IHE Inland Haulage Export

Inland Haulage Export (IHE) is a critical component of the logistics process, representing the cost incurred for the transportation of goods from the shipper's premises to the designated loading port. This fee arises from the necessity to move cargo efficiently from its origin point to the port where it will be loaded onto a vessel for international shipping. The responsibility for arranging this transportation can fall to either the shipping carrier or the merchant, depending on the agreed terms of the shipping contract.

When the carrier arranges the inland transportation, it is referred to as Carrier Haulage (CY). In this scenario, the carrier manages the logistics, including selecting the transport mode and routing, and the shipper pays the IHE fee as part of their overall shipping invoice. Conversely, when the merchant arranges the transport, known as Merchant Haulage, the merchant coordinates these logistics independently, and the IHE fee is paid directly to the transport provider they select.

The application of the IHE fee is contingent on the logistics strategy in place, and its calculation can vary based on factors such as distance, cargo volume, and the mode of transport selected. Unlike other fees that might relate to terminal handling or customs clearance, the IHE specifically covers the in-country journey from the shipper's facility to the port, making it distinct from port-related charges.

In practical terms, shippers and logistics managers should ensure that the terms of haulage are clearly defined in the shipping agreement to avoid misunderstandings and unexpected costs. They must also consider the implications of choosing between Carrier and Merchant Haulage, as each option carries different levels of control, responsibility, and potential for cost efficiency. Understanding these nuances is essential for optimizing supply chain operations and ensuring seamless end-to-end logistics.