Glossary

Terminal Handling Charges (THC)

Definition

Terminal Handling Charges (THC) are fees levied by terminal operators for handling cargo at a specific terminal. These charges typically cover the cost of services related to the loading, unloading, and storage of goods at the terminal facility, as well as any necessary administrative tasks. The cost can vary depending on the type of cargo, the terminal, and the specific services provided. THCs often apply to containerized cargo, including the lifting of containers on and off vessels, moving them within the terminal, and stacking them in the storage area.

— sennder Team

FAQ

Terminal Handling Charges are usually borne by the shipper or consignee, depending on the agreed Incoterms between the parties involved. In some cases, the carrier may include THC as part of their freight rate, while in others, it may be billed separately to the shipper or consignee.
Terminal Handling Charges can significantly impact the overall transportation costs of a shipment, especially for smaller shippers who may not have the volume to negotiate favorable rates with terminal operators. It is essential for shippers to be aware of the applicable THCs at the origin and destination terminals to accurately estimate their total logistics costs and make informed decisions.
No, Terminal Handling Charges can vary greatly between different terminal operators, locations, and types of cargo. Factors such as local labor costs, equipment availability, and terminal infrastructure can influence the amount charged by terminal operators.
Example or usage in road freight logistics

A trucking company transports a shipment of goods to a port terminal for export. Upon arrival, the cargo is unloaded from the truck and transferred to a storage area. The terminal operator charges the exporter Terminal Handling Charges for the unloading and storage services. At the destination port, the consignee is also billed for Terminal Handling Charges by the terminal operator at that location.

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