What is a Freight Quote and How Do You Compare Them?

What is a Freight Quote?

A freight quote (or freight quotation) is a document from a freight forwarder or carrier showing the estimated or fixed cost of transporting your cargo. A complete, transparent freight quote should show every charge involved in moving your goods from origin to destination — not just the headline ocean freight rate.

Components of a Complete Freight Quote

Origin charges: Export customs clearance, trucking from supplier to port, origin terminal handling (THC), documentary charges, certificate of origin fees. These are incurred before the cargo even leaves the country.

Ocean freight: The base charge for the sea portion. For FCL, quoted per container. For LCL, per CBM/tonne.

Surcharges: BAF (fuel), PSS (peak season), ECA, CAF (currency adjustment). These are carrier-mandated and typically non-negotiable.

Destination charges: Destination THC, customs clearance, import duties (you pay direct to customs, not to forwarder), delivery to warehouse (drayage), container demurrage if applicable.

Additional services: Cargo insurance, fumigation certificate, pre-shipment inspection.

Why the Cheapest Quote is Rarely the Cheapest

The most common trick in freight quoting: show a very low ocean freight rate and bury all the real costs in "local charges" or "additional fees" disclosed later. A $500 headline rate with $800 in destination charges beats a $900 headline rate with $200 destination charges. The only fair comparison is total all-in cost, door to door.

How to Compare Quotes Correctly

Step 1 — Use the same scope: Ask all forwarders to quote on exactly the same basis — same Incoterms, same origin point, same destination point, same services included.

Step 2 — List all charges: Create a spreadsheet with every line item from each quote. Add them up separately before comparing total.

Step 3 — Clarify what is not included: Ask each forwarder "what charges are NOT included in this quote?" The answer reveals hidden costs.

Step 4 — Check transit time: A quote that saves $200 on a 40-day transit vs a $200 more expensive quote with 25-day transit may not be cheaper when you factor in inventory holding costs.

Step 5 — Assess service quality: Ask about tracking, communication standards, and what happens if there is a problem. Price is not everything.

Red Flags in Freight Quotes

• No itemised breakdown — just a total number
• "Subject to change" on too many line items
• No mention of local/destination charges
• Very low freight rate but no mention of surcharges
• Quote valid for only 24–48 hours (pressure tactic)

Frequently Asked Questions