CargoWise Login

Freight Forwarding & Incoterms: Key Terms Explained in Detail

Discover the essential freight forwarding terms and Incoterms that define responsibilities, risks, and cost-sharing in global trade. This glossary provides clear, practical explanations to help you navigate documentation and operational decisions with confidence.

Minimum Bill of Lading Charge

Last updated: January 19, 2026
M

The minimum bill of lading charge is the lowest amount a carrier or freight forwarder will charge for issuing and handling a bill of lading, regardless of the shipment’s actual weight or volume. Even if the cargo is tiny, this minimum fee applies to cover basic operational, documentation, and administrative costs. It ensures that essential processing expenses are recovered for every shipment.

This charge typically applies to LCL shipments, small air shipments, or low-volume consignments where the calculated freight would otherwise be very low. It covers tasks such as document preparation, system processing, compliance checks, and coordination with carriers and terminals. Without a minimum charge, handling small shipments would often be commercially unviable for service providers.

For shippers, understanding the minimum Bill of Lading charge helps avoid confusion when freight costs seem higher than expected for small consignments. It encourages better shipment planning, such as consolidating cargo where possible. Clear visibility of this charge supports accurate budgeting and transparent freight quotations.

FAQ

Frequently Asked Questions about Minimum Bill of Lading Charge

Clear answers to the most common questions people have when learning about Minimum Bill of Lading Charge.

To cover fixed costs like documentation, system processing, and compliance work that apply to every shipment, regardless of size.

Yes. If the calculated freight is below the minimum threshold, the minimum Bill of Lading charge is applied instead.

Sometimes. High-volume shippers or long-term contracts may receive adjusted minimums, depending on the service agreement.