Wharfage
Definition of wharfage
Port authorities charge wharfage fees for the use of facilities when loading, unloading, or transshipping goods.
Wharfage fees apply to any freight passing through the port, regardless of the mode of transportation involved. Typically, these fees are billed to the shipping company, which then passes the cost on to the cargo owner or shipper.
When do I pay wharfage?
Wharfage is paid whenever goods are loaded onto or unloaded from a vessel. It is usually included in the overall terminal handling charges or in the shipping company’s tariffs.
The fee is applied at both the port of origin and the port of destination, but only when the goods are actively handled there. For instance, if a vessel stops at multiple ports but only loads or unloads cargo at specific ones, the wharfage is only charged at those active ports.
Why do I need wharfage?
Wharfage is essential for the continued operation and maintenance of port facilities.
These fees contribute directly to the upkeep of the infrastructure required to handle modern cargo volumes, from berthing ships to managing complex loading and unloading procedures.
Without these fees, ports could struggle to maintain the service levels necessary to facilitate smooth international trade.
How is wharfage calculated?
The calculation of wharfage depends on factors such as the weight, volume, and type of cargo.
Ports often determine the charge based on a unit called the revenue ton, which is calculated either by the metric ton or by cubic meters, depending on which measurement results in a higher fee.
What are the advantages of wharfage fees?
The main advantage of wharfage is its role in ensuring that ports are well-maintained and able to handle large volumes of goods efficiently. It supports global trade by speeding cargo movement, reducing delays, and improving supply chain reliability.
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