ISPS Code and Fees in Ocean Shipping
Quick overview
ISPS stands for the International Ship and Port Facility Security Code. It establishes security requirements for relevant ships and port facilities in international maritime transport. An ISPS fee or port security charge on a freight quote is a commercial charge associated with security services or costs. The Code itself does not set one universal amount that every shipper pays.
What does the ISPS Code cover?
The ISPS Code forms part of the maritime security regime under SOLAS Chapter XI-2. Its measures address how relevant ships, shipping companies and port facilities assess security risks, prepare security plans and respond to different security levels. Part A contains mandatory requirements; Part B provides guidance. The International Maritime Organization’s ISPS overview explains the framework.
As a shipper, you are more likely to encounter ISPS as a charge description than as a document you must prepare. Do not confuse it with cargo insurance, customs clearance, a terminal handling charge or a fee for a shipping container seal.
Why is there an ISPS or security fee on my quote?
Carriers and service providers may recover security-related costs through a separately named charge or include them within another quoted amount. A carrier may use terms such as ISPS, port security service, security fee or a carrier-specific charge code. Those labels should prompt a check of the actual tariff description; they do not prove that every similarly named line covers identical services. Carrier charge descriptions show that security items can be associated with the export or import side of a shipment.
| Quote detail | What to check |
|---|---|
| Charge name | What service does this particular line cover? Ask for the carrier or provider’s charge description if the abbreviation is unclear. |
| Location | Does it apply at the origin port, destination port or another point in the route? |
| Charging basis | Is it quoted per container, per shipment, per bill of lading or on another basis? |
| Inclusion | Is the amount already included in the ocean rate or another local charge? |
| Payment and validity | Who is billed, in what currency, and which quote or tariff validity applies? |
There is no reliable flat ISPS price to add to every shipment. The applicable amount and billing method depend on the quoted service, route and provider. A change in a security charge should be checked against the terms and validity of the actual quote.
Example: reading an ISPS line item
Hypothetical example, not an iContainers rate: a quote for one container lists “Origin port security: $35 per container.” Ask whether that $35 is already part of the origin charges, whether a separate destination security item applies, and which party will be billed. Do not add $35 a second time when comparing the quote total.
For the full relationship between base freight, origin and destination charges, and other surcharges, use How to Calculate Ocean Freight Charges. To compare offers with the same service scope, use How to Compare Freight Quotes.
What should you do before booking?
- Identify the origin and destination ports and the services you want quoted. The Port of Los Angeles guide is an example of a port page for route planning; its existence does not establish a particular security fee for your shipment.
- Request an itemized ocean quote and check the security line against other local charges.
- Confirm the payer, charging basis, currency, inclusions and quote validity.
- If two quotes use different security labels, ask what each label includes before comparing totals.
You can begin with the ocean freight calculator and review the actual charge breakdown for your route and shipment.
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