T.H.C. T

Terminal Handling Charge (THC) is a crucial component in the overall cost structure of ocean freight logistics. It refers to the fees imposed by terminal operators for the handling of containers at port terminals during the loading and unloading processes. These charges are levied to cover the costs associated with the use of port facilities, labor, and equipment necessary for the efficient transfer of containers between ships and the terminal infrastructure.

THC is typically collected by the shipping lines from the shippers or consignees, depending on the terms of the sales contract, such as FOB (Free On Board) or CIF (Cost, Insurance, and Freight). The responsibility for payment is usually specified in the shipping agreement, and it is crucial for both parties to be aware of this to avoid disputes.

The applicability of THC arises in scenarios where containers are being moved through ports, and it is calculated based on the number of containers handled. Unlike other charges such as demurrage or detention, which are related to the time containers spend at the terminal beyond agreed periods, THC is specifically associated with the physical handling of the cargo.

When managing logistics costs, it is essential to differentiate THC from other terminal-related expenses to ensure transparent cost analysis and budgeting. Shippers and freight forwarders must pay close attention to the terms outlined in contracts and the conditions at different ports, as THC rates can vary significantly based on location, terminal operator policies, and regional economic conditions. Being aware of these factors can aid in accurate forecasting and efficient logistics planning.