ISPS International Ship and Port Facility Security Code

The International Ship and Port Facility Security (ISPS) surcharge is a fee imposed to ensure compliance with the ISPS Code, a crucial international security framework established by the International Maritime Organization (IMO) in response to the heightened threat of terrorism following the September 11, 2001 attacks. This code mandates that both vessels and port facilities implement robust security protocols to safeguard against potential terrorist threats. The ISPS surcharge, therefore, helps cover the expenses associated with enhancing security measures, which include the installation and maintenance of security equipment, personnel training, and ongoing system upgrades to maintain high security standards.

Typically, the ISPS surcharge is levied by shipping companies or port authorities, and it is generally passed on to the cargo owner or the freight forwarder as part of the overall shipping costs. It is applicable across all international shipping routes and is particularly relevant in regions where heightened security risks are identified. The fee structure is usually determined by the shipping line and may vary depending on the port of call, the size of the vessel, and the nature of the cargo being transported.

It is important to distinguish the ISPS surcharge from other security-related charges, such as customs inspection fees or cargo screening charges, which are specific to the cargo and customs requirements of each country. In practice, shippers and freight forwarders should ensure they are fully aware of the ISPS charges applicable to their shipments, as these can vary significantly between ports and shipping lines. Understanding these fees is crucial for accurate budgeting and to avoid unexpected costs during the shipment process.