Port tariff

PORT TARIFFS

INTRODUCTION

●Port Tariff : is the reward / payment payable to the port authority for the rendering of a service. ●Pricing – depends on the forces of supply & demand.●Effected by direct competition between carriers, port authority, commodity & alternative transport (inland & air transport).●Cost of port charges is significant in final market price of goods. ●Mostly, sea transport cost including port expenses is between 8% to 15%.

FACTORS INFLUENCING THE LEVEL OF PORT TARIFFS

1.Competition in its many forms●Location of competing port●Quality and ancillary services●Use of discount rates, usually based in

traffic volume

2.The nature of product●For loose cargo, it will depend on type of

commodity, quantity, overall cubic measurement, value, & period of shipments.

●Dangerous, dirty @ unobvious cargo – higher rate. On negotiation.


3.Trade which cargo originates●Coastal or deep sea.●Deep sea cargo – higher tariff than coastal @ short voyage.●Why? Total sea freight for coastal tend to be lower in volume.

4.Port cost●Cost of value added service provided by port authority, based on direct &

indirect cost plus profit.●Direct : Labor, electricity, fuel, maintenance etc.●Indirect : Depreciation, loan interest, administration etc.●Level of technology


5.Special facilities to handle goods●Wide range of facilities – influence cost and tariffs.●Investment & maintenance cost will be reflected in dues

6.Transport mode●May be using container, Ro-Ro or loose cargo will determine handling

arrangements. ●Development of container has quickened cargo movement.●Results – lower handling cost per ton compared with loose cargo consignment.


7.Exchange rate variations●Exchange rate which are weak can attract traffic against

those which are strong.●Important factor in formulating tariff to remain competitive.

8.Agreement with other port●By countries or group of port.●Pitch tariff at particular level to lessens competition.●Avoid price war, which could result in uneconomic tariff

structure.


9.Statutory controls & subsidies●State-owned port – government control level of charges.●State subsidies to ensure tariff remain competitive.

10.Flag discrimination●Widely practiced worldwide.●National flag operator have favorable tariff than foreign

vessels. ●Also favorable berth access.●To support local business & maintain a national fleet.


11.Marketing●Intense competition – more

promotion of product & service.●Encourage negotiated rates, based

on volume and commitment / loyalty to port.12.Others

●Value of goods.●Ease of handling and storage.●Custom requirements.●Fragility or awkwardly shaped cargo.

TYPES OF PORT TARIFF

Container Services Tariff:■Full Container Load (FCL) Charges■Less Container Load (LCL) Charges■Empty Container (MT) Charges■Transhipment Charges■Storage Charges■Reefer Charges■Removal Charges■Shifting Charges■Over Dimensional Container (OD) Charges■Uncontainerised Cargo Charges■Other Charges (e.g. Garbage, Repair)Conventional Cargo Services Tariff:■Break Bulk Services Tariff■Dry Bulk Services Tariff■Liquid Bulk Services Tariff

TYPES OF PORT TARIFF

Other Terminal Tariff:

■Berthing service■General service: water, power, clerical, internet, etc.■Health service: ambulance, etc.■Security service: fire, security, etc.

Distripark Tariff:

Storage rent, storage charges, etc.

Marine Tariff:

■Navigation■Pilotage, towage, tugboat, pilot boat

SHIP DUES

●Harbor and dock dues. Applied to cover the cost of using berth and service such as lighting the channels, pilotage, conservation & maintenance of berths.

●Also known as Port Dues @ Wharfage.●Charged to ship owners or charterers. Based on either gross or net registered tonnage of vessel.●Also on nature of voyage – foreign going vessels being charged at higher rate than coasters.

SHIP DUES●Specific dues allow the ship to remain for specified period

e.g., 3 days.●Daily charge is raised on expiry of the specified period. ●Ship dues will be charged to:

●Vessel on service calling at a port to discharge/load cargo and/or passengers.

●Ships laid up at berth/quay (daily rate).●Ship calling at port for shelter from a storm.●Vessel calling at port for bunkering, replenishment or

repairs.

SHIP DUES●Discounted rate granted to:

●Liner operators that use port regularly.●Vessels calling only to bunker ●Vessels berthing only to change crews●National flag ship●Ships docking for repairs.

●Free : Vessels which call at the port for emergency purposes, provided no cargo is discharged or loaded, nor is water taken. ●In most major port, pilotage is compulsory. To lead through the seaway access & in the port itself.

SHIP DUES EXAMPLE

GOODS DUES●Dues levied on cargo passing over a berth as import or export merchandise.●Also known as cargo dues, dock rates, wharfage rates or quay rates depending on port.●Goods dues shall apply to all goods discharged or loaded and to any transfer of goods from ship to ship, ship to shore and from shore to ship. ●Paid by importers or exporters to the port authority

GOODS DUES●Charge by some unit of weight, volume or number and nature of goods. (e.g. Dry bulk – RM 0.85 per ton, Cars – RM 45 per cars)●Charges in respect of goods, including container, general cargo, livestock etc., brought into, taken out of or carried through a harbor by a vessel.●But not including charges in respect of work performed, services rendered or facilities provided in respect of goods so brought, taken or carried

TYPES OF GOODS DUE

●Most general cargo (break bulk or liquid bulk) dues are based on tonnage – vary according to commodity.

Grains (Rice, wheat, maize) : RM 5.60 per ton

Chemical : RM 8.50 per ton

●Cargo dues for livestock are assessed on per head basis.

●Road haulage vehicles are calculated on laden or unladen basis – total laden weight of vehicle & per vehicle basis.

●Palletized cargo is charged on a tonnage or per unit basis.

TYPES OF GOODS DUE●Import/Export vehicle (cars, lorries, machinery) – Per vehicle / machinery basis.

TYPES OF GOODS DUE

●Containerized Cargo tariffs is based on container units and commodity (general @ dangerous) in container. ●Full Container Load (FCL) Charges●Less Container Load (LCL) Charges●Empty Container (MT) Charges●Transhipment Charges●Storage Charges●Reefer Charges●Removal Charges●Shifting Charges●Over Dimensional Container (OD) Charge

TYPES OF GOODS DUE

PASSENGER DUES

●Levied by port authority on ship owner or charterer for the passenger, motorist, car or coach passing over the berth.●For the facilities provided – Lounges, refreshment, immigration, baggage facilities etc.●Based on number of passengers / cars / coach.●Charged to the account of ship owner. Will be incorporated in passenger or motorist fare.

GOODS DUES EXEMPTION

●The following goods are exempt from Goods Dues:

●Luggage of travelers●Containers, pallets and other transport

bases used to facilitate transport and not themselves merchant goods●Requisites and victuals acquired for the

ship´s own use except fuel ●Coastal transport of the dock industry

MISCELLANEOUS CHARGES

1. Warehouse or transit shed rental■Cargo in process of transshipment will be

subjected to warehouse rental (daily or weekly basis).

■Tariff on the metreage area occupied or the tonnage of cargo.

■Cargo handling charges to move cargo into or from warehouse would be raised separately, based on tonnage.

■Bonded warehouse – Goods not yet paid custom duty. Charged separately, normally negotiated price.


2. Port equipment hire charge●Wide range of equipment may be hired :

Pallets, fork lift, platform, rope hand truck, conveyer etc.

●Charged on daily hire basis

3. Pilotage and tugboat charges – Based on GRT of ships

4. Cargo palletizing service – Use of mechanical appliances or machinery for palletizing and strapping cargo on pallets

5. Removal of refuse from port authority premises


6. Fire service – Most port have fire fighting vessels. Charged only when used.

7. Police, Security guards service – Charged on per hour basis.

8. Anchorage dues – Charged on ship lying at anchor (lay up berth). Per day and per ton.

9. Fresh water supply

THE END!!!

Port tariff

Education

Transcript of Port tariff