What is ISPS?
ISPS (International Ship and Port Facility Security Code) is an essential security measure put in place as a result of the 9/11 terrorist attacks. The code was implemented by the International Maritime Convention (IMO) as an amendment to the Safety of Life at Sea convention.
The main purpose of ISPS is to regulate and control the security and safety of the crew, ships, ports, and cargo as they travel through international waters. It accomplishes this by assigning levels of responsibility to governments, shipping companies, shipping personnel, and port operators to detect security threats and enact preventative measures as a result.
ISPS is a mandatory requirement for ships and ports. Therefore companies that operate ships or terminals charge customers an additional surcharge to cover the cost ISPS implementation. The party responsible for paying for the freight is also responsible for these surcharges. Typically, those charges are a part of the freight quote.
What measures does ISPS require?
- The activity of cargo and personnel be monitored.
- Detection of any and all security threats.
- That there be a security authority on every ship, with a multitude of duties depending on the security level.
- Established roles and responsibilities for port state officers and onboard officers to handle maritime security threats internationally.
- Established roles and responsibilities for contracting government agencies, local administrations, and shipping and port representatives.
- Collection of international data concerning security threats and develop solutions to each of these problems.
- All security-related data shared with the general public, the international port, and ship owners.
- Assessment of the flaws in the industry and necessary solutions for each issue.
What are the levels of security within the ISPS code?
The ISPS code consists of three security levels, and they are:
Security Level One (Normal): The standard level of security that ships and port facilities operate under. At this level, there are minimum protective measures that need to be maintained.
Level One Guidelines:
- Ship and port operations are carried out in a general/normal manner.
- Ship and port operations and security are carried out according to their facility security plan.
- Ship and port authority equally divide and supervise the loading and unloading process.
- Port authority keeps the “No Access” areas under surveillance at all times.
Security Level Two (Heightened): Applied whenever there’s a higher risk of a security incident during transport. At this time, additional security measures are implemented and maintained for a given period of time. Security experts on the ship and port facility will indicate how long heightened security measures need to be in place.
Level Two Guidelines:
- All routine and cargo operations are carried out with increased security measures in ships and ports.
- Ship and port authorities increase “Lookouts” in no access zones and waterside areas.
- Access control is enforced with the use of escorts aboard and the implementation of security cameras and metal detectors.
- Ship and port authorities prepare full or partial search operations of the ship.
Security Level Three (Exceptional): Incidents are almost unmissable so case-specific security measures will be put into place. The security experts on the ship and port will work closely with government agencies and follow specific protocols to avoid any issues.
Level Three Guidelines:
- Ship and port operations often stop and frequent security rounds and duties will be carried out by both parties.
- The treat of the incident or its target may not be possible to identify right away.
- There is limited access to a single, controlled access point.
- Access is only granted to those who are authorized personnel or responders of a security incident.
- During this time, there can be a suspension of embarkation or disembarkation, as well as suspension of cargo operations.
- Port authority keeps the “No Access” areas under surveillance at all times and monitors the movement of people on the ship.
What is an ISPS charge? Who is responsible to pay for it?
The ISPS code is a mandatory implementation to ensure the safety of all concerned parties and goods. This results in monetary expenses for the employment of trained personnel. In turn, this requires a lot of manpower, equipment, and planning to ensure that the ISPS code is correctly implemented.
To make sure of this, companies charge an ISPS surcharge on ocean shipments. A customer may get surcharged in the form of Carrier Security Fee (CSF) and/or Terminal Security Charge (TSC).
Typically, the ISPS charges are a part of the freight quote and are required to be paid along with the freight. This means that whoever pays for the freight (the shipper or the consignee) will also have to pay the ISPS surcharge.
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What Are ISPS Charges? (Definition of ISPS)
Everything you need to know about the International Ship and Port Facility Security Code (ISPS Code).
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What is ISPS, and what does ISPS stand for in shipping? Whether you are an existing importer, exporter, trader, or a novice in the shipping and trading business, you need to know the answers to this before you enter into the business.
Unknown, unforeseen, and unbudgeted shipping and freight costs could mean the end game for your business, so they need to be controlled and monitored closely.
If you have been checking your freight quotes or gone into the anatomy of a freight invoice, you would have noticed a charge called ISPS Charge or ISPS Surcharge or simply ISPS. The ISPS abbreviation stands for International Ship and Port Security, should not be considered just another acronym in the world of shipping otherwise filled with acronyms.
So what does isps mean in shipping terms?
This is an essential item with a deeper meaning than some freight-related charges.
What Is T he International Ship and Port Facility Security Code ( ISPS ) ?
If you ask yourself the meaning of ISPS, then nicely, ted, after the 9/11 attacks. The IMO (International Maritime Organization) realized that what happened in the air could also occur on the sea or via the sea. Thus, the IMO decided to develop, recommend, and implement security measures applicable to ships and port facilities worldwide.
These measures are termed the International Ship and Port Facility Security Code (ISPS). They are implemented through the International Convention for the Safety of Life at Sea (SOLAS), 1974 chapter XI-2, to enhance maritime security.
Purpose of ISPS Code
The primary objective of the ISPS Code is to provide a standardized, consistent global framework across the maritime world. This will enable the countries that have subscribed to the code to evaluate, detect and assess the security risks to the ships calling at their ports and take appropriate measures to determine the security levels they must follow and the related security/preventive measures to be taken.
- to institute respective roles and responsibilities of all parties (governments and government agencies subscribed to the code, port administration, and the shipping and port agencies) concerned, at a global and domestic level, to ensuring maritime security
- to exchange/share relevant security-related information
- to assure shipowners that adequate and proportionate maritime security measures are in place for their ships
In terms of the ISPS code, shipping lines, ports, and terminals are required to place appropriate security officers/personnel onboard each vessel, in each port facility, and each shipping company to prepare and put into effect the security plans that will be implemented.
Security levels of ISPS code
The ISPS Code consists of two parts & three levels of security.
The parts of the ISP’s code are:
- Part A – These are mandatory provisions that talk about the employment of security officers in the shipping companies, their ships, and port facilities that they call.
- This also covers various security matters that need to be considered in preparing security plans for the ships and port facilities.
The local port authority implements the security levels under consultation with the government authorities. The security level adopted by the port facility must be coordinated with the ship for synergy.
The three levels of ISPS security are:
- ISPS Security Level 1 – average – the level at which the ships and port facilities operate under normal conditions. Minimum protective measures will be maintained at all times.
- Security Level 2 – heightened – this level will apply whenever there is a heightened risk of a security incident. The security experts will determine this time frame on the ship or at the port facility. At this level, additional security measures will have to be implemented and maintained for that period.
- Security Level 3 – exceptional – at this level, it is considered that a security incident is imminent, and SPECIFIC security measures will have to be implemented and maintained for that time. At this level, the security experts will work in close conjunction with Government agencies and possibly follow specific protocols and instructions.
Why is ISPS charged, who charges it, and who pays for it?
The ISPS code must be implemented in its fullest form to ensure the safety and protection of all concerned. For a shipping line and port, it means additional expenses for the employment of qualified and trained personnel capable of implementing the security measures required by the code.
Many workforces, planning, and equipment go into implementing the ISPS code and ensuring the safety and security of the ship’s crew and the staff in the port.
To cover these costs, the shipping lines charge the ISPS surcharge.
A customer might get charged ISPS surcharge in Carrier Security Fee and/or Terminal Security Charge.
As the name implies, the carrier charges Carrier Security Fee to cover the cost incurred in implementing the ISPS code.
As the name implies, Terminal Security Charge is charged by the port to the carrier to cover the cost incurred in implementing the ISPS code at the relevant port/terminal.
Typically the ISPS charges form part of the freight quote and are required to be paid along with the freight; therefore, whoever pays the freight (shipper or consignee) will also pay the ISPS surcharge.
The quantum of the ISPS charges is set by the line depending on the port of call as some of these costs are variable.
Bearing in mind the constant threat of maritime piracy hanging over our heads, initiatives like ISPS provide us with much-needed comfort in protecting the cargo, crew, and ships. Although this may come at a cost currently, such initiatives have been designed to protect and benefit us in the long term.
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