Terminal Handling Charge (THC)

Terminal Handling Charge (THC) refers to the fee charged by the terminal operator to the shipping company or freight forwarder for handling, moving, and storing cargo at the terminal/container yard (CY) at the port of origin or destination. Shipping companies typically pass this cost on to the cargo owner. Usage scenarios: Under trade terms such as FOB and CIF, the party responsible for THC differs. For example, in FOB exports, the origin port THC is generally borne by the seller; in CIF imports, the destination port THC may be borne by the buyer, but this depends on the contract. Precautions: THC standards vary by port and shipping company, and may be charged multiple times; cargo owners should clarify the cost allocation in the contract to avoid extra costs. Difference from 'Loading/Unloading Fee': Loading/Unloading Fee usually refers to direct loading/unloading on the ship or vehicle, while THC covers a broader range of operations within the terminal. Difference from 'Port Surcharge': The latter is an additional charge levied by the shipping company to cover special port costs, whereas THC is a basic terminal operation fee. Foreign trade practitioners should verify the THC amount and responsible party when quoting and booking to prevent profit erosion.