Clarification of shut-out charges at ports

The circular clarifies the implementing rules on shut-out charges on export/transshipment containers at MICT and South Harbor.
The clarified guidelines apply to the imposition and treatment of shut-out charges under the existing tariff for these ports.
The circular provides operational rules on how shut-out charges attach and who bears the cost depending on the cause.

A shut-out container is an export/transshipment container, whether full or empty, that fails to get loaded onto a nominated exporting vessel.
A shut-out charge is an imposition on a shut-out container under the existing tariff at MICT and South Harbor.
A nominated exporting vessel is the vessel that the container is intended to be loaded onto under the shipping nomination process for export/transshipment.

Shut-out charges apply to an export/transshipment container that fails to get loaded onto the nominated exporting vessel, whether the container is full or empty.
The same charge equivalent to a shut-out charge may be imposed on containers (whether full or empty) when shippers/shipping lines request a change of status under the following instances:
- Change of exporting vessel where the container/s is/are intended to be loaded (3.1).
- Change of port of destination of the container/s (3.2).
- Change in weight of container/s as previously declared (3.3).
The charge equivalence rule applies specifically in situations involving the enumerated changes of status initiated by shippers/shipping lines.

The shut-out charge is charged to the account of the shipper or the shipping line/agent, depending on the cause of the shut-out (Section 4).
The shut-out charge is for the account of the shipper when the shut-out is due to the shipper’s instruction or fault, including instructions such as:
- changing the loading vessel after receipt of the container at the terminal (change of loading vessel),
- changing the port of discharge the container at the terminal (change of port discharge),
- changing the port of discharge and/or issuance of a hold order by the shipper.
The shut-out charge is for the account of the shipping line/agent when the change of status is due to the shipping line/agent’s request or instruction/fault, including instances such as:
- the vessel is full,
- the vessel lacks port time,
- the vessel breaks down while in port,
- issuance of a hold order by the shipping line/agent.

The shut-out export container must not be loaded to the nominated vessel without prior payment of the shut-out charge (Section 5).
The amount of the shut-out charge must be based on the prevailing PPA approved cargo handling tariff of MICT and South Harbor.