1 October 2004

FIATA clashes with carriers on ISPS surcharges

The following article is extracted from the 30 September 2004 edition of “American Shipper”.

The International Federation of Freight Forwarders Associations (FIATA) has urged its members to refuse to pay surcharges levied on shippers and forwarders by ocean carriers to cover the costs of the International Ship and Port Facility Security (ISPS) code….

FIATA accepts that ISPS measures are necessary to enhance ship and port security and that corresponding investments have been made. The forwarders' federation said, "everybody must contribute to security," citing shipping lines, terminal operators, governments, port authorities and cargo interests.

"ISPS and related costs are, however, a matter of and between terminal operators and shipping lines, and not of port users, freight forwarders and cargo interests, and cannot be levied by an additional surcharge," FIATA added. It believes these costs are part of the operational costs of terminal operators and shipping lines.

Ohl [FIATA Deputy Director] said forwarders within FIATA have already rejected ISPS surcharges invoiced by carriers. "But shipping lines have refused to release the bills of lading," he told American Shipper.

He added that, contrary to bunker and currency costs of carriers, ISPS costs are constant, not temporary. FIATA noted that when a freight forwarder obtains an ISO certificate, the forwarder does not ask for a surcharge from its customers.