cargo type, package count, weight, dimensions and cargo-ready date. These details help establish the scope to compare before approving costs.
