Port Expenses


What is a Port Cost – And Why Should You Care?
While the cost of fuel and time hire charges for the vessel itself will usually make up the bulk of the expense related to most charter parties, the sum of the individual parts of the port costs which impact every ship call at a particular port can be significant, as well. In fact, ports often lose business to neighboring, competing marine destinations simply because port costs rise too quickly for shippers to absorb. These port costs can be that onerous – and, one way or another – they will impact your freight rates.

During the charter party negotiation process, some general assumptions have to be made with the ultimate objective being to include in the rate calculations realistic allowances for all port cost items which are typically levied against the vessel (for Owners' Account). These charges can be assessed based on any number of variables, including but not limited to the volume of cargo loaded or discharged or as a function of time spent alongside a berth in port.

Specific Examples of Port Costs
Allowances are usually made within the freight agreement itself for vessel items which can include – but are by no means limited to – the following:

• Light Dues, both National and Local
• Pilotage, In and Out
• Docking Masters
• Towage, In and Out
• Terminal Fees/Charges
• Mooring and Unmooring Expenses
• Stand-By Tugs and/or Stand-By Launches
• Conservancy Dues
• Harbor Dues
• Port Dues
• Quay Dues
• Berth Hire
• Tonnage Dues
• Wharfage/Dockage/Berthing
• Launches
• Port Clearance
• Flag State/Classification/Port State Control Inspections/Delays
• Quarantine/Free Pratique Fees
• Customs Surveillance/Attendance
• Customs Overtime
• Sundries and Petties
• Agency
• ISPS (Security) Costs

Port Costs – Using Caution & Limiting Your Exposure
While the potential charterer may have only limited exposure to individual port costs, it is critical to ensure that an allowance has been made for any items that do not fall under one of these broad headings. It can be necessary to make particular items that are levied upon or against the vessel “For Charterers' Account,” which means that because there is no allowance for such an item in the rate, owners may be entitled to obtain reimbursement from charterers for the costs involved. And these expenses can turn a successful cargo trade into a loser, if not attended to and addressed beforehand. Your Soundtanker broker, who is familiar with standard charter party agreements, can provide guidance and protection against unforeseen voyage expenses.