THC (Terminal Handling Charge)
A terminal handling charge, or THC, covers the cost of moving your container through the port terminal at origin or destination.
Definition
THC is charged by the terminal operator, usually collected by the carrier, for handling the container between the gate, the yard and the vessel. There is normally one at origin and one at destination.
It is a fixed charge per container rather than per CBM, which is why destination charges weigh more heavily on small LCL and short-sea shipments than on a full container of high-value goods.
Example
A quote showing 1,200 USD ocean freight may carry 150 USD origin THC and 250 USD destination THC, raising the true cost by a third before any inland delivery.
When you will come across it
- Building a landed cost figure and discovering the freight line was not the whole cost
- Comparing FCL against LCL where destination charges differ sharply
- Reviewing a forwarder's quote to see which charges are included and which are extra
Frequently asked questions
Is THC included in my freight quote?
Not always. Some carriers quote an all-in rate and others list THC separately, so always check whether the figure you are comparing includes terminal handling.
Why is destination THC often higher than origin?
Handling costs, labour rates and terminal efficiency vary by port, and destination terminals frequently charge more than origin terminals on the same lane.
Who pays THC under FOB or CIF terms?
It follows the Incoterm. Under FOB the buyer generally bears destination THC, while origin charges fall to the seller. Confirm with your counterparty because practice varies by trade.