Terminal Handling Charge (THC)

What Is a Terminal Handling Charge (THC)?

A terminal handling charge (THC) is a fee levied by port terminals to cover the cost of handling a container, loading, unloading, and moving it within the terminal, at both the origin and destination port.

How Does THC Work?

THC is charged separately from the ocean freight rate and applies at both ends of the voyage: Origin THC (OTHC) covers handling before the container is loaded onto the vessel, and Destination THC (DTHC) covers handling after it's discharged. Depending on the shipping terms (Incoterms) agreed between buyer and seller, either party may be responsible for paying origin or destination THC.

Why THC Matters

THC is a mandatory, often overlooked line item that adds to total landed cost on every ocean shipment, and rates vary by port and can change without much notice. Understanding who's responsible for THC under a given Incoterm avoids billing disputes and surprise charges at destination.