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.

FACTORS INFLUENCING THE

LEVEL OF PORT TARIFFS
Trade which cargo originates

3.

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.

Port cost

4.

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

FACTORS INFLUENCING THE

LEVEL OF PORT TARIFFS
Special facilities to handle goods

5.

Wide range of facilities influence cost and tariffs.

Investment & maintenance cost will be reflected in dues

Transport mode

6.

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.

FACTORS INFLUENCING THE

LEVEL OF PORT TARIFFS
Exchange rate variations

7.

Exchange rate which are weak can attract

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

Agreement with other port

8.

By countries or group of port.

Pitch tariff at particular level to lessens
competition.
Avoid price war, which could result in
uneconomic tariff structure.

FACTORS INFLUENCING THE

LEVEL OF PORT TARIFFS
Statutory controls & subsidies

9.

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.

FACTORS INFLUENCING THE

LEVEL OF PORT TARIFFS
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
General
Health

service

service: water, power, clerical, internet, etc.

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.
0 Full Container Load (FCL) Charges
0 Less Container Load (LCL) Charges
0 Empty Container (MT) Charges
0 Transhipment Charges
0 Storage Charges
0 Reefer Charges
0 Removal Charges
0 Shifting Charges
0 Over Dimensional Container (OD) Charge

TYPES OF GOODS DUE

Terminal Handling
Charges in
Malaysia and its
Rivals
(Source: Subhan & Gani,
2008)

TYPES OF GOODS DUE

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
ships 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.

MISCELLANEOUS
CHARGES
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

MISCELLANEOUS
CHARGES
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!!!