THC – what is it?

Transshipment or the activity of loading and unloading cargo from a ship is one of the key activities in the shipping industry. Because containerization has become popular and has shaped the modern world, various ports (mainly state-controlled) around the world have taken on the task of hiring their staff or third parties to provide a transshipment service. Ports also undertook to issue invoices to port users for these charges and this charge is currently referred to as terminal service charge. Check what THC is.

What is THC?

Terminal Handling Charge (THC) fees are fees charged by terminal authorities in each port for handling equipment related to container loading and unloading. The amount of terminal service fee is not constant, even on the same shipping line or in port, depends on the total cost of port terminal service in a given location. For example, on the Asia-Europe route, if the service may be different for Shanghai, Singapore, Port Kelang, Hamburg, Rotterdam. The price may also be changed within the same port. In each terminal, the THC price can be different.

THC for selected ports

  • 232 EUR/Container 20’DC/Hamburg/Bremerhaven
  • 232 EUR/Container 40’DC/HC/Hamburg/Bremerhaven
  • 357 EUR/Container 20’Reefer/Hamburg/Bremerhaven
  • 357 EUR/Container 40’Reefer/Hamburg/Bremerhaven

What else to loof for?

The type of containers used has a significant influence. It should not come as a surprise that the fee will be different for dangerous products or refrigerated containers. In the first case, it is often necessary to separate a special area for safe storage and monitoring of the load. On the other hand, handling of refrigerated cargo in the port requires that the containers are connected to a source of electricity, which also causes additional costs. All these factors are included in THC.

THC values are generally valid for one year. Fees apply to each shipment (regardless of who pays it) at the port of origin, destination, and transshipment. Transshipment of THC (let’s say, in point B) is always paid by the carrier who arranges the shipment from point A to point C via point B because their rate for sea freight includes this cost. Typically, terminal handling fees (THC) for exports are collected from the sender by carriers, while releasing the bill of lading after the customs clearance procedures have been completed. The carriers manage fees for handling the import terminal at the time of issuing the delivery order of the recipient before accepting the delivery of goods.

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