Ocean Freight Surcharges

THC Surcharge (Terminal Handling Charge)

THC (Terminal Handling Charge): Charges for container handling at port terminals. When it applies, typical range, and who pays under common Incoterms.

Code
THC
Name
Terminal Handling Charge
Typical range
$100-$400 per TEU (varies greatly by region)
Routes
All containerized ocean routes

Terminal Handling Charges (THC) are fees charged by port terminals for the handling of containers during loading and unloading operations. THC covers the cost of moving containers between the ship and the container yard, including crane operations, yard handling, and temporary storage.

THC is divided into two components: • OTHC (Origin THC): Charges at the port of loading for receiving the container, storing it in the yard, and loading it onto the vessel • DTHC (Destination THC): Charges at the discharge port for unloading the container from the vessel, yard storage, and preparing it for pickup

THC rates vary significantly by port and region. Ports in developed countries with higher labor costs and more sophisticated equipment typically charge higher THC. Major transshipment hubs may have competitive THC rates to attract cargo.

THC is separate from the ocean freight rate and is always charged regardless of the freight terms negotiated.

When THC applies

Applied on all containerized shipments at both origin and destination ports.

Who pays THC under common Incoterms

  • FOB: buyer
  • CIF: buyer
  • EXW: buyer
  • DAP: seller

How to minimize THC

  • Use ports with lower THC rates when feasible
  • Negotiate THC in long-term contracts
  • Consider nearby alternative ports
  • Optimize container utilization to reduce per-unit costs

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Frequently asked questions

What is the THC surcharge?

THC stands for Terminal Handling Charge. Charges for container handling at port terminals.

When does THC apply?

Applied on all containerized shipments at both origin and destination ports.

How much is THC?

The typical range is $100-$400 per TEU (varies greatly by region). Confirm the current amount with your carrier or forwarder.