The International Ship and Port Facility Security (ISPS) Code was introduced after the 9/11 attacks to strengthen security in maritime transport. It was implemented by the International Maritime Organization (IMO) as an amendment to the Safety of Life at Sea (SOLAS) Convention.
The ISPS Code ensures the security of ships, ports, cargo, and crew as they operate in international waters. It assigns responsibilities to governments, shipping companies, port authorities, and ship personnel to identify security risks and take preventive actions.
Since the ISPS Code is mandatory, companies that manage ships or port terminals apply an extra charge to cover security costs. This surcharge is usually included in the freight quote, meaning the party responsible for paying the freight must also pay the ISPS fee.
ISPS Security Measures
The ISPS Code requires several key security measures, including:
- Monitoring cargo and personnel movements
- Detecting security threats and responding accordingly
- Appointing a security officer on every ship, responsible for handling security tasks based on the threat level
- Defining responsibilities for port officers and ship personnel to deal with security threats globally
- Sharing security-related information with authorities, port operators, and shipowners
- Identifying weaknesses in the maritime industry and finding solutions
ISPS Security Levels
Level 1 – Normal (Standard Security)
The standard level under which ships and ports operate daily. At this stage, routine security measures are in place, including general monitoring of operations, supervision of loading and unloading activities, and continuous surveillance of restricted areas.
Level 2 – Heightened (Increased Security Risk)
It is activated when there is an increased risk of a security incident. During this period, additional security measures are enforced, such as deploying extra personnel to monitor restricted zones, enhancing access control with security devices like metal detectors, and conducting more detailed inspections of cargo and vessels.
Level 3 – Exceptional (Immediate Threat)
This level is implemented when a security threat is inevitable or ongoing. Ship and port operations may be suspended, access is strictly limited to authorized personnel, and security teams work closely with government agencies. Monitoring of movements on the ship and within the port becomes more intensive to prevent any potential incidents.
Who Pays ISPS Charges?
Since the ISPS Code requires extra security personnel, equipment, and planning, shipping companies apply an ISPS surcharge to cover costs. This fee can appear as a Carrier Security Fee (CSF) or Terminal Security Charge (TSC).
The ISPS charge is usually included in the freight quote, meaning the party responsible for paying the freight (shipper or consignee) also covers the ISPS fee.