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Merchant Haulage Import MHI

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

Definition

The Merchant Haulage Import (MHI) fee is a specific charge incurred in the logistics process when the consignee opts to independently organize the inland transportation of goods from the port of arrival to their final destination. This fee arises due to the consignee's decision to take control over the inland segment of the supply chain, as opposed to using the carrier's services, known as Carrier Haulage. The MHI fee is typically collected by the consignee's chosen freight forwarder or logistics service provider, and is paid by the consignee themselves.

This charge is particularly applicable in scenarios where the consignee has established contracts or preferential arrangements with local transport providers, allowing for greater flexibility and potentially cost-effective solutions. The MHI fee is calculated based on various factors including the distance from the port to the destination, the mode of transport utilized, and any additional services required, such as cargo handling or storage.

In contrast to Carrier Haulage, which involves a comprehensive service package from the shipping line, Merchant Haulage offers the consignee the autonomy to tailor the inland transportation aspect to better suit their logistical and financial needs. However, it is crucial for consignees to be aware of the complexities involved in coordinating with multiple service providers, ensuring compliance with local regulations, and managing potential risks associated with the fragmentation of services.

Practically, consignees should meticulously plan and confirm the availability and reliability of their chosen transport providers, while also clearly understanding the terms and conditions outlined in their agreements to avoid any unforeseen costs or delays. Proactive communication and thorough documentation are essential to ensure a smooth and efficient transport process under the Merchant Haulage arrangement.

Summary

Merchant Haulage Import fee when the consignee arranges inland transport from the port.