Original Terminal Handling Charge OTHC

The Original Terminal Handling Charge (OTHC) is a fee imposed at the port of origin to cover the various costs related to the handling of cargo before it is loaded onto a vessel for shipment. This charge is primarily collected by terminal operators or shipping lines and is typically paid by the shipper or the freight forwarder acting on behalf of the shipper. The OTHC encompasses a range of services, including the loading and unloading of containers, storage, and any necessary administrative procedures required to ensure the smooth transition of goods from land to sea transport.

The applicability of OTHC is usually determined by the shipping line or port authority, and the specific amount can vary depending on the port, the type of cargo, and the volume of goods being handled. It is calculated based on standardized rates established by the terminal operator, often influenced by the size of the container and the complexity of handling operations involved.

Unlike other charges such as Delivery Order Fees or Destination Terminal Handling Charges (DTHC), which are incurred at different stages of the shipping process, OTHC is solely concerned with the activities taking place at the origin port. It is crucial for shippers and freight forwarders to understand the distinction, as misinterpretation can lead to unforeseen costs.

In practice, shippers should pay close attention to the terms and conditions outlined in their shipping contract, as these will specify responsibility for OTHC payments. Additionally, maintaining clear communication with logistics partners will help ensure accurate budgeting and avoid disputes over charges. Understanding the intricacies of OTHC and its role in the overall shipping cost structure is essential for effective supply chain management.