Port Charges and Legal Disputes

Port charges are one of the most common cost items in maritime transport, import, export, and international logistics operations. Throughout the process from a shipment's arrival at to departure from the port, port charges can arise due to numerous services including loading, unloading, handling, terminal services, warehousing, demurrage, security, weighing, inspection, transshipment, container handling, and documentation. Determining which party is responsible for these charges is often at the heart of commercial disputes.

Port charges can create a significant financial burden for companies in foreign trade transactions if they are not foreseen in advance. Especially in import transactions, port charges can rapidly increase due to delays in customs clearance, delays in completing buyer's documents, incomplete seller's paperwork, customs broker's processing delays, and delayed notification by the carrier or freight forwarder. Therefore, the legal nature, basis, calculation method, and responsible party for port charges should be carefully evaluated.

In disputes regarding port charges, the mere existence of an invoice is insufficient. It is necessary to examine which service the charge originated from, the dates it occurred, the tariff applied, whether the contract specifies who is responsible for the charge, and whose fault caused the delay. Otherwise, the importer, exporter, carrier, forwarder, or consignee may face unfair or excessive costs.

What are port charges?

Port charges refer to fees incurred for services provided at a port or terminal. These charges may include services such as loading and unloading cargo from ships, moving containers within the terminal, temporary storage of goods, weighing, inspection, security, handling, documentation, or equipment use.

Port charges are not a single item. They can include various components such as terminal handling charge, warehousing, demurrage, detention, loading and unloading, crane service, weighing, inspection, port security fee, gate exit fee, container unloading, sealing procedures, and documentation costs.

Therefore, when a port fee invoice arrives, the first thing to do is to examine each item on the invoice individually. Which fee relates to which service, for which date range is the fee calculated, is it stated in the contract who is responsible for this expense, and is the fee in accordance with the tariff? A sound legal assessment cannot be made without answering these questions.

Who is responsible for port charges?

Who is responsible for port charges is determined by the contract between the parties, the Incoterms delivery method, the freight contract, the terms of the bill of lading, and the event that gave rise to the charge. Therefore, each specific case must be evaluated separately.

In import procedures, costs at the port of arrival are often borne by the buyer or importer. However, if costs arise due to the seller submitting incomplete documents, the carrier providing incorrect guidance, the forwarder providing late information, or the customs broker making errors, these costs can be recouped from the culpable party.

In export transactions, who is responsible for the charges at the loading port varies depending on the delivery term. For example, in delivery terms such as FOB, CIF, or FCA, the seller and the buyer have different responsibilities regarding port charges. Therefore, it is not accurate to make a general assessment using only the term "port charge.".

Incoterms and Port Charges

Incoterms rules play an important role in determining which party is responsible for port charges. However, Incoterms rules do not resolve every port charge in detail. In particular, separate contractual provisions are needed for charges arising from waiting, storage, demurrage, detention, customs delays, or missing documents.

In FOB delivery, the seller is responsible for loading the goods onto the ship at the port of loading. In CIF delivery, the seller bears the freight and insurance costs; however, the moment of risk transfer is different. In DAP or DDP delivery, the seller may have broader responsibilities up to the destination. These differences directly affect the sharing of port charges.

In international trade contracts, the delivery method must be clearly stated; furthermore, it must be stipulated which party is responsible for port charges, terminal fees, warehousing, demurrage, detention, and customs-related waiting costs. Otherwise, the general provisions of Incoterms may not be sufficient to resolve all cost disputes between the parties.

Terminal Handling Charge and Other Terminal Fees

Terminal handling charge is one of the fees incurred for the handling, movement, and operational processing of containers or cargo at a port terminal. This fee may apply separately to export and import transactions.

Terminal charges may cover services such as unloading, loading, handling within the terminal, stacking, gate handling, weighing, or preparation for inspection of the container. Which party is responsible for paying these charges should be determined according to the carriage contract, freight agreement, and delivery method.

In practice, parties may sometimes assume that certain terminal charges are included in the freight cost. However, the carrier or forwarder may invoice these costs separately. Therefore, freight quotes should clearly state which costs are included and which are excluded.

Storage and Port Waiting Costs

One of the most frequent sources of disputes within port charges is storage fees. Storage fees may arise if goods or containers remain in the port area for longer than a specified free waiting period. These fees can increase rapidly as the waiting time lengthens.

Who is responsible for the storage costs depends on why the goods are being held. If customs procedures could not be completed due to missing documents on the part of the importer, the importer may be held responsible. If the seller submitted incomplete documents, the buyer may claim back the storage fees paid. If the forwarder or customs broker mismanaged the process, their liability may also arise.

When reviewing a storage invoice, the free storage period, waiting dates, applied tariff, and the service to which the charge relates should be checked. Unjustified or excessive storage charges must be challenged in writing within the prescribed time limit.

The Relationship Between Demurrage and Detention and Port Charges

In maritime transport, port charges may include demurrage and detention fees. Demurrage arises when a container exceeds its free time in the port area. Detention is charged if a container is not returned within the specified time after leaving the port.

While these charges may appear to be port fees, they are technically related to the usage time of the container equipment. In contrast, warehousing is a storage fee charged by the terminal or port operator for the goods waiting there.

In an import transaction, multiple items such as storage, demurrage, detention, terminal handling charge, and gate clearance fee may be billed simultaneously. Therefore, it is necessary to separate these expense items. Legal action is possible if there is duplicate charging or incorrect calculation.

Port charges arising from customs procedures

Delays in customs procedures are one of the most common reasons for increased port charges. Goods may be held at the port due to missing documents, incorrect HS codes, valuation issues, origin discrepancies, lack of import permits, product conformity checks, analysis processes, or customs inspections.

Liability for customs-related port charges is determined by the cause of the delay. If the importer failed to submit the necessary documents on time, the cost may be borne by the importer. If the seller sent incorrect documents, the importer can claim compensation from the seller. Liability for damages may also arise if the customs broker or forwarder acted negligently.

In such disputes, customs declarations, customs administration correspondence, bills of lading, invoices, packing lists, certificates of origin, analysis reports, and correspondence between the parties are important.

Port charges due to missing documents

Missing or incorrect documents are a common cause of port charges. Deficiencies in commercial invoices, bills of lading, certificates of origin, packing lists, insurance policies, certificates of conformity, or customs declarations can delay the clearance of goods from the port.

The contract must clearly specify who is responsible for preparing the document. If the seller fails to send the document on time, the buyer may claim the costs incurred at the port from the seller. If the forwarder delivers the document late, they may be held liable to the extent of their fault. If the customs broker fails to notice a clear error in the document, their professional responsibility may be questioned.

When port charges arise due to missing documents, it must be proven with concrete evidence of when the delay began, which document is missing, who is responsible for providing this document, and the amount of the charge.

Objection to Port Fee Invoices

When receiving your port fee invoice, you must carefully examine each item. Check which service was provided, the date range for which the fee was calculated, the applicable tariff, and whether the charge conforms to the contract.

If the invoice is unfair, excessive, duplicate, or unclear, a written objection must be made within the stipulated time. In commercial relations, remaining silent about an invoice may be interpreted adversely in some cases. Therefore, objections to port charge invoices must be justified, documented, and made in a timely manner.

The objection should specifically explain the free period, the reason for the delay, the responsible party, the contract terms, the Incoterms delivery method, container movements, and port records. If necessary, the invoice can be paid under reservation and reimbursement can be sought from the responsible party.

Reimbursement of Port Charges

The party obligated to pay port charges may seek recourse from the party responsible for incurring the charges. For example, an importer may have paid port charges to retrieve the goods. However, if the charges resulted from the seller submitting incomplete documentation, the importer can claim reimbursement from the seller.

Similarly, if a forwarder has paid port charges on behalf of their client, they can pass these costs on to the client. If the cost was incurred due to an error by the customs broker, the injured party can claim compensation from the broker.

The most important aspect of recourse claims is proving that the expense was actually paid and that the delay was due to the fault of the other party. Invoices, payment receipts, correspondence, customs records, and port documents are crucial in this regard.

Port Authority Responsibility

A port or terminal operator may charge fees for the services it provides, but in some cases, it may also be liable for damages. The port operator may be held responsible if goods are damaged or lost within the port area, placed in the wrong container, shipped to the wrong area, or if damage occurs due to a security lapse.

The port operator's responsibility is assessed according to the service contract, port tariffs, general terms and conditions, and the nature of the fault. Camera recordings, terminal transaction records, damage reports, photographs, and expert reports are of great importance in cases of damage occurring within the port area.

It should be remembered that the port operator is not only the party that demands fees, but also has the obligation to handle the goods safely and properly.

The Role of Carrier and Forwarder in Port Costs

The carrier or freight forwarder may pass on port charges to the client. However, this pass-through must be consistent with the contract, the freight quote, and the scope of the business relationship. The forwarder must clearly inform the client which charges are included and which are excluded.

If the forwarder is responsible for tracking clearance times, port procedures, and document flow, they may be liable for port charges arising from negligence in this process. However, if the client has not issued documents, made payment, or received delivery, the forwarder's liability may be considered limited.

From the carrier's perspective, it is important to know which tariff the port charges are based on, whether the customer was informed in a timely manner, and whether the invoice is properly documented.

Excessive and Duplicate Port Charges

Port charges can sometimes reach very high amounts. In such cases, it should be investigated whether the invoice is exorbitant or whether duplicate charges have been applied for the same service. Specifically, items such as storage, demurrage, terminal services, and additional operating fees need to be separated.

In assessing charge exorbitant prices, factors such as tariff, contract terms, market practice, waiting time, the nature of the service, and the reason for the delay are considered. Objections can be raised if the basis for the charge is unclear or if the same service has been billed again under different categories.

Expert examination may be necessary in such disputes. Companies need to examine their port fee invoices not only from an accounting perspective, but also from a legal and logistical standpoint.

Evidence in Port Charge Disputes

The primary evidence in port charge disputes includes: port invoices, fee schedules, bills of lading, freight contracts, booking confirmations, container movement records, port entry and exit records, customs declarations, storage records, delivery documents, email correspondence, notices of default, and payment receipts.

These documents clearly show when the expense was incurred, how long it lasted, which service it relates to, and who is responsible for it. Incomplete documentation may weaken the claim or objection to the expense.

Therefore, all documents related to port procedures in import and export transactions must be kept in an organized manner, and any expenses incurred must be recorded without delay.

How should port charges be regulated in the contract?

The most effective way to mitigate risks related to port charges is to include clear provisions in contracts. Sales contracts, freight contracts, freight forwarder contracts, and logistics service contracts should specify who is responsible for the port charges.

The contract should specify which party is responsible for paying terminal fees, storage, demurrage, detention, loading and unloading, port security fees, inspection, weighing, documentation costs, and other additional charges. Furthermore, the right of recourse should be reserved in case of delays caused by the other party's fault.

These regulations prevent future high-value disputes and clarify the responsibilities of the parties.

Legal Support in Port Charge Disputes

Port charges are a technical issue at the intersection of foreign trade, maritime transport, customs, and logistics law. Therefore, high-amount port charge invoices require legal assessment in terms of warehousing, demurrage, detention, or terminal fees.

The lawyer examines the basis of the invoice, the contract terms, the Incoterms delivery method, the reason for the delay, the grace periods, and the possibilities of recourse. If there is an unjustified cost claim, they will handle the objection process. From the creditor's perspective, they will use enforcement, mediation, or litigation methods to collect the port charges.

For companies operating in foreign trade and logistics, regulating port charges at the contract stage and obtaining prompt legal support in case of disputes is crucial for preventing commercial losses.

Conclusion

Port charges are significant cost items in import, export, and maritime transportation processes. Many different items can fall under port charges, including terminal fees, warehousing, demurrage, detention, loading and unloading, inspection, weighing, documentation, and security costs.

Who is responsible for these costs is determined by the contract terms, Incoterms delivery method, customs procedures, transport documents, free periods, and the cause of the delay. Unfair, excessive, or duplicate port charge invoices must be contested within the prescribed time limit.

To avoid disputes over port charges, foreign trade and logistics contracts must be carefully drafted, cost sharing must be clearly defined, and in case of a dispute, the support of a lawyer experienced in logistics law should be sought.