Icon Logistics

Pricing transparency

How Icon Quotes Are Built

We do not hide rate components behind a single number. Here is exactly how a freight quote is constructed, what moves the price up or down, and what we control versus what the carrier and the destination control.

A freight quote that says "$2,400 to Lagos" tells you almost nothing. The price is built from four to seven distinct components, half of them controlled by the carrier or destination customs, and any one of them can shift between the day you ask and the day the cargo sails. We line them up in every quote so you can see what is fixed, what is variable, and what we can negotiate on your behalf.

The seven components of an ocean freight quote

1. Origin inland (US side)

Trucking from the pickup ZIP to the loading port. Fixed for the booking. We control the carrier choice and we own the lane reliability.

2. Origin handling charges

Terminal handling (THC), ISPS, dock receipt, and AES/ITN filing. Flat per shipment, predictable, set by the terminal.

3. Ocean freight (base rate)

Per CBM (LCL), per container (FCL), or per cubic/linear meter (RoRo). The carrier publishes a base rate that holds for 2-4 weeks at a time.

4. Surcharges (BAF, CAF, war risk, peak season)

BAF (bunker adjustment factor) tracks fuel cost. CAF tracks currency. War risk applies to certain lanes. Peak season surcharge applies Q3-Q4 on hot lanes. These move week to week.

5. Destination handling

Terminal handling at the destination port. Flat per container or per shipment, set by the local terminal.

6. Destination customs duty & VAT

Paid by the consignee, not by Icon. Calculated on the CIF value × duty rate × age coefficient (for vehicles). We give an estimate; only the destination customs sets the final number.

7. Optional: cargo insurance, door delivery, clearance fees

Insurance: 0.5-1.5% of declared value. Door delivery and clearance: priced per booking.

What moves the price between bookings

Carrier capacity

When the carrier is full on a lane, rates rise and bookings tighten. We have multiple carrier relationships per lane to keep options open.

Bunker (fuel) cost

BAF moves with global oil prices, recalculated monthly or quarterly. A $20/barrel move can shift LCL rates 5-15%.

Seasonality

Q4 is peak for most Africa lanes (back-to-school, year-end imports). Q1 is softest.

Lane disruption

Suez closure, Panama drought, port congestion at Lagos or Tema - these reroute vessels and add transit time and cost.

Cargo type & documentation

Hazardous, oversize, or refrigerated cargo carries surcharges. Missing or incorrect docs cause demurrage at destination.

Equipment availability

Container shortage in West Africa hubs occasionally inverts pricing - exports from there get cheap, imports there get expensive.

What Icon controls vs. what we don't

ComponentWho controls itCan we negotiate?
Origin truckingIconYes - we shop carriers
Origin handlingTerminalLimited
Base ocean rateCarrierYes - volume-based
SurchargesCarrier (regulated)No - fixed industry-wide
Destination handlingLocal terminalLimited
Customs dutyDestination customsNo - set by law
InsuranceUnderwriterYes - rate by cargo

Quotes that hide this structure tend to be hiding margin. Quotes that show it tend to be quotes you can compare apples-to-apples against another forwarder.

Why our quote may differ from a competitor's

A competitor quote that comes in 30% lower than ours is usually one of three things:

  • Missing a component. Often destination handling or insurance is omitted, and the consignee pays it on the back end.
  • Old rate. A rate that was valid six weeks ago will not load today's cargo.
  • Different scope. Door-to-door vs. port-to-port, with vs. without insurance, RoRo vs. container - these are not the same shipment.

When you get a competing quote, send it to us. We will line it up against ours component by component and tell you exactly where the gap is.

Get a transparent quote.

One business day. Every line item shown. No surprises at destination.

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