x Are you wondering what ISPS fee is for shipping goods by sea?
x Are you interested and want to learn about the role, origin, and factors affecting ISPS surcharges?
x Do you want to know how many ISPS surcharges there are and how ocean freight is calculated?
at Proship.vn will answer the question: What is ISPS fee? What is the role of ISPS fees in import and export? Who must pay the ISPS surcharge? Which factors directly affect the ISPS surcharge in maritime transport?...right next.
What is ISPS fee and origin? How many types of ISPS fees are there? Who pays the fee?
Join Proship to find out what the ISPS fee is, how many types of ISPS fees there are and who must pay the following ISPS fees:
What is the ISPS surcharge?
In the shipping logistics industry, along with AMS, EBS, THC surcharges, etc., ISPS fees are also important surcharges that every shipper needs to pay attention to. So, what is ISPS fee?
ISPS stands for "Intl Security Port Surcharge", also known as International Port Security Surcharge. This type of surcharge is applied to ensure security for shipping lines, goods and sailors when transporting goods by sea.
ISPS applies to:
- Passenger ships;
- Cargo ships of 500 tons or more;
- Mobile drilling unit;
- Port areas serve the above objects in international traffic.
The introduction of ISPS fees
ISPS is the Security Code applicable to international seaports and ships. ISPS was born based on the efforts of many countries with the common purpose of preventing terrorism.
This law includes recommendations and mandatory regulations to enhance maritime safety and combat terrorism. ISPS was issued by the International Maritime Organization in 2002 at a conference held in London. This is also considered part of the Safety of Life at Sea Convention (SOLAS).
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How many types of ISPS fees are there?
There are two common types of ISPS fees:
- Carrier Security Fee:
Collected by shipping lines or carriers to offset costs incurred during ISPS implementation.
- Terminal Security Charge:
Collected by ports from shipping lines or carriers to cover port security costs.
Who pays the ISPS fee?
The shipping company is the person who will collect the ISPS and usually, the person who paid for the person or the business is responsible for these fees when sending or receiving goods at the port. But this may vary depending on the shipping contract and agreement between the parties related.
How important is the role of the ISPS surcharge?
The ISPS (International Ship and Port Facility Security Code) plays an important role in ensuring the security of the global shipping industry:
Promote shared responsibility
ISPS stipulates the responsibilities of stakeholders, including the Government, seaports, shipping lines and goods owners, in ensuring maritime security. From there, it helps to raise the sense of responsibility of the parties involved, contributing to creating a safe and effective sea transport environment.
Establish a standard security framework
ISPS creates a global maritime security system, making it easier for countries to evaluate and control the security level of the port. Thanks to this unity, countries can effectively coordinate in preventing hazardous behaviors and general security protection.
Enhance information exchange
ISPS promotes the sharing of security information among countries, seaports and shipping lines. This information exchange helps the stakeholders effectively coordinate in preventing hazardous acts and responding to security incidents.
Improve security efficiency
The ISPS requires specific security measures to be carried out at seaports and on ship, including security inspection, risk assessment and emergency response planning. As a result, security risks are detected and prevented promptly and ensure safety for people, goods and marine environment.
Prepare for emergency situations when incidents occur
The ISPS requires seaports, railway stations and shipping lines to arrange appropriate security staff and plan an emergency response plan. As a result, when a security incident occurs, stakeholders can implement quick, appropriate and effective handling measures.
What are the factors that affect ISPS costs?
ISPS surcharges are calculated based on many factors such as:
Volume and size of goods
Bulky, heavy and oversized goods often require higher transportation costs due to compliance with special regulations and conditions.
Type of goods
Types of goods such as high value goods, fragile goods, special packaging and storage often have higher freight charges due to safety and intact during transportation.
Delivery address
Shipping costs may vary depending on the distance and weather conditions of the destination, with difficult destinations that can increase costs.
Storage requirements
Special goods such as biological products, frozen foods, gold and silver, vaccines require special storage and packaging, leading to higher transportation costs.
Pricing policy of the Transport Unit
Each shipping unit has its own price policy, so it is necessary to understand and compare prices between units to choose the best price.
Other factors
The number of containers, shipping time, fuel prices, and service fees at the port also affects the cost of shipping sea.
How to calculate sea freight rates
What is the fee, what role is, who has a fee, ... has been answered. So how to calculate sea freight?
There are two ways to calculate the current sea freight rates are calculated by weight (KGS) and by volume (CBM). The basic principle when calculating sea freight rates is a comparison between volume and weight, then apply the formula to larger price.
* For container rows (FCL), the simple freight rates are calculated by the formula:
Total fee = each container X price number of containers (or the number of bill/shipment).
* With retail container (LCL), do the following calculation:
How to calculate the volume of shipment in CBM unit:
The volume of shipment = (length x width x height) x Quantity (m3)
It is required to compare the volume of the shipment with the weight of the shipment, if:
- 1 ton <3 CBM: Severe goods, calculated according to the price of KGS.
- 1 ton> = 3 CBM: Lightly, calculated by CBM price.
Apply formula calculated by CBM/KGS:
CBM fee = volume of shipment x shipping price 1 CBM.
The fee kgs = (weight (kg) x shipping price of 1 CBM): 1000.
In particular, the shipping price of 1 CBM is prescribed by the service provider.
What is the ISPS and the security of the International Port Security Port Surcharge's ports plays an important role in the import and export of goods, ... has also been shared and answered quickly by Proship Logistics. Businesses wishing to use the domestic and international sea and international sea container transport services or questions about the fees, surcharges, contact 0909 344 247 .
