Reading a freight invoice, line by line
By Freightflow Team
A forwarder's export invoice can run to a dozen lines, and customers often query the ones they do not recognise. Knowing what each charge is for makes both the invoice and the conversation about it easier.
What does each line on a freight invoice mean?
| Line | What it covers |
|---|---|
| Ocean freight | The carriage itself, often quoted in US dollars and converted at a stated rate |
| Terminal handling charges (THC) | Moving the box within the terminal at origin |
| BL or documentation fee | Issuing the bill of lading |
| Seal charge | The line's seal |
| Surcharges | Additions by the line, such as for fuel or peak season |
| ICD handling | Handling at the inland container depot |
| Rail freight | The rail leg from the ICD to the gateway port |
| Road transport | The truck from the factory to the ICD |
| Detention and demurrage | How long the box was out or waiting, beyond its free days |
Inland charges
For inland exporters, ICD handling, rail freight and road transport are each a real move with its own date, which is why they are easiest to bill when they are recorded as the moves happen.
Time-based charges
Detention and demurrage depend on how long the box was out or waiting, beyond its free days. They are the lines most often disputed, so it helps to show the dates and free days the amount was calculated from.
Every line on an invoice should be traceable to a move, a document or a rate.
Taxable services and reimbursements
Not every line is treated the same way for GST. A forwarder's own services are taxable. Amounts paid on the customer's behalf can be excluded from the taxable value when the forwarder acts as a pure agent and the conditions in the GST valuation rules are met. Getting the classification right per line matters, because it decides the tax on the invoice and what can be registered on the IRP.
See it on your own documents
Book a walkthrough and we'll run Freightflow on your real booking confirmations and bills.