ISPS
International Ship and Port Facility Security charge · ISPS security charge
Also known as: ISPS charge · ISPS fee · ISPS surcharge · Port security charge
The ISPS charge is a security surcharge that ports and shipping lines collect to cover the cost of the security measures required by the ISPS Code.
In plain words
The International Ship and Port Facility Security (ISPS) Code is a set of IMO rules that has applied to international ships and ports since 2004. Ports must control access, check cargo and people, and keep security plans. These measures cost money.
To cover this cost, terminals or shipping lines add an ISPS charge, usually per container or per bill of lading. It may be charged at the port of loading, at the port of discharge, or both. It is often small, but it is easy to miss if a quote lists only the main freight.
Example from real shipping
An exporter checks an invoice from the shipping line and sees a line called “ISPS”. The quote showed only freight, BAF and THC. The forwarder explains that this is the port security charge and that it will appear on every shipment through that port, so the exporter adds it to future price calculations.
Related terms
- THCTHC is a charge for handling a container at the port terminal, for example lifting it on or off the ship and moving it in the yard.
- BAFBAF is a surcharge on sea freight that covers changes in the price of ship fuel (called bunker).
- Landed costLanded cost is the total cost of getting a product to your door: the price of the goods plus freight, insurance, duties, taxes, and all other fees on the way.
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Request a QuoteThis glossary is general information, not legal or customs advice. Rules, fees, and practice can differ by carrier, port, and country.