Cargo dues, tonnage dues, and port dues are all types of fees charged to ships for the use of ports. Shippers pay cargo dues for the cargo transported on a ship, and ship owners pay tonnage dues based on size or weight. Port dues are paid for the use of port facilities, and the amount of fees varies from port to port.
What are the differences between these fees?
When they are paid
The shipper pays cargo dues before the cargo is transported. The shipowner pays tonnage dues and port dues after the ship has arrived at the port. It involves a calculation of the ship’s tonnage and cargo weight.
The basis for calculation
Cargo dues are based on the weight or size of the cargo. Similarly, tonnage dues are based on the size or weight of the ship. Port dues are based on the use of port facilities.
Who sets the rates?
Each port authority sets the rates for cargo, tonnage, and port dues, and the rates may vary from port to port.
What do they cover?
Cargo dues cover the costs of transporting the cargo. Tonnage dues fund the costs of using the port facilities, and port dues pay various costs, such as harbormaster fees, pilotage fees, and mooring fees.
How they are collected?
The shipper typically pays cargo dues to the shipping company, paying the port authority. The shipowner usually pays tonnage dues and port dues to the port authority.
Exemptions
There may be exemptions from cargo dues, tonnage dues, port dues or international sea freight rates from Australia for certain types of ships or cargo. For example, ships engaged in international trade may be exempt from cargo dues. Simultaneously, a less than container load (LCL) is often exempt from port dues.
Waivers
It is possible to get a waiver from paying cargo, tonnage, or port dues. For example, a ship may obtain a release for carrying humanitarian aid or if they are visiting a port for the first time.
Penalties
There are penalties for not paying cargo dues, tonnage, or port dues. The penalties vary from port to port, and they may include a fine, detention of the ship, or arresting the ship’s master.
What are these fees used for?
To finance port development
One of the primary uses of cargo dues, tonnage dues, and port dues is to finance the development of port facilities. It includes the construction of new docks, the deepening of channels, and new warehouses.
To finance port operations
Another use of these fees is to finance the daily operations of the port. It includes the costs of hiring harbor masters, pilots, and other staff, and it also covers the costs of maintaining the port facilities.
To finance environmental protection
Some of the revenue from these fees is used to finance environmental protection measures, including cleaning up oil spills or waste disposal.
To finance security
Some of the revenue from cargo, tonnage and port dues are used to finance security measures, including the costs of hiring security personnel and upgrading security systems.
To finance other costs
The revenue from these fees is also used to finance other costs, such as promoting exports and providing information services.
How do shippers and shipowners benefit from these fees?
Shippers
- Shippers can be confident that they will be charged a uniform rate for cargo transportation regardless of the port. It ensures that there is fair competition between ports.
- They can be sure that the fee will cover all the costs of transporting their cargo, including the cost of labor, transport, and insurance.
- They can get a waiver from paying cargo dues if they are carrying humanitarian aid or if their ship is visiting a port for the first time.
Shipowners
- They can be confident that they will be charged a uniform rate for using port facilities regardless of the port. It ensures that there is fair competition between ports.
- Shipowners can ensure that the fee will cover all the port facilities costs, including the cost of labor, transport, and insurance.
- They can get a waiver from paying tonnage dues or port dues if their ship is carrying humanitarian aid or if their ship is visiting a port for the first time.
It is really important for you to know about different aspects of cargo dues, tonnage dues, and port dues.
