Port tariffs are fees charged by port authorities for services rendered. There are many factors that influence the level of port tariffs, including competition between ports, the type and volume of cargo, trade routes, port costs and facilities, transport methods used, exchange rates, agreements between ports, subsidies and regulations, and marketing. Port tariffs include fees for vessel berthing and cargo handling, storage, equipment usage, security, and more. Tariffs vary based on ship size and type, cargo type and amount, container usage, passenger volume, and other considerations. Exemptions may apply to some goods in transit.

1. PORT TARIFFS

2. 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%.

3. 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.

4. FACTORS INFLUENCING THE
LEVEL OF PORT TARIFFS
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. FACTORS INFLUENCING THE
LEVEL OF PORT TARIFFS
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.

6. 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.

7. 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.
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.

8. 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.

9. 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

10. 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

11. 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.

12. 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.

13. 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.

14. SHIP DUES EXAMPLE

15. 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

16. 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

17. 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.

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

19. 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

20. TYPES OF GOODS DUE

21. TYPES OF GOODS DUE

22. TYPES OF GOODS DUE

23. 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.

24. 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

25. 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.

26. 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

27. 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

28. THE END!!!