Destination Charge refers to the total of various fees other than ocean freight that are collected from the consignee by the carrier, port, or local agent after the goods arrive at the destination port. Common items include Terminal Handling Charge (THC), document fee, customs clearance fee, devanning fee, demurrage/container detention fee, port security fee, etc. Usage scenarios: Under trade terms such as FOB, CIF, and CFR, destination charges are usually borne by the buyer, but if the buyer and seller agree that the seller pays, this must be clearly stated in the contract. Notes: The items and standards of destination charges vary greatly among different ports, shipping lines, and freight forwarders. The shipper should obtain a detailed destination charge list from the freight forwarder before booking and inform the consignee to avoid refusal of goods or port delays due to fee disputes; at the same time, distinguish destination charges from origin local charges, which are collected at the port of origin. Difference from ocean freight: ocean freight is the basic transportation fee, while destination charges are miscellaneous fees arising from extended transportation services. Difference from DDP/DDU: Under DDP, the seller bears all destination charges and import duties; under DDU, the seller bears destination charges but not duties.
📝 Examples
1. This quotation is FOB Shanghai. Destination charges (such as THC, document fee, etc.) shall be paid separately by the consignee at the destination port. Please confirm the specific amount with the shipping line in advance. (Note: Under FOB, the seller does not bear destination charges, so the buyer should be reminded.)
2. Due to the increase in destination charges, we suggest changing the trade term from CIF to CIP and listing the destination charge items in the contract to avoid additional disputes. (Note: When destination charges fluctuate greatly, it is important to adjust the term or clarify cost sharing.)
💡 Foreign Trade Tips
Foreign trade terms are the foundation of international business communication
Trade practices may vary slightly by country; pay attention when using them
When using terms in contracts, specify the applicable version (e.g., Incoterms 2020)
For unfamiliar terms, use GlobalSync's multilingual email helper to confirm with your partner