Paying port dues is an essential part of the shipping process, and these charges are unavoidable. But there are ways you can reduce your overall shipping costs. Read this blog to find out how you can save money and maximize your profits.
Port dues refer to the fees or charges imposed on ships or vessels for using a port’s facilities and services. These charges are typically levied by port authorities to cover the costs associated with maintaining and operating port infrastructure.
Port dues may vary based on the size of the vessel, the type of cargo being transported, the duration of the stay in the port, and the services utilized. For example, a smaller vessel that docks overnight would have a much lower charge than a larger vessel that docks during the day.
It’s important to note that port dues are just one component of the overall costs incurred by shipping companies and are separate from other charges such as cargo dues and tonnage dues. Let’s take a look at how these three charges differ from each other.
Port authorities utilize revenue from port dues to cover the costs associated with maintaining, operating, and improving port infrastructure and services.
The specific allocation of funds can vary, but generally, the revenue generated from port dues is used for the following purposes:
-Infrastructure maintenance: Port authorities allocate funds to maintain and repair the physical infrastructure of the port, including berths, quays, navigational channels, and cargo-handling facilities. Regular maintenance is essential to ensure the safety and efficiency of port operations.
-Environmental protection: Ports may allocate funds for environmental initiatives, including pollution control, waste management, and other measures to create sustainable ports.
-Technology and automation: Port authorities may invest in technology and automation to enhance the efficiency of cargo handling, vessel operations, and overall port management.
-Expansion and development: Port authorities also use funds to invest in the expansion and development of port facilities to accommodate growing maritime traffic and enhance the overall capacity of the port.
Let’s look at some other charges that port authorities levy to maintain their infrastructure.
Here is a small list of port charges that are common in shipping.
Terminal handling charge: The Terminal Handling Charge (THC) is a fee collected by terminal operators for various services related to containers. These services include loading, unloading, storage, movement, and maintenance at terminals, container freight stations, or even wharves
Port storage charges: Port storage charges are paid for the space occupied by the container within the terminal grounds, warehouse, or container yard. This storage period starts as soon as your containers enter the storage facility and ends when they’re taken out of the territory.
Depot handling charges: Container depot charges in shipping are associated with the storage, maintenance, and handling of shipping containers at container depots.
