THC (Terminal Handling Charge)

Terminal Handling Charge (THC) is a fee charged by the terminal in container transportation for operations such as loading, unloading, handling, and storage of cargo at the container yard and the terminal front. It is usually collected by the shipping company or terminal operator from the cargo interest, and is divided into origin port THC and destination port THC. Under commonly used trade terms such as FOB and CIF, the party bearing THC differs: under FOB, the buyer bears the origin port THC; under CIF, the seller bears the origin port THC; and the destination port THC is usually borne by the buyer unless otherwise agreed in the contract. Notes: THC is different from ocean freight, document fees, and booking fees; it is a local charge independent of ocean freight. THC standards vary significantly across different ports and different shipping companies, and may be charged repeatedly (for example, if already included in a lump-sum fee). It is similar to "terminal fee," but THC specifically refers to container operations. Foreign trade practitioners should clearly specify the party bearing THC when quoting in order to avoid disputes caused by unclear cost allocation.