Your eyes and hands in India · Est. 2019 · Replies within one working day

Why does DG freight cost more, and what drives the surcharge?

DG freight costs more because fewer vessels, terminals and carriers take it, and every step needs extra handling, checks and liability cover. The class drives most of it.

· 3 min read · Creston & Co

Dangerous goods freight costs more because it is harder to carry. Fewer vessels and terminals can take it, it needs extra checks and handling at each step, and the carrier takes on more risk. Shipping lines recover this through a DG surcharge on top of the base freight, plus extra local charges.

The size of the difference depends mainly on the class, the route and the ports. A real quote for your product and lane comes only from a forwarder with the full SDS and booking details.

What drives the DG surcharge

  • The hazard class and packing group. Higher-hazard classes and packing group I goods face more restrictions and usually higher surcharges.
  • Stowage limits on board. Some classes must be stowed on deck, away from heat or living quarters, or separated from other cargo, which uses space the line could sell to other shippers.
  • Limited DG slots per vessel. When DG space on a sailing is scarce, the price of what remains rises.
  • Fewer carriers on the route. If only a few lines accept your class on your lane, there is less competition.
  • Transhipment rules. Each hub port can add its own DG handling charges, or force a longer or more expensive routing.
  • Insurance and liability. Carriers price in the higher risk of damage, clean-up and claims.

Local costs at origin and destination

The surcharge on the ocean freight is only part of the extra cost. Terminals often charge more to handle DG containers, and some require direct delivery to the ship, which means tighter trucking windows. DG containers may face shorter free time and higher storage charges in port.

There are also preparation costs. UN-approved packaging, DG labels and placards, trained staff to prepare declarations, and sometimes a surveyor at stuffing all add up. At destination, DG containers may need special yards, trucks and permits.

How to keep DG costs under control

  • Check the transport classification early. A product wrongly assumed to be DG costs you money; one wrongly assumed to be non-DG can cost far more in penalties. See what DG cargo is.
  • Ask whether a change of form changes the class. A different concentration or physical form can sometimes move a product to a lower packing group or out of DG altogether, though that must be backed by data.
  • Fill containers fully to spread fixed DG costs over more product, within weight limits.
  • Compare more than one line and routing, since not all lines accept DG cargo on the same terms.
  • Choose the Incoterm with care, so you know who pays which DG charges. Our guide to FOB, CIF or DAP explains the split.

Next step

We cannot quote freight here, but we can make sure your product is classified, packed and documented correctly, which avoids the most expensive surprises. To start, book a free sourcing review.

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