Terminal Handling Charges (THC): Best guide [+ how to save on surcharges 2024] (2024)

What are Terminal Handling Charges?

Terminal Handling Charges or THC are fees charged by the shipping terminals for the storage and positioning of containers before they are loaded on a vessel. These services include equipment handling, container positioning, maintenance, storage and the discharging of equipment.

There are many factors that impact the price of these charges at different ports, starting from the port of origin all the way through to the destination port.

The local charges of a terminal directly affect the THCs, so the cost varies from port to port within each country.

Unfortunately, THCs are some of the container fees you just can’t get around. Let’s learn more about what all THCs include in the next section.

What does the terminal handling fee include?

THCs cover the cost of a variety of services provided by the terminal operator, such as:

Handling of containers: This includes the moving of containers from the vessel to the yard and vice versa, including the use of equipment like cranes and forklifts.

Storage: The THCs also include storage for containers at the terminal for a particular time frame.

Documentation: Fees may cover the preparation and processing of documentation related to the movement of containers.

Security: Terminals often charge for maintenance and security at the terminal, including the use of security personnel and equipment.

Maintenance: Maintaining terminal infrastructure and equipment is expensive, so this is often included in the final THCs as well.

The specific services added into the final terminal handling charge will vary depending on the terminal operator and the location. It’s always important to review the fee structure carefully, in order to understand what services are included. Why? To avoid any unexpected surprises, of course!

Who charges terminal handling fees?

First of all, where are THCs charged? Terminal Handling Charges are payable at the port of origin (OTHC), the trans-shipment port, and the destination port (DTHC).

Terminal authorities charge this fee to shipping companies who then send the cost to the shipper or seller.

Now that we have an understanding of who charges the fees, it’s also important to understand why terminals charge them. And where they’re using the money.

It’s simple. Freight terminals are now highly tech-rich. This means lots of expensive, complicated machinery that costs heaps of money to repair. To keep these terminals up and running, regular servicing and maintenance is essential.

Moreover, employees have to be paid for their labor in terminals and ports, and ports need to pay taxes and surcharges. Additionally, as the shipping market grows, there is always room for ports to expand, which requires large amounts of capital for new infrastructure.

Who pays Terminal Handling Charges?

In most cases, the shipping line is responsible for paying the THCs on behalf of the shipper/seller. This cost is then sent on to them. The shipping line usually does this when releasing the Bill of Lading, after the final customs clearance procedure.

On the other hand, the carrier usually pays the THCs at the trans-shipment port, as this is included in their ocean freight cost.

Ultimately, the responsibility for paying THCs varies depending on the contract between shipping parties. It’s important for all players to be aware of these charges and to factor them into their shipping costs and pricing decisions.

The buyer (consigneeWhat is a consignee? When transporting freight (by ocean, air, or land), there are two parties involved — one who is shipping and the other who is receiving the freight. The recipient of the goods b... More) and seller (shipper) will have an agreement/contract on the THCs at the origin and destination ports, before shipping takes place.

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Terminal Handling Charges at top ports

Curious about what you’ll have to shell out at different ports around the world for THCs? Here’s a breakdown of fees for 20ft dry containers in different countries in 2022.

So now you’ve got a better handle on the fees. But what about the different types of THCs? Let’s deep dive into this below.

Types of terminal handling charges: DTHC, OTCH, liner out charge, and import THC

As we mentioned, THCs are present at origin, trans-shipment and destination ports. So let’s learn more about each of these now:

Origin Terminal Handling Charge (OTHC)

OTHCs are paid for port services before a vessel departs the origin port. They’re collected by the terminal operator for container movements from the shipper’s truck to the vessel.

Destination THC (DTHC)

DTHCs are collected at the port of arrival. This fee includes the loading or unloading of containers, and other charges such as storage, monitoring and port facilities.

Import THC

Import THC is paid when goods are imported from one site to another. The terminal authorities charge a specific fee for handling the import of such shipments. The consignorWhat is a consignor? When transporting freight and goods, either by ocean, air, or land, there are two parties involved — one who is shipping the freight and the other who is receiving it. The sende... More and the consigneeWhat is a consignee? When transporting freight (by ocean, air, or land), there are two parties involved — one who is shipping and the other who is receiving the freight. The recipient of the goods b... More pay these THCs.

Terminal Handling Charge (Liner Out Charge)

The term ‘Liner Out Charge’ is common on the West African trade route. It’s a relatively new term and is stated under the Asia-West Africa Trade Agreement (AWATA).

AWATA members include China Shipping Container Lines (CSCL), CMA CGM, Delmas, Gold Star Line, Maersk/Safmarine, Mediterranean Shipping Company (MSC), MOL, and Pacific International Lines (PIL).

AWATA was put in place to make the freight structure more transparent. In some countries in West Africa, the THCs are shown as Liner Out Charge.

It’s also important to understand that different containers and cargo types have different THCs. This is mainly because of the different methods of handling.

Hazardous liquids need special attention for safe storage and monitoring and often incur higher costs. Similarly, out-of-gauge (OOG) cargo may require the use of heavy-duty forklifts or slings due to their large size.

Reefers also demand constant monitoring to ensure a consistent temperature flow to the cargo. In this way, it’s easy to see why special cargo and containers incur higher fees than standard containers carrying standard cargo.