Are Port Fees and Taxes a Straight Pass Through Expense?

I was looking at Panama Canal cruises and noticed one where the port fees and taxes were about $750. Does this represent what the line is charged and was some/all of that absorbed as part of the fare in the past?

Although I know the answers to your questions, I suggest you contact HAL directly, so that you will have an authoritative response.

Smooth sailing $ $ $

Yes, the port fees will be added to your cruise cost.

If they adjust (whether up or down) onboard it will be adjusted on your on board account.

Port fees can change or you can miss a port, it's all treated the same.

It will be reflected in your on board account, but, the port fees quoted are what you will pay up front as part of your cruise cost.

I was looking at Panama Canal cruises and noticed one where the port fees and taxes were about $750. Does this represent what the line is charged and was some/all of that absorbed as part of the fare in the past?

These charges are passed thru with amount added to the charge. Panama Canal is high because the per passenger charge works out to about $400 to $500 per person because of canal fees.

I was looking at Panama Canal cruises and noticed one where the port fees and taxes were about $750. Does this represent what the line is charged and was some/all of that absorbed as part of the fare in the past?

The one we are booked on shows about $600 pp for port fees and taxes. As usual, they are subject to change. As another poster said, extra may be added to your account onboard, and overage would be refunded to your account onboard. I don't think any part of those fees have been hidden in the fare in the past.

We received two port refunds on our Alaska cruise this year. $5 and $8. Not a lot but, a nice surprise. This is the only one we recieved in our 9 cruises.

On a couple of our full transit cruises, once we got on the ship, the tax fees were raised and added onto our shipboard account.

We have had it happen for a couple of other ports over the years -- some went up -- some went down.

I was looking at Panama Canal cruises and noticed one where the port fees and taxes were about $750. Does this represent what the line is charged and was some/all of that absorbed as part of the fare in the past?

Yes, they are direct pass through charges. For a PC cruise, fees and taxes tend to be very high. The ship is charged $140 per passenger berth (whether occupied or not) for the basic canal tariff, and then things like the tugs, priority daylight passage for cruise ships, expedited passage, etc, etc, are added on, and you get the figures quoted above for total taxes and fees (though that also includes the taxes and fees for the other ports as well). Canal taxes and fees tend to be somewhat volatile, because as I've said, the basic tariff is based on maximum passenger capacity, and this fixed cost is divided by the number of passengers actually onboard, and this can change during the booking period as more or less bookings are made.

chengkp75,

You know far more that I do about this stuff, but one question. I always thought that the water displacement of each specific ship also went into the calculations. Maybe this is from years ago? of from my mistaken information.

chengkp75,

You know far more that I do about this stuff, but one question. I always thought that the water displacement of each specific ship also went into the calculations. Maybe this is from years ago? of from my mistaken information.

This was the correct formula prior to 2016; however, the rate structure changed to a per/berth calculation with a slightly higher charge per berth for the new canal.

Although I know the answers to your questions, I suggest you contact HAL directly, so that you will have an authoritative response.

Smooth sailing $ $ $

What a useless response and childish to boot. I know but I'm not telling.:p

Suppose everyone followed your fine example?

chengkp75,

You know far more that I do about this stuff, but one question. I always thought that the water displacement of each specific ship also went into the calculations. Maybe this is from years ago? of from my mistaken information.

This was the correct formula prior to 2016; however, the rate structure changed to a per/berth calculation with a slightly higher charge per berth for the new canal.

All ships paid tariff based on the Panama Canal Net Tonnage until 2002. In 2002, the tariff base was changed to allow different charges for different types of ships. Basically, large passenger ships are charged by the berth, while those whose Net Tonnage divided by the number of passenger berths is more than "33" or are under 30,000 net tons, are charged by their Panama Canal tonnage. Again, like Gross Tonnage, this does not relate to "displacement" but to the cargo volume of the ship. At times, the canal may add a surcharge based on displacement if there is a water shortage.

They should be however several years ago I read a book about the cruise industry.

The author claimed that Carnival Corp had made a number of agreements with certain Caribbean ports. The deal was that they would deliver X number of visitors/cruisers per year. In return, Carnival Corp (the corp, meaning all cruise lines in their stable) would then be given back as much as 80 percent of the port taxes paid by cruisers. These rebates would go directly to Carnival's bottom line. No doubt other cruise lines/corps are doing the same.

Yes, they are direct pass through charges. For a PC cruise, fees and taxes tend to be very high. The ship is charged $140 per passenger berth (whether occupied or not) for the basic canal tariff, and then things like the tugs, priority daylight passage for cruise ships, expedited passage, etc, etc, are added on, and you get the figures quoted above for total taxes and fees (though that also includes the taxes and fees for the other ports as well). Canal taxes and fees tend to be somewhat volatile, because as I've said, the basic tariff is based on maximum passenger capacity, and this fixed cost is divided by the number of passengers actually onboard, and this can change during the booking period as more or less bookings are made.

Plus the PC (the Suez Canal is infamous for this also) has one of the highest groups of "canal officials" come on board for "inspections" prior to the ship being allowed passage. We're talking a PCA port captain/oficial de abordaje, two PCA canal inspectors, one or more quarantine officials, one or more sanitation inspectors, a fumigator, etc.

Sometimes I'm not so sure how honest the cruise lines are being about these fees. For example, on a recent Pacific coastal positioning cruise from SoCal to Vancouver, the port fees on HAL were $161 but the exact same itinerary on a ship with a similar number on passengers onboard but different cruise line, was only $70. So if these fees are indeed exact/precise, then why the wide difference?

Plus the PC (the Suez Canal is infamous for this also) has one of the highest groups of "canal officials" come on board for "inspections" prior to the ship being allowed passage. We're talking a PCA port captain/oficial de abordaje, two PCA canal inspectors, one or more quarantine officials, one or more sanitation inspectors, a fumigator, etc.

Is that inspection and quality control on the Lido breakfast perchance?😉 (It was good the first time so gotta confirm it with seconds...).

(Sort of like when DH would run a "quality control check" on a batch of chocolate chip cookies when I used to bake).

Sometimes I'm not so sure how honest the cruise lines are being about these fees. For example, on a recent Pacific coastal positioning cruise from SoCal to Vancouver, the port fees on HAL were $161 but the exact same itinerary on a ship with a similar number on passengers onboard but different cruise line, was only $70. So if these fees are indeed exact/precise, then why the wide difference?

I believe the lines are very honest about the taxes and fees, after the class action suit in the US over these charges a few years ago, where the US has required that only specific charges can be labeled as "port fees and taxes".

As a PP noted, there are agreements with ports to rebate port fees based on contracts with individual cruise lines, but as a result of the class action suit, the after rebate amount is what is charged to the passenger. So, yes, depending on the amount of traffic a cruise line brings to a port, the port and the line can negotiate a different fee schedule than other lines. It also depends on the services used at the port in question, things like water, garbage, security, delivery of supplies, craneage, and a whole host of things that can affect the fees a port charges.

This was the correct formula prior to 2016; however, the rate structure changed to a per/berth calculation with a slightly higher charge per berth for the new canal.

Prior to April 1 2016 the toll for most passenger ships was $134 per passenger berth which was the anticipated new locks opening. After that date the toll went up to $138ppb for ships using the old locks and the rate for ships using the new locks is $148ppb. I have found that most cruise lines charge a little over $300 in taxes, fees etc. for a 14 day full canal cruise, while that same 14 days on a Caribbean cruise will run somewhere around $120-140. So the Canal portion of the $300 taxes and fees will be $180ish.

For example the Zuiderdam is listed as being able to carry 2272 passengers. That is the figure the $138ppb would be applied to for a figure of 313,536. The cruise line is budgeting around $180 which seems a lot more than needed. However as mentioned earlier, the Canal has a long laundry list of other fees that go on top of the 313K figure. The big ones include the reservation for a transit, $35K, daylight transit guarantee $30K, tugs $12K and on and on. Oh, if the Z'dam doesn't have its own commentator for the transit, the Canal can provide one for $475.

What a useless response and childish to boot. I know but I'm not telling.:p

 

Suppose everyone followed your fine example?

Sorry you chose to take my comment that way - I only intended to steer OP in the direction of current "authoritative" information. Since my information dates back to at least 2014 and since changes in the PC taxes/fees occur from time-to-time, I thought it best direct OP to HAL HQ rather than post my own potentially outdated information.

Fortunately for those of us on CC who sincerely want "authoritative" information, we have informed CCers like Copper10-8 and chengkp75. Thank you, Copper10-8 and chengkp75, for your usual helpful advice on this matter.

And thank you, ChucktownSteve, for giving me an opportunity to acknowledge and thank Copper10-8 and chengkp75, for their helpfulness.

Sorry you chose to take my comment that way - I only intended to steer OP in the direction of current "authoritative" information. Since my information dates back to at least 2014 and since changes in the PC taxes/fees occur from time-to-time, I thought it best direct OP to HAL HQ rather than post my own potentially outdated information.

Fortunately for those of us on CC who sincerely want "authoritative" information, we have informed CCers like Copper10-8 and chengkp75. Thank you, Copper10-8 and chengkp75, for your usual helpful advice on this matter.

And thank you, ChucktownSteve, for giving me an opportunity to acknowledge and thank Copper10-8 and chengkp75, for their helpfulness.

I took your post as a way to avoid the senseless arguments that ensue when information is posted In detail.

I have quoted some of the people whose info is accurate, and I have been disputed about that.

Those who disparage your post are some who just want to start disputes.

I took your post as a way to avoid the senseless arguments that ensue when information is posted In detail.

 

I have quoted some of the people whose info is accurate, and I have been disputed about that.

 

Those who disparage your post are some who just want to start disputes.

Thank you for your kind/insightful comments! It is so refreshing to see Posts such as yours.

Smooth sailing :) :) :)

They should be however several years ago I read a book about the cruise industry.

 

The author claimed that Carnival Corp had made a number of agreements with certain Caribbean ports. The deal was that they would deliver X number of visitors/cruisers per year. In return, Carnival Corp (the corp, meaning all cruise lines in their stable) would then be given back as much as 80 percent of the port taxes paid by cruisers. These rebates would go directly to Carnival's bottom line. No doubt other cruise lines/corps are doing the same.

That sounds a little silly.

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That sounds a little silly.

They should be however several years ago I read a book about the cruise industry.

 

The author claimed that Carnival Corp had made a number of agreements with certain Caribbean ports. The deal was that they would deliver X number of visitors/cruisers per year. In return, Carnival Corp (the corp, meaning all cruise lines in their stable) would then be given back as much as 80 percent of the port taxes paid by cruisers. These rebates would go directly to Carnival's bottom line. No doubt other cruise lines/corps are doing the same.

This was what I was wondering about. Sorry to be so suspicious.