Date: Wednesday, January 5, 2005

Re:	International Ship and Port Facility Code (ISPS) - Update

Dear NASA Member:

Recent security-related demands have had a cost impact on ocean carriers and terminal facility operators. In the wake of the 9/11 attacks in the United States, many security initiatives have been implemented both in the United States and internationally. The ISPS Code was developed under the Safety of Life At Sea (SOLAS) convention in response to potential threats to ships and port facilities. C-TPAT was developed by U.S. Customs and Border Protection in response to potential threats to the entire supply chain.

Cost elements associated with ocean carrier and port facility compliance include:

• Designation of ship, facility and company security officers
• Vessel and port facility security risk assessments
• Developing ship and facility security plans
• Approval and certification of plans
• Vessel certification
• Implementation of tighter access controls including upgrading infrastructure
• Designation and monitoring of restricted areas
• Employee related security measures
• IT security
• Employee security training
• Related ongoing administrative and operational expenses including additional overtime costs for crew members, especially in ports.

The fee encompasses two components -- a Security Administration Charge and a Terminal Security Charge. It is essential to read the charges as applicable to the loading/receiving port as opposed to country. The combined fees are effective as of October 1, 2004 and have been assessed as follows:

To/from UK Ports	GBP 7.00 per container
To/from North Continent Ports	EUR 14.00 per container
To/from Scandinavia/Baltic Ports	EUR 14.00 per container
To/from Mediterranean Ports	EUR 9.00 per container

In case of LCL shipments, the fee will be rated as follows:

To/from UK Ports	GBR 2.00 per order
To/from North Continent Ports	EUR 3.50 per order
To/from Scandinavia/Baltic Ports	EUR 3.50 per order
To/from Mediterranean Ports	EUR 2.50 per order

Please note that cargo moving in transshipment through more than one of the affected ports will only incur the charge only once. The ISPS fees will be monitored on a quarterly basis, and the above scenario is applicable until at least March 31, 2005.

Best regards,

North American Shippers Association (NASA)
Joan Barrett
NASA Administrator