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Merchant Haulage Export MHE

Abbreviation
MHE
Short code for this term
Category
Fees & Surcharges
Ocean freight fee type
Index
M
Alphabetical index letter

Definition

The Merchant Haulage Export (MHE) fee is a cost associated with the logistics and transportation arrangements made by the shipper for moving goods to the port of export. This fee arises when the shipper opts to independently organize the inland transport of their cargo, rather than relying on the carrier to handle this segment of the logistics chain. Typically, the fee is collected by the freight forwarder or logistics service provider coordinating the transportation on behalf of the shipper.

The responsibility for paying the MHE fee falls on the shipper, as they are the party choosing to manage the inland logistics component. This scenario often occurs when the shipper has established relationships with local transport providers or seeks to capitalize on cost efficiencies by negotiating their own inland transport rates. The fee structure for MHE usually depends on factors such as distance from the point of origin to the port, the nature of the cargo, and any special requirements for handling or equipment.

MHE differs from Carrier Haulage, where the carrier takes charge of the entire transportation process, including the inland segment, often resulting in a consolidated fee structure. A key distinction lies in the level of control and flexibility the shipper maintains with MHE, allowing for potentially tailored transport solutions but also requiring careful management of logistics details.

In practice, shippers must ensure precise coordination to avoid delays at the port, verify that all transport arrangements meet regulatory and safety standards, and maintain clear communication with all parties involved. Failing to do so could result in increased costs or logistical complications. Understanding these nuances is essential for shippers looking to optimize their supply chain through Merchant Haulage.

Summary

Merchant Haulage Export fee when the shipper arranges inland transport to the port instead of carrier arrangement.