TERMINAL HANDLING CHARGE THC
Definition
The Terminal Handling Charge (THC) is a fundamental fee in the realm of ocean shipping, encapsulating the costs associated with the handling of containers at port terminals. This charge is levied to cover the comprehensive range of services involved in the movement of containers, whether it be from the terminal's entry point to the vessel for export purposes, or from the vessel to the terminal's exit point for imports. It encompasses critical operations such as crane lifts, transport within the terminal, and temporary storage of containers.
Typically, this fee is collected by the terminal operator and is payable by the shipping line, which in turn often passes it onto the freight forwarder or directly to the shipper. The rate of the THC can vary significantly depending on the port, reflecting differences in labor costs, terminal efficiency, and local regulations. It is usually quoted separately based on container size, with distinct rates for standard 20-foot, 40-foot, and 40-foot high-cube containers.
In practice, it is crucial to differentiate the THC from other port-related fees, such as demurrage and detention charges, which are related to the time containers spend at the terminal beyond the allocated free period. Additionally, shipping parties should be vigilant in checking the THC rates applicable at each port of call, as these charges can influence the overall shipping cost significantly. Understanding and accurately accounting for the THC is vital for effective budget management and ensuring seamless logistics operations within the broader supply chain framework.
Summary
Terminal Handling Charge - One of the most important charges in ocean shipping, covering all container operations from terminal entry to vessel loading (export) or from vessel discharge to terminal exit (import). Includes crane operations, internal transfers, and storage. Rates vary by port and are typically quoted separately for 20'/40'/40'HC containers.