International Ship and Port Facility Security (ISPS) Code
On 1 July 2004 new security requirements for cargo ships engaged in international trade and port facilities handling such vessels entered into effect. Internationally these requirements are contained in the International Ship and Port Facility Security (ISPS) Code developed by the International Maritime Organisation (IMO).
In the United States, the requirements are contained in United States Coast Guard regulations promulgated after the United States Congress enacted The Maritime Transportation Security Act of 2002 (MTSA). These documents outline security measures to be taken to deter the unauthorized introduction of dangerous substances and devices, including any device intended to damage or destroy persons, ships, facilities, or ports.
The security measures must be scalable to provide protection at three security levels. The major elements of these requirements are:
Designating facility, ship and company security officers
Conducting ship and facility security assessments
Developing ship and facility security plans
Providing security training commensurate with job function
Instituting access control
Designating restricted areas
Implementing facility/ ship interface
Conducting security monitoring
Concerned parties have expressed interest as to the compliance status of company ships and port facilities of which their cargo moves on and through. As a part of this concern, some are requesting to be advised of and have access to plans, policies, procedures, and compliance documents. These items are of a security sensitive nature and cannot be shared with persons outside of those directly responsible for implementation of protection measures and strategies for company ships and facilities.
All Maersk Line owned and operated vessels are in compliance with the ISPS Code as are all APM Terminals’ operated facilities.
The compliance status of port facilities not operated by APM Terminals can be found on The International Maritime Organisation's website. Port facilities called by our (owned and operated) vessels are in compliance with the ISPS Code. Our (owned and operated) vessels are taking compensatory measures set forth in the ISPS Code should they call at non-compliant port facilities, and we work actively with involved governments in the affected countries to obtain ISPS Code compliance.
The cost of compliance with the International Ship and Port Facility Security (ISPS) Code has resulted in separate ocean carrier and terminal security charges. The ocean carrier cost elements associated with ISPS code compliance include:
Vessel security risk assessment and development of security plans
Vessel certification
Related security implementation, administrative expenses and operational expenses
Accordingly, Maersk Line introduced a "Carrier Security Charge" globally to the amount of USD 6 per container (effective from 2 October 2004). The charge is assessed for account of the cargo. The carrier security charge covers solely Maersk Line's costs in relation to the ISPS charges. The carrier security charge is a Maersk Line charge only and is not charged in addition to any related conference charges introduced.
In addition to the "Carrier Security Surcharge", origin and/or destination "terminal security" charges will be passed on separately as these charges are verified as acceptable and reasonable. Several terminals have introduced their ISPS compliance and related charges to the shipping public as a charge being collected through the shipping lines.
We will continuously audit these ISPS related costs to ensure that the amount is reasonable and that it does not include a profit element to the terminals.
