ISPS SURCHARGE IS

The ISPS Surcharge, abbreviated as IS, refers to a fee imposed to cover the costs associated with the implementation and maintenance of security measures under the International Ship and Port Facility Security (ISPS) Code. This code was established by the International Maritime Organization (IMO) as a comprehensive framework to enhance the security of ships and port facilities, primarily in response to heightened global security concerns post-9/11.

Shipping lines or port authorities typically levy this surcharge on the cargo owner or shipper, who is responsible for its payment. The charge is applied to ensure that the necessary security protocols—such as access control, surveillance, and emergency preparedness—are effectively implemented at ports and aboard vessels. These measures are crucial to safeguarding against threats such as terrorism, piracy, and smuggling.

The ISPS Surcharge is generally calculated on a per-container basis, though it might vary depending on the shipping line, port, or specific security needs of the region. Unlike other fees that might cover general operational expenses, this surcharge is strictly allocated for security-related enhancements and activities. It is distinct from terminal handling charges or customs duties, which serve different operational purposes.

In practice, it is essential for shippers and freight forwarders to account for this surcharge in their overall logistics planning and budgeting. They should remain informed about any changes in the surcharge rates or security regulations at destination ports, as these can impact the total shipping cost. Additionally, understanding the specific requirements of the ISPS Code in relevant jurisdictions can help in ensuring compliance and avoiding potential delays or penalties.