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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
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.
FACTORS INFLUENCING THE LEVEL OF PORT
TARIFFS
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.
FACTORS INFLUENCING THE LEVEL OF PORT
TARIFFS
9. Statutory controls & subsidies
State-owned port – government control level of
charges.
State subsidies to ensure tariff remain competitive.