Asia/Europe carriers to invoice ISPS surcharge
The Far Eastern Freight Conference confirmed Monday it will charge shippers in Europe a security surcharge to recoup costs related to the implementation of the International Ship and Port Facility Security (ISPS) Code by vessel owners and terminals.
The Far Eastern Freight Conference is the first major carrier group to announce such a surcharge. Effective Sept. 15, the surcharge of the conference carriers will be: 5 euros ($6.17) per container in ports of the North Continent of Europe, Scandinavia, the Baltic and the Mediterranean; '1.50 ($2.76) for the ports of Felixstowe, Thamesport, Tilbury and Southampton; and '3.50 ($6.44) for other ports in the United Kingdom.
The add-on carrier surcharge will be in addition to new security charges that will be levied from carriers by terminals and passed on to shippers.
The carriers of the Asia/Europe conference are in individual discussions with certain European terminal operators who have recently announced their intention to start charging an ISPS terminal surcharge. “These discussions by the individual carriers and terminals are currently ongoing to establish the rationale and cost element components of the terminal ISPS surcharges being proposed,” the conference said.
Individual carriers have not yet fully accepted the terminals’ arguments for imposing the proposed ISPS terminal surcharge levels. These terminal surcharges are, in some cases “being forced upon the lines,” the Far Eastern Freight Conference said.
The carrier group cited costs associated with ISPS vessel certification, the administrative costs of processing the charge of the terminal surcharge costs to shippers and consignees, and the cost charged by the terminals for empty and transshipment moves.