Understanding Terminal Handling Charges (THC) in International Freight

Terminal Handling Charges (THC) are an essential aspect of international shipping that often go unnoticed by shippers. These fees are imposed by terminal operators for handling cargo at ports and container freight stations (CFS). Below is a detailed guide to THC, its calculation, and its significance in international freight operations.

What is THC?

Terminal Handling Charge (THC) is a fee charged by terminal operators for handling containers at the port. THC covers a range of services, including:

• Unloading and loading of cargo.

• Moving and storing containers within the terminal.

• Other handling operations such as lifting, stacking, and equipment usage.

THC applies to ocean freight and is an unavoidable cost in international trade. It is essential for ensuring the safe and efficient transfer of cargo within the port.

How is THC Charged?

THC charges vary depending on several factors:

• Container Type:

  • 20ft containers: Lower charges for smaller shipments.

  • 40ft containers: Higher charges due to larger cargo.

  • Reefer containers: Higher charges due to the need for refrigeration equipment.

• Port Location:

  • Ports in major cities such as Shanghai, Shenzhen, or Los Angeles tend to have higher THC fees due to better infrastructure and higher labor costs.

• Cargo Type:

  • Special cargo like dangerous goods or refrigerated items may incur higher THC due to handling complexities.

Types of Terminal Handling Charges

1. Origin Terminal Handling Charges (OTHC):

   • Charged at the port of departure, usually before the vessel departs.

2. Destination Terminal Handling Charges (DTHC):

   • Charged when cargo reaches the destination port.

3. Transshipment Port THC:

   • If cargo is transferred through another port, THC applies at the transshipment port as well.

Who Pays THC?

The responsibility for paying THC depends on the shipping terms:

• EXW (Ex Works): Buyer pays the THC.

• FOB (Free on Board): Seller usually bears the THC.

In the case of transshipment, the copyright typically covers THC charges at transshipment ports as part of the overall freight rate.

Importance of THC

• Efficiency & Safety: THC ensures that containers are handled efficiently and safely, contributing to the smooth operation of port activities.

• Cost Transparency: THC helps shippers understand the breakdown of logistics costs, enabling better budgeting and planning.

• Operational Support: The fees enable terminal operators to maintain equipment and workforce, thus improving overall port efficiency.

How to Reduce THC Costs

1. Choose Efficient Ports:

   • Select ports with efficient operations and transparent THC charges to reduce unnecessary costs.

2. Optimize Container Loading:

   • Ensure that containers are loaded efficiently to avoid unnecessary container fees, minimizing THC costs.

3. Work with Professional Freight Forwarders:

   • Experienced freight forwarders can help navigate port charges and optimize logistics, ensuring cost-effective and efficient shipping solutions.

Terminal Handling Fees for Shipping from China

Shipping from China to the USA:

• 20ft Container THC: $150–$300

• 40ft Container THC: $200–$400

• Reason: High labor costs, advanced equipment, and strict cargo inspections in US ports.

Shipping from China to the UAE:

• 20ft Container THC: $120–$180

• 40ft Container THC: $200–$300

• Reason: Efficient operations at UAE ports like Jebel Ali, which reduce overall shipping costs.

Shipping from China to Saudi Arabia:

• Chinese Port THC: $80–$120 (20ft), $150–$200 (40ft)

• Saudi Port THC: Varies slightly based on the complexity of local operations.

• Reason: Varies between Chinese and Saudi ports due to different operational costs.

Terminal Handling Charges (THC) play a crucial role in international shipping by ensuring smooth and efficient cargo handling at ports. By understanding THC components, calculating costs, and working with professional freight forwarders, businesses can optimize their logistics operations and reduce unnecessary expenses. For businesses shipping from China or elsewhere, choosing the right port and container specifications can significantly impact overall costs and transit times.

If you require assistance with logistics and freight management, Shunshunfa Logistics can provide professional, transparent services and quotations tailored to your shipping needs.