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A comprehensive guide to shipping surcharges in Indonesia

August 7, 2024 6 Mins Read

Whether you're spearheading a burgeoning e-commerce venture or navigating the complexities of a drop shipping enterprise, one of the best ways to optimise a business lies in managing shipping costs. These costs are not just operational details, they have a direct impact on your profit margins.

Understanding the intricacies of shipping rates is a strategic move that can help you get more out of your business. From fuel surcharges to remote area delivery, handling fees and more, this guide will uncover the various types of surcharges in shipping for domestic and international deliveries in Indonesia. With this knowledge, you’ll be able to develop more cost-effective shipping strategies for your business.

What is a shipping surcharge fee?

A shipping surcharge fee is an additional charge applied to a shipment on top of the standard DHL domestic or international shipping rates. This fee compensates for specific conditions affecting delivery, such as remote areas or the need for special handling when shipping dangerous goods, ensuring that domestic shipping within Indonesia and overseas shipping reflect the true costs of delivery.

DHL Express shipping surcharges

Fuel surcharge

Delivery fuel surcharges are an essential component of shipping costs, implemented to account for the variable and often unpredictable changes in fuel prices. They ensure that transportation and logistics services can continue to operate effectively despite the volatility of global oil markets.

For international shipments, fuel surcharge is calculated based on the daily average spot prices for US Gulf Coast (USGC) kerosene-type fuel. This surcharge is added to DHL’s international shipping rates and may be layered on top of other surcharge categories, such as increased demand, remote area delivery and more.

In February 2024, the current DHL international fuel surcharge is 28.25%. This means if the base rate of fuel is US$2.50, a fuel surcharge of US$0.70 will be applied per shipment.

Dangerous goods surcharge

Shipping dangerous goods requires specialised knowledge and additional precautions. DHL Express adds a dangerous goods (DG) shipping surcharge to the following cargo in order to ensure safety and compliance with regulatory standards.

Full Dangerous Goods: A surcharge of IDR 1,630,000 per shipment is applied for the transport of substances and commodities classified as fully regulated in accordance with the International Air Transport Association’s (IATA) Dangerous Goods Regulations.
Excepted Quantities: When shipping dangerous goods in smaller quantities that meet IATA exceptions, a fixed charge of IDR 486,500 per shipment is applied.
Dry Ice (UN1845): For shipments requiring dry ice as a cooling agent, such as medical samples, a surcharge of IDR 195,500 per shipment applies.
Lithium Batteries: A fixed surcharge of IDR 139,000 will be applied to shipments of lithium-ion batteries with equipment due to the complex handling and packaging standards required by IATA regulations.

Remote area service surcharge

Remote areas present unique logistical challenges due to their distance or difficulty of access, which is why a remote area delivery surcharge is applied. This surcharge covers the additional costs incurred by DHL Express to deliver or pick up shipments from these locations. In Indonesia, the shipping surcharge for remote areas is IDR 342,000 per shipment or IDR 5,000 per kg, whichever cost is higher.

Security service surcharge

The security service surcharge is imposed when shipping to or from countries at elevated risk due to factors like war, civil unrest, or threats of terrorism. It addresses the increased danger and additional security measures required. DHL Express Indonesia levies a surcharge of IDR 489,000 for elevated-risk destinations.

There is also a surcharge of IDR 450,000 for shipping to restricted destinations, which applies when shipping or importing from countries subject to trade restrictions imposed by the UN Security Council. This surcharge is due to the added complexity of ensuring shipments comply with said trade restrictions.

The countries affected by DHL’s security service surcharge are subject to change, and an updated list can be found on the DHL Surcharge page.

Data correction surcharges

Data correction surcharges are added on top of shipping and mailing service costs when addresses need to be corrected or when a shipment requires data entry due to being consigned with paper-based manual house waybills.

For instances where DHL needs to search and determine the correct address to complete a delivery due to incomplete or outdated information by the shipper, a fixed surcharge of IDR 180,700 per shipment is levied.

For data entry of paper-based waybills, a surcharge of IDR 163,000 per shipment is added.

Additional handling surcharges

DHL Express Indonesia imposes additional handling surcharges for shipping bulky items that are unusually heavy or large, as well as for those that cannot be stacked. These surcharges are:

Overweight piece: An international shipping surcharge of IDR 1,400,000 or domestic surcharge of IDR 700,000 is applied for each item over 70 kg.
Oversize piece: An international shipping surcharge of IDR 775,000 or domestic surcharge of IDR 300,000 applies to any piece exceeding 120 cm in a single dimension. This surcharge does not apply to pieces already subject to overweight surcharges.
Non-stackable pallet: An international shipping surcharge of 4,000,000 or domestic surcharge of 2,200,000 is added for pallets within a shipment that cannot be stacked due to their shape, content, or packaging.

Emergency situation surcharge

Emergency situation surcharges are imposed by DHL during unforeseen events that disrupt the usual flow of services, leading to additional operating costs. These are implemented to ensure that service continuity is maintained even when market dynamics and air capacity are affected by such events.

For updated information on emergency situation shipping surcharges, visit the DHL Emergency Situation Surcharge page.

Demand surcharge

Demand surcharges come into effect during periods of high demand, as determined by DHL at its own discretion. These shipping surcharges are applied to manage the increased operational costs and the high volume of shipments, ensuring service quality and reliability are upheld during peak times.

Tips for optimising shipping surcharges

Now that you’re aware of the various types of surcharges in shipping, follow these best practices and steps to avoid incurring unnecessary costs.

Pack smart: Adhere to DHL Express’ packaging guidelines to avoid oversized and overweight handling surcharge fees.
Provide accurate information: Check that you are providing correct and complete shipping details in your forms, and make use of online forms to prevent data correction or data entry charges.
Consolidate shipments: Group your items and ship them in bulk, which helps to distribute the cost of fuel surcharges across a large volume of goods to reduce your per-unit shipping cost.
Use DHL Express’ cost-estimation tools: Get a free shipping quote with DHL Express for domestic and international shipments to estimate costs upfront.
Stay updated: Keep abreast of changes in surcharge rates by visiting DHL Express surcharge page regularly.

Streamline your shipping strategy With DHL Express

Understanding and managing the various shipping surcharges are key steps towards cost-effective shipping rates and better margins for your business in Indonesia. For best results when shipping internationally, consider partnering with a shipping agent with clear, transparent fees so you’ll never be caught out by unexpected expenses.

With a clear understanding of DHL Express and its various shipping surcharges, Indonesian businesses can make smarter decisions to mitigate unexpected costs and bolster their bottom line. Sign up for a DHL Express business account today and explore solutions to fit your shipping needs.