Port Charges and Local Fees in PNG: What Importers Pay on Arrival
Destination charges are where most surprises on PNG shipments come from. Here’s what each charge is for, who levies it, who usually pays it, and how to avoid the ones that build up over time.
In this guide
- Destination charges come from several parties: the terminal, PNG Ports, the shipping line, Customs, biosecurity and your broker.
- PNG Ports’ regulated charges are capped by maximum tariffs set by the Independent Consumer and Competition Commission.
- Storage, demurrage and detention grow every day cargo or containers are held past the free period.
- Ask for an itemised estimate of destination charges before you ship.
Who charges what
| Charge | Typically levied by | What it covers |
|---|---|---|
| Terminal handling | Container terminal operator | Lifting the container off the ship and handling it in the terminal |
| Wharfage and port charges | PNG Ports Corporation | Use of port infrastructure, based on cargo or containers |
| Delivery order and documentation | Shipping line or its agent | Releasing the cargo to the consignee and processing paperwork |
| Freight station charges (LCL) | Container freight station | Unpacking shared containers and handling LCL cargo |
| Customs entry and brokerage | PNG Customs and your broker | Lodging and processing the import entry |
| Biosecurity fees | Biosecurity authority | Inspections, treatments and permits |
| Cartage | Transport operator | Delivery from the port to your premises or site |
Regulated port charges
PNG Ports Corporation’s regulated services are subject to maximum tariffs set by the Independent Consumer and Competition Commission (ICCC), published in the National Gazette. PNG Ports may charge less than the maximum, but not more.
Charges can also differ between ports. Past tariff schedules, for example, included yard maintenance and casual labour pool surcharges specific to Port Moresby. Ask your forwarder for the charges that apply at your port of discharge.
Charges that grow over time
- Storage: charged by the terminal or port once cargo stays beyond the free storage period.
- Demurrage: charged by the shipping line when a full container stays in the port beyond its free time.
- Detention: charged by the shipping line when a container is kept outside the port, for example on an inland delivery, beyond its free time.
These charges are where small delays become expensive. In PNG, where containers often travel long distances inland, detention deserves particular attention.
Paying charges and avoiding release delays
Most destination charges must be paid before the cargo is released. The shipping line won’t issue a delivery order until its charges are settled, and the terminal won’t release the container until its own charges and any holds are cleared. Charges are generally invoiced in kina, and some parties expect payment in advance.
Agree with your forwarder or broker who will pay each charge, and have funds ready before the vessel arrives. Waiting for an invoice to be approved while storage is running is a common and avoidable cost.
Who pays destination charges?
It depends on your Incoterm and the shipping contract. Under terms such as FOB and CIF, most destination charges fall to the buyer, even though the seller pays the main freight under CIF. Under DAP, the seller pays to deliver to the named place, but import clearance, duties and GST remain with the buyer. Under DDP, the seller pays almost everything, which is rarely practical for PNG imports.
Misunderstandings about who pays destination charges are a common source of disputes. Spell it out in the sales contract and the freight quote.
Go deeper
Getting a reliable estimate
- Ask for an itemised list of destination charges, showing which are fixed and which are estimates.
- Check whether charges are quoted per container, per revenue tonne or per shipment.
- Confirm free time for storage, demurrage and detention.
- Ask how charges are invoiced, in what currency, and when they must be paid.
- Add customs brokerage, duties, GST, biosecurity fees and delivery to reach the full landed cost.
Frequently asked questions
What are terminal handling charges?
Charges for lifting containers off the ship and handling them within the terminal. In PNG, the importer usually pays the destination terminal handling charges.
What is the difference between demurrage and detention?
Demurrage applies when a full container stays in the port beyond its free time. Detention applies when a container is kept outside the port, such as during an inland delivery, beyond its free time.
Are PNG port charges regulated?
PNG Ports Corporation’s regulated services are subject to maximum tariffs set by the Independent Consumer and Competition Commission.
Do LCL shipments pay different charges?
Yes. LCL cargo usually pays freight station charges for unpacking and handling, charged per revenue tonne or per shipment.
More on shipping modes, transit times and costs
Sources
Philip Thomas
Philip is the lead author and editor at Phantom8. He writes practical guides to shipping freight into Papua New Guinea, with a focus on choosing the right port, clearing customs and planning the inland leg.
General information only. This guide is general in nature and isn’t legal, customs or logistics advice for your specific shipment. Port operations, road conditions, schedules and charges change, so confirm the details with your freight forwarder, transport operator or the relevant authority before you ship.