LSS
Low Sulphur Surcharge
LSS is a surcharge that shipping lines add to cover the extra cost of low-sulphur fuel, which ships must use under international rules at sea.
In plain words
Under the IMO rules known as “IMO 2020”, ships must burn fuel with much less sulphur than before, or clean their exhaust. In some sea areas, called emission control areas, the limit is even stricter. Low-sulphur fuel costs more, and shipping lines pass part of that cost to shippers through the LSS.
Some lines show the LSS as its own line on the invoice. Others include it in the BAF (the fuel surcharge). The amount can change from month to month with fuel prices. When you compare quotes, check whether the LSS is already included or will be added later.
Example from real shipping
An importer compares two quotes for a container to Mersin. One says “all-in”, the other lists base freight and BAF only. The importer asks the second line about LSS and learns that it will be added on the invoice. Now the two quotes can be compared fairly.
Related terms
- BAFBAF is a surcharge on sea freight that covers changes in the price of ship fuel (called bunker).
- CAFCAF is a surcharge on freight that protects the carrier against changes in exchange rates.
- THCTHC is a charge for handling a container at the port terminal, for example lifting it on or off the ship and moving it in the yard.
- Landed costLanded cost is the total cost of getting a product to your door: the price of the goods plus freight, insurance, duties, taxes, and all other fees on the way.
Have a shipment in mind?
Tell us about your cargo, and we will explain the documents and costs for your route.
Request a QuoteThis glossary is general information, not legal or customs advice. Rules, fees, and practice can differ by carrier, port, and country.