Title
Clarification of shut-out charges at ports
Law
Ppa Memorandum Circular No. 43-98
Decision Date
Oct 5, 1998
The PPA Memorandum Circular No. 43-98 establishes guidelines for shut-out charges on export and transshipment containers at MICT and South Harbor, detailing the responsibilities of shippers and shipping lines regarding fees incurred due to changes in vessel, destination, or container weight.

Questions (PPA MEMORANDUM CIRCULAR NO. 43-98)

A shut-out container is an export/transshipment container, whether full or empty, that fails to get loaded onto a nominated exporting vessel.

It is an imposition on a shut-out container under the existing tariff applicable at MICT and South Harbor.

When shipper/shipping line requests instructions that result in a change of status, including: (1) change of exporting vessel, (2) change of port of destination, or (3) change in weight as previously declared.

(1) Change of exporting vessel intended to be loaded, (2) Change of port of destination, and (3) Change in weight of the container previously declared.

The shut-out charge shall be for the account of the shipper.

Examples include: changing the loading vessel after receipt of the container at the terminal; changing the port of discharge at the terminal; issuance of hold order by the shipper.

The shut-out charge shall be for the account of the shipping line/agent.

Examples include: vessel is full or lacks port time; vessel breaks down while in port; issuance of hold order by the shipping line/agent.

The shut-out export container shall not be loaded to the nominated vessel without prior payment of the shut-out charge.

It is based on the prevailing PPA-approved cargo handling tariff of MICT and South Harbor.

At MICT and South Harbor.

It shall take effect immediately.

The shipping line/agent, because vessel breakdown while in port is listed as a shipping line/agent’s fault/request/instruction circumstance under the circular.

The shipper, since changing the port discharge at the terminal due to shipper’s instruction/fault makes the charge for the shipper’s account.

Yes. The circular allows imposing a charge equivalent to a shut-out charge when there is a change of exporting vessel intended to be loaded, and it shall be for the account of the shipping line/agent if the change is due to its request/instruction/fault.


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