What Are the Fees Covered by Terminal Handling Charges?

Have you ever encountered such a situation: the ocean freight has been negotiated, but there are thousands of dollars of Terminal Handling Charges on the bill? This is a common pain point for many B2B companies and cross-border e-commerce sellers in the logistics process. In recent years, with the congestion of global ports and the intensification of supply chain fluctuations, the opacity of the destination port container terminal handling charges (THC) has led to a surge in corporate logistics costs.

In order to help everyone better understand these fees, this article will analyze THC and the various fees it covers in detail from the perspective of professional fulfillment agency service providers, and provide some feasible solutions.

Definition and classification of THC/DTHC

What is terminal handling charge (THC)?

Terminal Handling Charges (THC) are comprehensive fees charged by shipping companies or terminal operators to cargo owners for container loading and unloading, storage, management and other services at the port of departure and destination. It is a service fee incurred during the "stay" of goods at the port and is an inevitable "hidden cost" in international trade.

Three types of THC

Terminal Handling Charges at the Port of Departure (OTHC)

The costs before loading at the port of the exporting country are borne by the shipper, including the lifting of containers from the yard to the ship's side, document processing, etc.

Terminal Handling Charges at the Port of Destination (DTHC/Import THC)

The costs after unloading at the port of the importing country are borne by the consignee, covering unloading, transportation within the terminal, temporary storage and other links. Import THC specifically refers to the terminal handling fees for imported goods, which is similar to DTHC, but focuses more on the import link.

Transshipment THC

The secondary loading and unloading costs incurred when the goods are transferred to the transshipment port are common in multimodal transport.

Key difference

OTHC is usually borne by the shipper, while DTHC is mostly paid by the consignee. If the trade terms are DDP (delivery after duty paid), e-commerce sellers may have to bear double costs at the same time!

What fees are covered by Terminal Handling Charges?

It covers all operating costs directly related to the container during the period when the goods are at the terminal, such as loading and unloading, stacking, equipment use, etc. THC is usually charged by the port or loading and unloading company to the carrier, and then collected by the carrier from the cargo owner.

THC is not a single charge, but a "package charge" for multiple terminal services, including:

Container handling charges

The mechanical and labor costs of lifting from the terminal to the ship/unloading from the ship to the yard or from the terminal to the transport vehicle.

Storage management fee

Temporary storage of containers in the terminal (charged on a daily basis after the rent-free period).

On-site operation fee

The site usage fee required for the translation, stacking and inspection of containers in the port area.

Equipment and labor costs

The cost of using equipment such as port cranes and forklifts, as well as the labor costs of loading and unloading workers.

Document handling fee

Some ports charge a surcharge for document processing when containers enter and leave the gate. Administrative operation costs such as bill of lading verification and manifest entry.

Security surcharge

Compliance expenses such as anti-terrorism inspections and container seals. Port security management fees, including port area security inspections, etc.

Inspection fee

If the goods need to be inspected by customs, additional inspection fees may be incurred.

In addition, the THC fee also includes a period of free storage service, allowing the goods to be temporarily stored in the terminal yard without additional payment.

What is the purpose of terminal handling fees?

Terminal handling fees are mainly used to pay for various costs incurred by ports, terminals or loading and unloading companies when handling containerized goods.

Terminal handling fees are used to pay a series of port expenses, including but not limited to:

Terminal maintenance and equipment updates.

The cost of security personnel and equipment.

Labor costs, that is, the labor costs of staff involved in loading and unloading and management.

Document management, handling documents and documents related to container transportation.

By charging THC, ports and stevedoring companies can maintain their normal operations and provide efficient and safe container handling services to cargo owners.

How to reduce terminal handling costs?

Optimize logistics solutions

According to the nature, quantity and transportation requirements of the goods, choose the appropriate transportation mode and route to reduce the number of transit times and storage time, thereby reducing THC costs.

Negotiate cost discounts

Establish a good cooperative relationship with freight forwarders or shipping companies, and negotiate THC cost discounts through large-scale procurement or long-term cooperation.

Clarify the cost details

Clarify the specific details of THC costs with freight forwarders or shipping companies when booking to avoid hidden charges and unnecessary additional costs.

Choose a reputable port

There are differences in the charging standards for THC in different ports. Choosing a reputable port with high-quality services and reasonable costs can reduce THC costs and improve logistics efficiency.

Chinadivision's international order fulfillment service provider's solution

As a professional international order fulfillment service provider, Chinadivision has rich experience and resources in shipping. We are committed to providing customers with efficient, safe and low-cost logistics solutions. Regarding THC and DTHC and other cost issues, we can provide the following services:

Cost transparency

When signing a logistics contract, clarify the specific details and calculation methods of THC and DTHC and other costs to ensure that customers can clearly understand the various costs.

Optimize logistics routes

According to the nature of the customer's goods and transportation requirements, tailor the best logistics routes and transportation plans for customers to reduce the number of transfers and storage time, thereby reducing THC and DTHC costs.

Negotiate cost discounts

With the cooperation relationship with many shipping companies and freight forwarders, we can strive for more cost discounts and preferential policies for customers.

Full-process tracking service

Provide full-process tracking services from booking, shipment, transit, arrival at the port, customs clearance to distribution to ensure that the goods arrive at the destination safely and on time.

Frequently Asked Questions (FAQ)

Is THC mandatory? Can I refuse to pay?

THC is a customary cost for international shipping, and refusal to pay may lead to detention of goods or legal disputes. However, the rate can be reduced through trade terms (such as FOB transfer to the buyer) or negotiation with logistics service providers.

How to distinguish THC from CSC (Container Service Charges)?

CSC usually refers to specific service charges (such as cold box plug-in charges), while THC is a general operation fee. If both items appear on the bill at the same time, you need to ask the service provider to provide a detailed explanation.

How is DTHC calculated?

Most ports charge uniformly according to container size (20GP/40HQ, etc.), but countries such as the United States and India will subdivide container types (such as open top containers and frame container surcharges).

What to do if the fees are not transparent?

Ask the freight forwarder to provide a detailed fee breakdown to avoid packaging THC with other fees as "local fees".

How to avoid double charges?

Confirm the THC standards before signing the contract, and pay attention to whether the port has additional additional THC.

Let professional service provider Chinadivision be your cost gatekeeper

The complexity of THC/DTHC stems from its strong correlation with port policies, trade terms, and transportation links. Terminal handling charges are an important part of international transportation costs, covering basic services at ports and terminals. By understanding the different types of terminal handling fees and implementing strategies to reduce these fees, B2B companies and e-commerce sellers can optimize their logistics operations and increase profitability. Relying on Chinadivision's global fulfillment network and digital solutions. If you are looking for a reliable partner to simplify your international shipping process and reduce terminal handling fee costs, please consider contacting Chinadivision for customized solutions to meet your unique business needs.