Sunday, August 18, 2024

Things We Take for Granted: Port Fees

St. Thomas, USVI Cruise Port - Copyright Andy Richards 2012

WHEN WE book a cruise - perhaps especially as newer cruisers, it is usually all about the excitement and adventure of going someplace new. Or, it might be simply about going someplace warm and sunny, especially if you live in an area that experiences cold winters and even snow. Whether you think it is expensive or not, I think most cruisers look at the package price and then consider how things like cabin upgrades, WIFI, food and drink packages, specialty restaurants, maybe a visit to the spa, and onshore excursions affect that cost. At the same time, I am willing to bet that most cruisers do not really think about the incidental, behind-the-scenes costs (which like any "good" business model, are nonetheless, passed on to them). These costs are not a "bad thing." They are part of the business of cruising.

Old San Juan Port - Puerto Rico - Copyright Andy Richards 2011

I AM mainly addressing Port Fees, here. For sure, there are other such costs, like fuel, and fuel taxes and surtaxes; but I think we all intuitively know they are built into the package (if you don't rely on intuition, and are the one in a million who actually reads the fine print in your cruise contract, you will note the provision that allows the line to adjust your cruise price if there is a significant increase in fuel costs - never downward, I suspect). 😏

Cozumel, Mexico Cruise Port - Copyright Andy Richards 2022

WHAT ARE port fees, and what are they comprised of? The primary parts of the port fee are docking charges (consider it something like "rent"), harbor pilot payments, local taxes and surtaxes, baggage handling (where applicable), ship inspection (by Centers for Disease Control - which are unannounced not in every port or stop, and could, therefore end up as a surprise addition to your overall cruise cost) and sometimes tender services. Local law enforcement authorities may also charge a fee for security services where they have a presence in the port.

Galataport Port -Istanbul, Turkey - Copyright Andy Richards 2013

IF WE really think about it, it stands to reason that a port will charge fees. In addition to passing along their costs like taxes, inspection fees, pilot fees, and the like, as we have mentioned, they also have to pay port workers. What we may not always consider is the cost to maintain the port infrastructure. The ocean environment is tough on piers, docks, buoys, and other necessary structures. Different ports have different - sometimes unique - physical requirements. The Liverpool Terminal, which is on the river to and from the Atlantic, for example, has a floating, pontoon dock to accommodate the substantial changes in water level due to tides.

Prince's Wharf Cruise Terminal - Liverpool, England - Copyright Andy Richards 2023
EACH PORT will have its own fees, based on things like the local labor market and taxes, and the charges they assess for the other services noted above. Those fees can vary greatly. Cruisenation.com notes:

". . . port charges and taxes tend (my emphasis) to be around 10-20% of the base cruise fare. But that isn’t always the case. In fact, you might find that your port charges and taxes total almost half of the base cruise fare!"

HOW ARE port fees determined? Again, this varies from port to port, but there is generally commonality in how they are calculated. There are a number of factors involved, usually including ship size (length, gross tonnage and passenger capacity), the number of passengers aboard. Per passenger fees are theoretically designed to cover their use of the local infrastructure while on shore. Docking charges ("rent"?) are based on the size and tonnage of the ship. The components of the docking charges include the "space" the ship will take up and for how long, and the current labor rates for shore workers (like line handlers, etc.). It might be a reasonable assumption that as the ship capacity gets larger, some of these costs are spread between more passengers, which should lower the fees. But since the physically larger ships incur higher fees, that generally doesn't occur. Cruisenation.com notes that the CDC inspection, if it occurs, incurs charges of between $17,00 - $25,000 per instance! Even the Harbor Pilot costs are determined by the physical qualities of the ship, including length and width, tonnage, and draft.

Cruise Port - Warnemunde, Germany - Copyright Andy Richards 2023

WHEN YOU are booking a cruise, it will be useful to look at how the port fees - which most certainly are being passed on to you - are presented by the cruise line. Do they include it as part of the base fee (the vast majority of cruise lines do not). Either way, these charges are generally subject to change if port fees and fuel costs substantially change). Or do they give you their "price" up front and then add on these charges to the originally advertised and/or quoted price. If they do, they should be making this abundantly clear in their sales material. I am led to believe by some of what I read online, that sometimes they "bury" these additional charges in the fine print. I am not sure the latter practice is being as "transparent" as they might, but knowing this will help you determine your true cost and budget for the cruise. In most cases, if you are getting a quote, or if you are booking, you will certainly see it when your "final" price comes in higher (sometimes substantially) from the original advertised price of the cruise. Also, it should be reasonably obvious that cruises with fewer ports will incur less port fees.

Refueling Operations - Celebrity Reflection - Copyright Andy Richards 2015


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