Terminal Handling Service - Origin THS-O

Terminal Handling Service at Origin, abbreviated as THS-O, is a critical component of the logistics cost structure associated with international shipping. This fee represents the charges incurred for the handling of containers at the port of origin. Specifically, it covers the processes required to move cargo from the shipper’s location to the terminal and prepare it for loading onto the vessel. These processes include container lifting, stacking, and storage, as well as the administrative tasks associated with documentation and customs clearance.

This fee is typically levied by the port or terminal operator and is paid by the shipper or their appointed freight forwarder. The responsibility for payment is often specified in the shipping contract or the incoterms agreed upon by the buyer and seller. THS-O is applicable in scenarios where containers are being shipped from one country to another, and the cost can vary depending on the port facilities and the level of service provided.

The calculation of THS-O is usually based on a per-container rate, which can differ based on the type and size of the container, such as a standard 20-foot or 40-foot container. It is important to note that THS-O is distinct from similar fees such as Terminal Handling Charge (THC) at the destination, which pertains to the costs incurred at the receiving port.

In practice, shippers and logistics professionals should ensure clarity on who bears the THS-O costs during contract negotiations to avoid disputes. They should also be aware of the potential for variations in this fee due to factors such as peak shipping seasons or changes in port regulations. Understanding these nuances can aid in more accurate budgeting and smoother logistics operations.