What Are Port Dues And How Are They Regulated?

Port dues are fees or charges imposed on vessels and cargo for the use of port facilities and services. These fees contribute to the maintenance and development of port infrastructure, ensure safe and efficient handling of ships and goods, and support port authority operations. Port dues vary by port, vessel size, type of cargo, and services utilized, and are essential components of maritime commerce costs.

Types of Port Dues

Berth Hire Charges

Fees for occupying a berth or quay during loading or unloading.

Pilotage Fees

Charges for the services of a harbor pilot who guides vessels safely into or out of the port.

Towage Fees

Costs for tugboat assistance during maneuvering within port limits.

Wharfage and Cargo Handling Charges

Fees related to loading, unloading, and storage of cargo at the port.

Port Facility Charges

General charges for use of port infrastructure such as docks, terminals, and storage yards.

Harbor Dues

Fees levied on vessels for navigating through or using harbor waters.

Regulation of Port Dues

Port Authorities and Statutory Bodies

Port dues are regulated by port authorities or corporations established under national or state laws. In India, for example, major ports are governed by the Major Port Trusts Act, 1963, which empowers port trusts to fix and collect dues.

Tariff Fixation

Port dues and tariffs are generally fixed based on vessel size (gross tonnage or registered tonnage), cargo type, duration of stay, and service costs. They must be reasonable, transparent, and published for public knowledge.

Approval and Oversight

Regulatory bodies such as port tariff authorities or maritime boards often review and approve the schedules of dues to prevent unfair charges and ensure competitive port services.

International Guidelines

The International Maritime Organization (IMO) and bodies like the International Association of Ports and Harbors (IAPH) provide best practices and standards to harmonize port dues globally.

Legal Framework

• In India, major ports operate under the Major Port Trusts Act, 1963, which mandates the regulation of port charges.
• Minor and private ports are regulated by state maritime boards or other specific statutes.
• Contracts and shipping agreements may also define responsibilities related to port dues.
• Disputes over port dues can be adjudicated by port authorities or maritime tribunals.

Example

A container ship arrives at Mumbai Port for unloading:

• The port authority charges berth hire fees calculated based on the ship’s gross tonnage and duration at berth.
• The ship uses harbor pilot services, for which pilotage fees are applied.
• Tugboats assist the vessel’s maneuvering, adding towage fees.
• Charges for cargo handling and storage are also billed separately.
• All fees are listed transparently on the port’s published tariff schedule and collected by the port trust.