Disbursement accounts are one of those things in the maritime industry that everyone deals with but not everyone talks about. If you’re new to handling port expenses or just want to sharpen your approach, this guide has you covered. Over the years, I’ve learned a few insider quirks—like how some ports won’t let a vessel leave until the final disbursement account is paid. That can throw a wrench into even the best-laid plans.

The truth is, whether you’re a shipowner, operator, or a vessel agent, disbursement accounts keep your port calls running like clockwork. Let’s break this down.

What is a Disbursement Account in Shipping?

A disbursement account is a document put together by the agent that details every cost incurred during a port visit. Think of it as the ultimate bill—a record of all services, port fees, and agency fees the ship has paid (or will pay) while docked. It gives the parties involved full transparency around expenses and funds.

When done right, it eliminates the guesswork and keeps the financial documents tidy.

What Are the Two Types of Disbursement Accounts?

When it comes to managing costs during a port call, there are two types of disbursement accounts you’ll need to know about: Proforma Disbursement Accounts (PDAs) and Final Disbursement Accounts (FDAs). Each serves a distinct purpose and works at a different stage of the port visit. Together, they provide a complete financial picture, giving you clarity and control over expenses.

Proforma Disbursement Account

The proforma disbursement account is the first step. It’s an estimate of what the costs for a port call will look like. Before the vessel even arrives, the agent drafts this to give owners or operators a clear picture of expected fees and expenses.

The beauty of a PDA is that it allows shipowners and operators to plan ahead. You’ll know how much funds to set aside, where the money will go, and what services are needed. This level of preparation helps prevent financial surprises and keeps the operation running smoothly.

For more details on PDAs, check our PDA in shipping blog.

Final Disbursement Account

The final disbursement account comes in after the vessel has completed its port visit. This document outlines the actual costs incurred and compares them to the PDA. Any discrepancies? You’ll see them here.

If there’s a discrepancy between the PDA and the FDA, the agent will clearly outline what caused it—whether it’s additional services, last-minute requests, or unforeseen circumstances like bad weather delaying cargo operations. This document ensures full transparency for all parties involved and helps settle any outstanding payments.

Learn more by checking out our FDA in shipping blog.

Who Uses Disbursement Accounts and How?

Aerial view of a busy shipping port with two large cargo ships docked at piers awaiting finalization on a disbursement account. Numerous shipping containers are stacked in neat rows on the dock. Overhead cranes are positioned next to the ships for loading and unloading containers.

Disbursement accounts are important to many parties involved in the shipping process. Let’s take a look at who uses them and how:

  • Ship Owners and Operators: For shipowners and operators, disbursement accounts are indispensable tools for maintaining control over costs. Port expenses add up fast, and without a clear record, it’s easy to lose track of where the funds go. Whether it’s port fees, bunkering costs, or agency fees, a detailed disbursement account allows shipowners to analyze every payment made during a port visit. This helps them plan better for future voyages and avoid unnecessary expenses.
  • Vessel Agents: Let’s face it – agents are the ones in the trenches. They’re coordinating with port officials, service providers, and shipowners to make sure everything runs smoothly. From preparing the proforma disbursement account to finalizing the FDA, vessel agents manage every detail. They incur and settle the costs for pilotage, cargo handling, and other services. A good agent keeps the shipowner informed, handles unexpected changes like a pro, and ensures all payments are made on time.
  • Port Authorities: Port authorities rely on disbursement documents to confirm that all fees and charges tied to the port call are correct and settled. This includes berthing fees, port charges, and any additional services provided. Accurate disbursement accounts keep the port’s financial records in order and prevent disputes down the line.

You can see that all three roles have their part to play when it comes to disbursement accounts. Now, let’s dig deeper into what these accounts should include and how to execute one.

What Does a Disbursement Account Include?

Disbursement accounts are packed with detailed information that keeps every penny accounted for. From big-ticket expenses to smaller, often-overlooked charges, here’s what you can expect to see:

Port Charges

These are unavoidable. Port services include mooring, berthing, and dockage. Some ports charge based on the size of the vessel, while others factor in the length of the stay. Local regulations may also add additional fees for environmental compliance or security. I always recommend reviewing a port’s fee structure in advance to avoid surprise costs.

Agent’s Fees

The agent is the glue holding everything together during a port visit. They coordinate with local service providers, settle payments, and ensure everything runs smoothly on behalf of the shipowner. Their fees reflect the complexity and scope of their work—and trust me, a reliable agent is worth every penny when you’re juggling tight schedules.

Loading and Unloading Charges

Cargo doesn’t move itself. Whether you’re handling containers, bulk goods, or specialty cargo, loading and unloading require manpower and equipment—both of which come at a cost. Charges can vary depending on cargo type and handling requirements, so this is one area where actual costs often differ from initial estimates.

Promotional image for Base with blue gradient background. Text reads: "More Time. Fewer Errors. Base simplifies accounting and manages your disbursement account, so you can focus on growing your business." A black button below says "Request a Demo.

Bunkering Costs

Fueling a vessel is one of the largest line items in any disbursement account. Bunkering costs include fuel itself, delivery fees, and any related services like testing for fuel quality or coordinating multiple deliveries. It pays to work with reliable suppliers to keep things on track.

Crew Wages and Expenses

While docked, the crew’s needs don’t stop. Wages, meals, and accommodations during a port visit all go into this line item. Whether it’s providing a simple meal service or arranging temporary shore accommodations, these expenses ensure your crew remains functional and happy.

Repairs and Maintenance

Minor fixes, inspections, or unexpected maintenance work often pop up during a port visit. From hull cleaning to equipment checks, these costs are logged under repairs and maintenance. It’s a good idea to keep a buffer for these situations because they’re more common than you’d think.

Provisions and Supplies

Every vessel needs the essentials: food, drinking water, and equipment supplies to stay operational. Provisions are ordered ahead of time, but last-minute adjustments are common. This category ensures full transparency for any purchases made during the port call.

Miscellaneous Expenses

Port visits are unpredictable. Medical services, security fees, compliance with local regulations, and emergency expenses all fall into this category. It’s a catch-all for anything unexpected but necessary to keep the vessel on schedule.

The bottom line? A disbursement account doesn’t miss a thing. From routine services to last-minute hiccups, it covers every expense with full transparency. Having tools in place to manage this effectively can make a world of difference. For reliable solutions, review our blog on how to find good disbursement software.

How To Manage A Disbursement Account

Two construction workers in orange safety vests and helmets stand smiling in front of stacked shipping containers discussing a disbursement account. One is holding protective headphones, and the other has arms crossed. It's a bright day.

Managing a disbursement account involves multiple steps, and while it might seem daunting at first, breaking it down makes it far more manageable. Whether you’re a seasoned vessel agent or just starting out, understanding these steps ensures nothing falls through the cracks.

Step 1: Estimating Costs (PDA)

Before the vessel arrives at the port, the agent prepares the proforma disbursement account. This step requires a sharp eye for detail and thorough communication with all parties involved:

  • Reach out to port authorities, service providers, and suppliers to gather quotes for port charges, bunkering costs, and other services.
  • Factor in local regulations, weather conditions, and the ship’s schedule to build a realistic estimate.
  • Always leave room for contingencies—unexpected changes are common in shipping.

The goal here is accuracy. A solid PDA minimizes surprises and keeps everyone aligned.

Step 2: Approving the PDA

Once the PDA is drafted, it’s sent to the shipowner or operator for approval. At this stage:

  • Shipowners review the estimate and approve the allocation of funds for anticipated costs.
  • If there are discrepancies or concerns, they’re addressed upfront to avoid confusion during the port visit.

Clear communication is key here. The better the PDA aligns with expectations, the smoother the process will be.

Step 3: Incurring Costs During the Port Call

Once the vessel arrives, the agent gets to work. This step involves coordinating and paying for:

  • Pilotage and tugs
  • Bunkering services
  • Cargo handling
  • Provisions, repairs, and any other expenses that arise

Every payment is tracked meticulously. This is where real-world costs often start to diverge from the PDA due to delays, unforeseen issues, or additional services requested by the shipowner or crew.

Step 4: Preparing the FDA

Once the port visit concludes and the vessel departs, the agent prepares the final disbursement account (FDA). This step is about reconciling everything:

  • Compare the actual costs incurred against the PDA.
  • Break down discrepancies and provide explanations for unexpected expenses.
  • Submit the FDA to the shipowner for approval and settlement.

A well-prepared FDA not only ensures accurate payments but also builds trust and accountability between the agent and the shipowner.

By following each step—estimating costs, approving the PDA, tracking real-time expenses, and reconciling with the FDA—you create a seamless workflow that keeps all stakeholders informed and confident.

How Base’s Disbursement Software Helps

Aerial view of a busy port with multiple cranes loading and unloading colorful shipping containers from several large cargo ships awaiting a finalization of a disbursement account. The calm blue sea surrounds the port, and rows of containers are neatly stacked along the docks.

Handling disbursement accounts manually isn’t just tedious—it’s risky. With so many moving parts in a port call, errors, missed fees, and delayed payments can create bigger issues than you’d expect. This is where a reliable system like Base comes into play.

Here’s how Base makes managing disbursement accounts easier:

  • Centralized Financial Visibility: All your port costs, expenses, and payments are tracked in one place, giving you a clear overview of your finances.
  • Streamlined Invoice Processing: Reduce errors and save time by automating invoice management for all services rendered.
  • Enhanced Budget Control: Compare PDA estimates against FDA outcomes in real time to identify overspending.
  • Disbursement Approval Workflows: Built-in workflows ensure quick approvals and funds disbursement.
  • Real-Time Reporting: Stay on top of actual costs and make informed decisions with up-to-date reports.

With Base, you’re not juggling spreadsheets or scrambling to reconcile expenses. Instead, you’re equipped with a user-friendly interface that delivers accuracy, transparency, and control over every dollar spent.

Learn more about taking your accounting to the next level with our blog on accounting software for shipping companies.

Final Take on Disbursement Accounts

Port workers walking away from camera while cargo awaiting a finalization of a disbursement account is unloaded. A forklift carries a container overhead, while speed limit signs are visible on the side.

Disbursement accounts are the backbone of financial transparency and operational efficiency in the maritime industry. Whether you’re managing costs as a vessel agent, shipowner, or operator, understanding the intricacies of PDAs and FDAs ensures smooth port visits and prevents costly surprises. By following a structured approach—from estimating costs to reconciling final expenses—you can keep operations on track and build stronger relationships with stakeholders.

Accuracy and communication are everything. A well-managed disbursement account doesn’t just document expenses; it helps you plan better, control budgets, and foster trust. And with tools like Base, managing these accounts becomes easier, faster, and more reliable.

Key Takeaways

  • What is a Disbursement Account? A detailed record of all port call expenses, ensuring transparency and accountability.
  • Types of Accounts:
    • PDA: Estimated costs before the vessel arrives.
    • FDA: Final reconciled costs after the port visit.
  • Who Uses Them? Shipowners, operators, agents, and port authorities to manage and track expenses.
  • Key Steps: Estimate costs, approve the PDA, track expenses during the port call, and reconcile with the FDA.
  • Why Use Software? Tools like Base automate workflows, reduce errors, and provide real-time financial visibility for better cost control.

Frequently Asked Questions

What is an example of a disbursement account?

An example of a disbursement account might involve a vessel calling at a busy port for bunkering and cargo operations. The port agent would produce disbursement accounts detailing costs such as port charges, pilotage, bunkering services, crew expenses, and agent fees. For instance, the total account could include $10,000 for port charges, $3,500 for pilotage, and $20,000 for fuel. The disbursement account plays a critical role in maintaining transparency and ensuring all expenses are tracked for a smooth operation of the port visit.

What is a proforma disbursement account?

A proforma disbursement account (PDA) is an estimated cost breakdown prepared before a vessel’s arrival at the port. It provides shipowners and operators with a clear view of anticipated expenses, including port fees, bunkering costs, and agency charges. Agents reduce reliance on error-prone manual processes and ensure funds are allocated appropriately by delivering this estimate in advance. It is a proactive step that minimizes surprises and lays the foundation for a smooth operation during the vessel’s stay.

What is the purpose of a disbursement account?

The purpose of a disbursement account is to provide a detailed, transparent record of all expenses incurred during a vessel’s port call. Disbursement accounts compare estimated costs (PDA) to the final costs (FDA), helping stakeholders identify discrepancies, analyze spending, and improve future budgeting. They also reduce dependency on manual processes and ensure financial accountability and trust between vessel agents, shipowners, and service providers. Ultimately, disbursement accounts are essential for keeping port operations organized, efficient, and cost-effective. Need to know more? Check out our PDA vs FDA in shipping guide.