In order to meet the costs incurred to comply with the requirements of the International Ship and Port Facility Security (ISPS) code, P&O Nedlloyd has announced the introduction of a global "carrier security charge" of $6 per container with effect from 1 January 2005.

In addition, Origin and Destination Terminal Security Charges will be passed on separately as, and when, they are applied to P&O Nedlloyd by terminal operators / port authorities.

Until recently, P&O Nedlloyd has resisted the additional costs from terminals, but, like all other lines, P&O Nedlloyd faces the threat of ships being turned away at ports if the Terminal Security Fee levied by the operator is not paid.

The ISPS Code is designed to protect ports and international shipping against acts of terrorism. The ship/port interface is seen as a potential point of weakness, as sea perimeters are especially difficult to control and police.

The IMO agreed to include the ISPS code into the Safety of Life at Sea Convention (SOLAS) at the end of 2002. The code contains detailed security requirements for implementation by governments, port authorities and shipping companies.