What is THC in Export-Import? Complete Guide for Businesses
What is THC in Export-Import?
What is THC in Export-Import
THC (Terminal Handling Charge) is the fee for container handling at the port charged by shipping lines to shippers or consignees to cover the cost of loading, unloading, storage, and movement of containers within the port.
It typically includes:
- Loading/unloading containers on or off vessels.
- Temporary storage and staging of containers at the terminal.
- Transporting containers between the berth and the container yard.
In practice:
- The port charges THC to the shipping line.
- The shipping line passes this fee to the shipper (exporter) or consignee (importer).
Note: THC is charged per container and may vary based on:
- Container type (20ft / 40ft, dry or reefer).
- Type of cargo.
- Shipping line and port regulations.
>> Read More: Comparison of Common Container Types in Cargo Transport
Common Types of THC
| Fee Type | English Term | Applied To |
| THC at loading port | THC/L – Terminal Handling Charge at Loading Port | Charged to the shipper at the origin port. |
| THC at discharging port | THC/D – Terminal Handling Charge at Discharging Port | Charged to the consignee at the destination port. |
Who Pays THC?
Depending on the shipping contract terms, THC can be paid by:
- Exporter: When hiring a logistics provider to deliver cargo to the port.
- Importer: When hiring a logistics provider from the port to the final delivery location.
- Shipping line or logistics provider: When THC is already included in the freight quotation.
Best practice: Clearly define THC payment responsibilities in the contract to avoid disputes and unexpected costs.
How to Calculate THC in Logistics
How to Calculate THC in Logistics
THC is generally calculated based on:
- Container size (20ft or 40ft).
- Container type (dry or reefer).
- Port or shipping line regulations.
>> Read More: What Are DEM and DET Fees? Understanding the Difference in Logistics
General formula: THC = Port handling charges + Storage charges + Related surcharges
Example Terminal Handling Charge Calculation (Reference only)
| No. | Item | 20’ (USD) | 40’ (USD) |
| 1 | Empty container storage at port yard | 10 | 15 |
| 2 | Seal inspection & reporting | 1 | 1 |
| 3 | Planning & reporting | 1 | 1 |
| 4 | Container arrangement | 0 | 0 |
| 5 | Loaded container storage at port | 2 | 3 |
| 6 | Loading/unloading container from vessel | 57 | 85 |
| 7 | Loading/unloading empty container | 10 | 15 |
| 8 | Overtime charges | 0 | 0 |
| 9 | Lashing/unlashing | 1 | 1 |
| 10 | Counting service | 0 | 0 |
| Total | 82 | 121 |
Terminal Handling Charge (THC) vs. Handling Fee
| Criteria | THC (Terminal Handling Charge) | Handling Fee |
| Definition | Container handling fee at the port. | Cargo processing fee at warehouse or delivery point. |
| Where applied | When containers are loaded/unloaded at seaport. | At warehouses or transit points. |
| Purpose | Covers loading/unloading, port storage, and container movement costs. | Covers sorting, packing, re-labeling, and cargo processing costs. |
| Charged by | Shipping line or port operator. | Logistics company or warehouse operator. |
Tips for Import-Export Businesses
- Confirm whether THC applies at the origin port or destination port.
- Check if THC is included in your freight quote.
- Work with a reliable forwarder to avoid hidden surcharges.
- Budget for THC in your logistics plan to prevent cost overruns.
THC (Terminal Handling Charge) is a mandatory cost in sea freight shipping. Understanding what it is, how it’s calculated, and how it differs from other fees will help businesses control shipping costs and avoid unexpected surcharges.
>> Read More: Summary Table of Logistics Fees During Freight Transport
Need Advice on THC in Export-Import?
Advice on THC in Export-Import
THC is one of the essential costs in international sea freight. Understanding what THC is, how to calculate it, and how it differs from other fees can help your business avoid hidden charges, optimize logistics costs, and plan budgets effectively.
King Freight Logistics Vietnam (KFLV) – your trusted logistics partner, committed to supporting your import-export operations with:
- Detailed THC consultation at both origin and destination ports to avoid unexpected costs.
- Freight rate analysis and optimization for transparent, itemized costs.
- Negotiation support with shipping lines and forwarders to reduce cost risks.
- Optimized shipping schedules to speed up customs clearance.
- End-to-end logistics solutions: customs clearance, international transport, domestic delivery.
Contact us at +84 (0) 938 188 796 or cs1@hcm.kfkingfreight.com for free consultation and a cost-optimized logistics solution tailored to your needs.
Written bykflv.vn
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