FUEL SURCHARGE AND SECURITY SURCHARGE IN AIR FREIGHT
Air-freight quotations are often compared by the base rate per kilogram while Fuel Surcharge and Security Surcharge are left outside the first calculation. These charges may be assessed on chargeable weight, subject to an AWB minimum, revised by airline, route and effective date, or bundled into an Airfreight Surcharge or an all-in rate. A low base rate can therefore produce a higher total cost, while adding separately quoted FSC or SSC to a genuinely all-in rate creates double counting. This article explains the commercial nature of FSC and SSC, distinguishes a security surcharge from an X-ray or screening fee, provides calculation controls, identifies the data required in an RFQ and sets out a method for comparing quotations on an equivalent scope.
QUICK FACTS
FSC and SSC are commercial charges under the carrier or forwarder tariff; there is no single rate for every airline and trade lane.
Many tariffs use chargeable kilograms, but minimum, per-AWB, actual-weight or station-specific rules may apply.
A carrier security surcharge and an X-ray/screening service fee can be separate charges.
Some airlines bundle fuel and security into an all-in or airfreight surcharge. Do not add them again when inclusion is confirmed.
SCOPE OF APPLICATION
This article applies to international air cargo moving under MAWB/HAWB, particularly general cargo quotations priced by chargeable weight. It does not replace local terminal handling, DGR, temperature-control, customs, trucking or tax tariffs in a specific jurisdiction.
FSC and SSC can appear under different names or charge codes. One carrier may show separate fuel and security surcharges; another may use a combined airfreight surcharge; an “all-in” offer may still exclude screening, terminal or special-handling charges.
TERMS AND DEFINITIONS
| Term | Meaning | Quotation role |
|---|---|---|
| Fuel Surcharge (FSC) | A commercial fuel-related surcharge, shown under a carrier name or charge code. | Recovers part of fuel/operating cost volatility under the applicable tariff. |
| Security Surcharge (SSC) | A security-related surcharge set by a carrier or service provider. | It does not automatically mean that physical screening is included. |
| Screening/X-ray Fee | A fee for X-ray, ETD or another suitable security screening method. | May arise where cargo is not tendered with an acceptable security status or where the station requires screening. |
| Chargeable Weight | Normally the higher of gross weight and volumetric weight. | A common basis for air freight and per-kilogram surcharges. |
| Minimum Charge | The minimum amount assessed for a charge or AWB. | The minimum may replace a lower weight-based result. |
| All-in Rate | A rate bundling specified components. | It never means every possible logistics cost; exclusions must be read. |
| Due Carrier / Due Agent | AWB charge groups attributed to the carrier or agent. | Helps reconcile the AWB and debit note presentation. |
COMMERCIAL MECHANISM
1. FSC is not a universal fuel tax
FSC is a commercial pricing component. A carrier may revise it by fuel market, lane, origin, commercial policy and effective date. The mechanism also depends on the market. For example, for cargo departing Hong Kong from 1 January 2025, each airline may set its own CFS or choose not to levy it. Some carriers also replace separate FSC with an airfreight surcharge or all-in pricing.
2. Security surcharge and screening fee serve different pricing functions
Air cargo security includes security-status creation, protection of screened cargo, risk assessment, screening and an audit trail. A tariff’s “Security Surcharge” may therefore differ from a “Security Fee”, “X-ray Fee” or “Screening Charge” for a specific service.
3. Three common quotation structures
- Separated: air freight + FSC + SSC.
- Partly bundled: air freight + airfreight surcharge incorporating fuel/security elements.
- Conditional all-in: fuel/security included, while terminal, screening, DGR, pickup/delivery or taxes remain excluded.
HOW TO CALCULATE FSC AND SSC
FSC = max(FSC unit rate × tariff weight basis; FSC minimum, if any).
SSC = max(SSC unit rate × tariff weight basis; SSC minimum, if any).
Separated structure = Air Freight + FSC + SSC + excluded charges.
Bundled-surcharge structure = Air Freight + Airfreight Surcharge + excluded charges, only where the tariff confirms that the Airfreight Surcharge replaces or includes FSC/SSC.
All-in structure = All-in Rate + expressly excluded items; do not add confirmed included FSC/SSC again.
Do not assume that FSC and SSC use the same weight basis. The tariff may specify chargeable weight, actual weight, per AWB, per shipment or a separate minimum. Check weight rounding, currency, exchange rate and effective-date rules.
Integrated quotation check
A shipment has 120 kg gross weight and 150 kg volume weight, giving 150 kg chargeable weight. Illustrative rates are air freight USD 3.20/kg, FSC USD 0.55/kg and SSC USD 0.12/kg, with no higher minimum.
| Charge | Basis | Illustrative calculation | Amount |
|---|---|---|---|
| Air Freight | 150 kg chargeable weight | 150 × 3.20 | USD 480.00 |
| Fuel Surcharge | 150 kg chargeable weight | 150 × 0.55 | USD 82.50 |
| Security Surcharge | 150 kg chargeable weight | 150 × 0.12 | USD 18.00 |
| Three-component total | Excluding local/terminal | 480 + 82.50 + 18 | USD 580.50 |
The example demonstrates method only and is not a market tariff.
COMPARISON OF FSC, SSC AND SECURITY-RELATED FEES
| Charge | Possible collector | Common basis | Question to ask | Double-count risk |
|---|---|---|---|---|
| Fuel Surcharge | Carrier; a forwarder/GSA may pass through, collect or resell under its quotation | Per kg, minimum, or bundled | CW or actual weight? Which effective date? | Adding FSC to an all-in rate. |
| Security Surcharge | Carrier; a forwarder/GSA may re-present it under its quotation | Per kg, minimum, per AWB | Does it include screening? | Treating all security charges as one. |
| Screening/X-ray Fee | Carrier, GHA, terminal or screening facility | Per kg, piece, AWB or minimum | Is cargo already secured? | Removing it merely because SSC appears. |
| Airfreight Surcharge | Carrier | Per kg or carrier formula | Does it replace fuel/security? | Adding separate FSC/SSC again. |
| Terminal/Security Handling | GHA/terminal | Per kg, shipment or minimum | Outside AWB or via debit note? | Comparing carrier-only with airport-inclusive scope. |
DOCUMENTS AND DATA TO CHECK
| Document/data | Issuer | Purpose | Fields to reconcile |
|---|---|---|---|
| Rate Sheet/Tariff | Airline/forwarder | Unit rate, minimum, currency, validity. | Origin, destination, carrier, product, routing. |
| Quotation | Forwarder/GSA | Included/excluded service scope. | Air freight, FSC, SSC, terminal, screening. |
| Booking Confirmation | Carrier/forwarder | Flight, route, product and rate condition. | AWB, CW, cut-off and validity. |
| MAWB/HAWB | Carrier/forwarder | Chargeable weight and other charges. | Gross/volume/CW; prepaid/collect; due carrier/agent. |
| Weight & Dimension Record | Shipper/warehouse/GHA | Final chargeable-weight determination. | Packed dimensions, pieces and units. |
| Debit Note/Invoice | Carrier/forwarder/GHA | Estimated-to-actual reconciliation. | Charge code, unit rate, minimum, tax, currency. |
| Security Status/CSD where applicable | Security actor | Secured status and audit trail. | Who secured cargo, when and by which method. |
QUOTATION REVIEW PROCESS
- Lock shipment profile: pieces, gross weight, dimensions, commodity and special-cargo status.
- Calculate chargeable weight: record provisional and final CW.
- Request a price breakdown: air freight, FSC, SSC, screening, terminal and minimums.
- Confirm pricing model: net, all-in or airfreight surcharge; prevent duplication.
- Check validity trigger: quotation, booking, AWB issue, acceptance or departure date.
- Check security status: secured cargo, screening and transit re-screening requirements.
- Normalize quotations: same carrier, routing, product, CW, currency and scope.
- Reconcile after acceptance: use final dimensions and debit note to calculate variance.
RISKS AND COMMON ERRORS
| Error | Cause | Impact | Control |
|---|---|---|---|
| Comparing base rate only | Surcharges not itemized. | Higher total-cost option selected. | Compare total on the same CW and scope. |
| Using gross weight for FSC/SSC | Volume weight ignored. | Debit note exceeds budget. | Lock CW before approval. |
| Adding charges to all-in rate | Included items not read. | Double counting. | Obtain written confirmation. |
| Assuming SSC includes X-ray | Surcharge confused with service fee. | Screening/terminal omitted. | Ask separately about security status and screening. |
| Using expired tariff | Cargo ready after validity. | FSC/SSC repriced. | Set a revalidation milestone. |
| Ignoring minimum | Small shipment priced only per kg. | Actual charge higher. | Record each minimum. |
| Comparing different routing/product | Direct and transit offers mixed. | Lead-time and risk mismatch. | Normalize carrier, routing and product. |
OPERATIONAL SOURCES
FSC and SSC are primarily governed by carrier tariffs, rate sheets and commercial conditions; no international instrument sets one universal amount. The sources below explain the mechanism but do not replace a shipment-specific quotation.
| Source | Issuer | What it confirms | Use |
|---|---|---|---|
| Air Cargo Tariffs and Rules / TACT | IATA | Gross/volumetric weight pricing and access to tariff/rule information. | Weight basis and market tariff framework. |
| Cargo Security / CSD | IATA; ICAO | Security controls, audit trail and screening concepts. | Separate compliance status from screening service. |
| Charges & Fees – January 2026 (V101) | Lufthansa Cargo | Version supplied through the official Rates & Conditions page on the review date of 17 July 2026; it shows Airfreight Surcharge and conditional security/screening fees by station. | Example of separated/bundled and local charges. |
| Other Charge Codes | Lufthansa Cargo/IATA codes | MY Fuel Surcharge, SC Security Surcharge, SF Security Fee and XR X-ray surcharge. | Shows that “security” may involve distinct charges. |
| General Terms and Conditions | Qatar Airways Cargo | Certain published rates are described as all-in including fuel and security. | Prevents adding FSC/SSC twice. |
| Hong Kong Export Cargo Fuel Surcharge | Cathay Cargo | From 1 January 2025 airlines may set or waive CFS for Hong Kong exports. | Illustrates carrier/market-specific FSC. |
FAQ
Is FSC always charged on chargeable weight?
No. Chargeable kilograms are common, but a tariff may use actual weight, per AWB, a minimum or another rule.
Does SSC include cargo screening?
Not necessarily. Confirm whether screening, X-ray, terminal security or transit re-screening is included.
Can an all-in rate still generate FSC or SSC?
Do not add them when inclusion is confirmed, but terminal, screening, DGR and local charges may remain excluded.
Can FSC change after booking?
Yes, depending on whether the rate is locked by quotation, booking, AWB issue, acceptance or departure date.
Can HAWB and MAWB show different surcharge structures?
Yes. A forwarder may sell under its own structure while the airline charges the MAWB under its tariff.
Should a small shipment use rate × kg?
Only when no higher minimum applies. Check minimum per charge and per AWB.
Are FSC and SSC local charges?
They are normally linked to air carriage, but the billing location and invoice presentation can vary. Classification must follow the tariff and scope.
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