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Destinat.Terminal-Intl Ship&Po IPS

Abbreviation
IPS
Short code for this term
Category
Fees & Surcharges
Ocean freight fee type
Index
I
Alphabetical index letter

Definition

The Destination Terminal - International Ship & Port Security (IPS) fee is a crucial charge in the logistics and shipping industry, aimed at enhancing the security measures at the destination port. This fee is primarily collected by the port authorities or terminal operators to cover the costs associated with implementing and maintaining security protocols as mandated by the International Ship and Port Facility Security (ISPS) Code. The ISPS Code, established by the International Maritime Organization (IMO), is a comprehensive set of measures designed to enhance the security of ships and port facilities, particularly in response to potential threats of terrorism and other illicit activities.

Typically, the IPS fee is charged to the consignee or their designated freight forwarder, who is responsible for settling this cost as part of the overall shipping expenses. The fee ensures that the destination port can effectively manage security screenings, access controls, surveillance systems, and other protective measures. It is generally calculated based on the volume or weight of the cargo, although specific rates and structures may vary depending on the port's regulations and the nature of the cargo being handled.

In terms of its distinction from other fees, the IPS fee is specifically focused on security-related costs at the destination port, whereas other charges, such as terminal handling charges, cover general operations and handling services. Stakeholders in the logistics chain should be vigilant in reviewing their shipping documents to ensure that the IPS fee is accurately invoiced and that no additional or duplicate security charges are imposed. Proper documentation and understanding of this fee can prevent delays and ensure compliance with international security standards, ultimately facilitating a smoother cargo clearance process at the destination.

Summary

Destination Terminal - International Ship & Port Security fee at the destination port.