A significant error in port charge estimation has resulted in a US$140,000 loss for a South American grain shipment, highlighting the importance of accuracy in maritime logistics. The financial shortfall, caused by outdated cost data, was fully covered by the International Transport Intermediaries Club (ITIC).
According to a news release, the incident began when a pool manager, responsible for organising a ship to transport grain from a South American port, relied on a Final Disbursement Account (FDA) from a previous, smaller vessel to estimate port fees. The outdated estimate pegged the costs at US$80,000, which was incorporated into freight calculations and shared with the pool owner.
However, the ship assigned for the current voyage was 40,000 metric tonnes larger than the previous one, moving it into a higher pricing category according to terminal rules. Compounding the issue, the vessel’s deeper draught required the use of a second pilot. These factors pushed the actual port charges to US$220,000—US$140,000 more than anticipated.
The discrepancy left the pool owner facing a significant financial gap, as the additional expenses were not factored into the freight.
An investigation by ITIC revealed that the pool manager had failed to update the port cost estimates to reflect the specific characteristics and requirements of the larger vessel. Recognising the oversight, ITIC accepted responsibility and compensated the pool owner for the unexpected costs in full.
Mark Brattman, of ITIC, commented on the incident, stating: “This incident serves as a stark reminder of the critical importance of precise cost estimation and diligent planning in maritime logistics. The substantial shortfall due to inaccurate port charge estimates underscores the risks involved and the necessity of aligning cost calculations with ship specifications to avoid unforeseen financial impacts.”
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