Towage Fee

Towage Fee refers to the fee paid to a tugboat company for the use of tugboats to assist a vessel in navigating, turning, braking, or berthing during port calls, canal transits, narrow waterways, or docking/undocking. This fee is common in international shipping and port operations, typically borne by the shipowner or charterer, and may be passed on to the cargo owner under charter party terms (e.g., FIOST, liner terms). Use cases include: vessel entering/leaving port, transiting the Panama/Suez Canal, berthing/unberthing, offshore platform operations, etc. Notes: Towage fees are generally not included in the basic ocean freight and must be listed separately; fees may be calculated based on tug horsepower, time used, or a lump-sum price; port charges vary widely and should be confirmed in advance. Unlike Pilotage, which is the fee for a pilot guiding the vessel, Towage Fee is for the actual assistance of tugboats; compared to port disbursements, towage fee is one specific item within them. Foreign trade practitioners should clarify the responsible party for towage fees in quotations and cost accounting to avoid disputes.