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!!!