Ocean Freight Surcharges

ISPS Surcharge (ISPS Security Charge)

ISPS (ISPS Security Charge): Port security compliance charge. When it applies, typical range, and who pays under common Incoterms.

Code: ISPS
Name: ISPS Security Charge
Typical range: $5-$25 per TEU
Routes: All ocean routes through ISPS-compliant ports

ISPS (International Ship and Port Facility Security) Charge is a fee that covers the cost of security measures implemented under the International Ship and Port Facility Security Code. This IMO regulation, enacted after 9/11, establishes security requirements for ships, ports, and government agencies.

ISPS requirements include: • Security assessments and plans for ports • Security personnel and training • Access control and identification systems • Surveillance and monitoring equipment • Cargo screening procedures • Security drills and exercises

The ISPS fee is typically: • Charged per container or per bill of lading • Applied at both origin and destination ports • Collected by terminals or carriers • Sometimes included in THC

Ships must carry an International Ship Security Certificate (ISSC), and ports must have approved Port Facility Security Plans. Non-compliant ships can be denied port entry.

The charge compensates port facilities for ongoing security compliance costs and is a permanent part of shipping costs since ISPS implementation in 2004.

When ISPS applies

Applied at ISPS-compliant ports worldwide (most commercial ports).

Who pays ISPS under common Incoterms

FOB: buyer
CIF: buyer
EXW: buyer
DAP: seller

How to minimize ISPS

ISPS is mandatory - no avoidance possible
Verify if included in THC to avoid double-charging
Budget as standard shipping cost

Frequently asked questions

What is the ISPS surcharge?

ISPS stands for ISPS Security Charge. Port security compliance charge.

When does ISPS apply?

Applied at ISPS-compliant ports worldwide (most commercial ports).

How much is ISPS?

The typical range is $5-$25 per TEU. Confirm the current amount with your carrier or forwarder.