Why there's no single price
Container rates to PNG change with fuel prices, carrier capacity, equipment availability, the season and demand from resource and infrastructure projects. A rate that was right three months ago may be well off today. That's why this guide doesn't quote figures. It shows you how a price is built, so you can check any quote you receive and compare like with like. Rates also differ by origin, so compare routes from Australian ports and Asian hubs before settling on one. For routes, costs and customs together, see our complete guide to shipping to Lae.
The five stages of cost
| Stage | Typical charges | Who usually bills it |
|---|---|---|
| Origin | Pick-up or cartage to the wharf, packing, origin terminal handling, export documentation, export declaration lodgement | Origin forwarder or carrier |
| Ocean | Base freight plus surcharges such as fuel (bunker) adjustment, currency adjustment, peak season or general rate increases | Carrier, often via a forwarder |
| Destination | Terminal handling at Lae, port charges, delivery order and documentation fees, LCL depot fees | Carrier's PNG agent, forwarder, terminal |
| Government | Import duty, excise where applicable, 10% GST, NAQIA permit and inspection fees | PNG Customs, NAQIA |
| Inland and clearance | Customs brokerage, cartage from the wharf, Highlands trucking, security, empty container return | Customs broker, trucking operator |
Most quotes you receive cover only some of these stages. Knowing which ones are missing is how you avoid nasty surprises.
Ocean freight and surcharges
The base ocean rate is what most people mean by the freight cost. On top of it, carriers add surcharges that can move independently of the base rate: fuel adjustment factors that track bunker prices, currency adjustments, peak season surcharges and periodic general rate increases. Some carriers, including Swire Shipping, publish surcharge calculators, which are worth using to sanity-check a quote.
Ask every forwarder to show the base rate and each surcharge separately, and to state how long the quote is valid. An all-in figure is easier to read but harder to compare.
Destination charges in Lae
Destination charges are where quotes differ most. Expect terminal handling at SPICT, port-related charges, a delivery order or documentation fee from the carrier's agent and, for LCL, depot and unpacking fees. PNG Ports Corporation's charges at Tier 1 ports, which include Lae, are subject to maximum allowable tariffs regulated by the Independent Consumer and Competition Commission (ICCC). Those caps don't cover every charge in the chain, but they're a useful reference point.
Destination charges are usually billed to the consignee regardless of what the Australian or Asian shipper paid. If you're buying on CIF terms, ask your supplier for a copy of what's included, or you may find the destination side priced at whatever the market will bear. Our article on hidden shipping fees in PNG covers the charges that most often appear late.
Duty, excise and GST
Government charges are often the largest single line, and they're calculated on the CIF value, so they rise with the freight cost. Many goods attract little or no import duty, but protective rates apply to goods that compete with local industry, and excise applies to items such as vehicles, alcohol, tobacco and fuel. GST at 10% applies to most commercial imports. Duties are payable within five clear working days of the Notice of Assessment, and late payment attracts interest. See how to calculate PNG import duty, excise and GST.
How to read a quote
Use this checklist on every quote:
- What are the origin and destination points? Door, CFS, or port?
- Which Incoterm does it assume, and which stages are included?
- Are surcharges listed individually and are they fixed or subject to change?
- What currency is each line in? Quotes often mix AUD, USD and PGK.
- How many free days apply for demurrage and detention at Lae?
- Are customs brokerage, NAQIA handling and cartage included, or excluded?
- Is marine insurance included, and on what basis?
- How long is the quote valid, and is it subject to space and equipment?
Tip: ask each forwarder to price the same scenario, for example one 20 ft general-purpose container, Brisbane door to Lae door, cleared and delivered. Anything else and you're comparing apples with pawpaws.
Currency and payment
Ocean freight is often quoted in US dollars, Australian origin charges in Australian dollars and PNG destination charges in kina. That creates currency exposure, especially for importers paying in kina. Agree which party carries the exchange risk and when rates are fixed. For customs purposes, the value of the goods is converted to kina for assessment; your customs broker will tell you the exchange rate applied.
What you can actually control
You can't control fuel prices, but you can influence equipment choice, timing, packing efficiency, documentation quality and how fast you clear and return containers. Those factors often matter more than a small difference in ocean rates. Our guide to reducing shipping costs to Lae goes through them, and our FCL vs LCL comparison helps you choose the right equipment.
Frequently asked questions
How much does a 20 ft container to Lae cost?
It varies with the origin, season, fuel prices and carrier capacity, so any fixed figure would date quickly. Get at least two or three quotes for the same door-to-door scenario and compare the total landed cost.
Why are destination charges in Lae so high on some quotes?
Destination charges are billed locally and vary between agents and forwarders. Some are capped by ICCC-regulated port tariffs, but others aren't. Buying on FOB terms with your own forwarder gives you more visibility.
Are PNG duties calculated on the freight as well as the goods?
Yes. PNG uses the CIF value, which includes the cost of the goods, insurance and freight, as the basis for customs duty.
Wade Miller
Senior Air Freight Writer, Sydney
Wade has spent more than 20 years in freight, from cargo terminal ramps to forwarding operations and customs documentation, working with importers and exporters across Australia and the Asia-Pacific. He writes practical guides on rates, paperwork and the rules that affect shipments, and reviews them against primary sources such as customs authority publications and carrier notices.
Related guides
Back to the complete guide to shipping to Lae
This guide is general information based on publicly available sources at the date shown. Rules, rates and schedules change, so confirm details with PNG Customs, NAQIA, your carrier or a licensed customs broker before you ship. Spotted something out of date? Report a correction.