ISPS (International Ship and Port Facility Security) Charge

The ISPS Charge (International Ship and Port Facility Security Charge) is a fee arising under the International Ship and Port Facility Security Code, designed to cover the costs of security measures for port facilities, ships, and the supply chain, such as security inspections, monitoring, and personnel training. This fee is usually collected by the shipping company or port from the cargo owner (exporter/importer), commonly seen in full container load (FCL) or less than container load (LCL) ocean freight business, listed as a surcharge separate from the freight. Usage scenarios include: ISPS listed separately in the shipping company's quotation when booking, and the fee shown on the bill of lading or expense list. Notes: ISPS fees are not uniform; amounts vary greatly among different ports and shipping companies; they are usually charged per shipment or per container and may be adjusted according to security levels. Unlike Terminal Handling Charge (THC) and Document Fee (DOC), ISPS is specifically for security and must not be confused with THC. Foreign trade practitioners should specify in the contract who bears the ISPS to avoid settlement disputes.