THC
Terminal Handling Charge
THC is a charge for handling a container at the port terminal, for example lifting it on or off the ship and moving it in the yard.
In plain words
There is a THC at the port of loading (origin THC) and another at the port of discharge (destination THC). The shipping line usually collects them and pays the terminal. The amount depends on the port and the container size and type.
Who pays which THC depends on the Incoterms rule and the sales contract. For example, under FOB the seller usually pays the origin THC and the buyer pays the destination THC. Always ask whether a freight quote includes THC, so you can compare quotes fairly.
Example from real shipping
A buyer compares two sea freight quotes from China to Mersin. Quote A is lower, but it does not include the destination THC. Quote B includes it. After adding the THC to quote A, the buyer sees that quote B is actually cheaper.
Related terms
- BAFBAF is a surcharge on sea freight that covers changes in the price of ship fuel (called bunker).
- FOBUnder FOB (Incoterms® 2020), the seller clears the goods for export and loads them on board the ship chosen by the buyer, at the named port of shipment. The risk passes to the buyer when the goods are on board.
- Landed costLanded cost is the total cost of getting a product to your door: the price of the goods plus freight, insurance, duties, taxes, and all other fees on the way.
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Request a QuoteThis glossary is general information, not legal or customs advice. Rules, fees, and practice can differ by carrier, port, and country.