Terminal Handling Charges (THC) is the charges collected by terminal authorities for the storage, loading, and unloading of goods for transport.
These charges go to the freight terminal operator as compensation for their service to the cargo being transported, to fund the operations of machinery, equipment, and mechanisms that go into loading or unloading cargo, to maintain infrastructure and equipment, to settle taxes and surcharge, as well as to pay employees.
Generally, for regular containers, terminal handling charges are fixed by ports and changed annually.
The terminal handling charges calculation, however, is different when it comes to goods such as:
Refrigerated containers (reefers) – need electrical connections
Out-of-gauge cargo (OOG) – needs special handling equipment and expanded storage space
Hazardous materials (HAZMAT cargo) – needs sequestering and temperature-controlled storage
Normally, Terminal handling charges (THC) for exports is collected from shipper by shipping lines while releasing Bill of Lading after completion of export customs clearance procedures.
The import terminal handling charges is collected by shipping carriers at the time of issuing delivery order to consignee to take delivery of goods.
Tare weight is the weight of an empty container. The term unladen weight is sometimes used in place of tare weight. Tare and unladen weight means the same and it is the weight of the container when it is not loaded with cargo.
The tare weight of a container is shown on the container outside along with the other essential details of the container. Typically, the container tare weight when added with the weight of the cargo gives the gross chargeable weight.
To start the cargo storage in the 20ft and 40ft Containers for Sea Export:
The length and width of the inside-container dimensions of the ocean container is to divide by the length and width of the package. This is done to determine the optimum number of packages the container can accommodate and the best-possible loading configuration.
It may be that the length of a package is loaded along the length of the container or, alternatively, along the width of the container, whatever provides the best storage. In some cases, alternating the length of one package with the width of the next along the length of the container, in short a combination pattern, will achieve the optimal load configuration.
This above scenario works well when all packages are homogenous. In the case of a consolidation container, the variety of merchandise and cargo sizes requires each type of package to be evaluated for both dimensions and weight distribution.
In most cases, packages must remain upright and, therefore, cannot be loaded on their length or width; thus, the height value is usually a constant. In order to determine the maximum number of packages that can be loaded, the user first divides the inside-container’s dimensions (length, width and height) by the package’s same dimensions, then multiplies the three resulting figures, rounded up or down, to determine how many packages can be loaded.
Example Shipment:
Packages to be loaded into a 40-ft high cube container
Dimensions of each package: Length 2.0 m x width 0.5 m x height 0.5 m
Loading packages in this manner will allow us to load 120 packages into the 40-ft high cube ocean container. We can load 6 packages in the length of the container, four packages in the width of the container, and five rows/layers of packages high.
To note, prior to formulating any loading plan, we should always check the actual inside dimensions of the container, as well as the maximum payload weight with your ocean carrier.
Maximum payloads given by carriers and shown on the doors of containers are the physical limits of containers, i.e., the weights they can carry safely.
It is to be note that we may not load the maximum payload, depending on:
The weight limits of handling equipment at relevant ports and terminals
The weight limits on roads (and rails) at origin and destination, to/from the port and/or terminal.
Perishables and refrigerated goods (for example, fruits, vegetables, cut flowers, fresh seafood, live lobsters, some pharmaceuticals, vaccines)
High-value products (jewelry, coins, bank notes, apparel and accessories)
Fragile goods (electronics, computers, telecommunication equipment and other technology products, art work)
Time-sensitive items, like new products for market testing, samples or displays sent to trade fair, just-in-time deliveries, tools and equipment for emergency repairs, and relief goods.
Let us see the parameters to look into when exporting and importing through airlines:
Shipment Size
In air freight, knowing the measurements of a shipment is more critical than with other modes of transportation.
For example, if it is impossible to load the package through the cargo door of an aircraft, then it cannot be shipped by regular air freight. To note, one of the main elements to watch for is height; the rule of thumb is that as soon as the cargo exceeds 60-in in height, there is a need to look for a freighter service.
Likewise, if a shipment is particularly heavy (dense), it may need to have its mass spread over a larger area through the use of pallets or some other means. Failure to do so could cause dangerous stresses to the aircraft framework.
Another consideration is to ensure that the cargo can be accommodated on the unit load devices (ULDs) of the airline(s) being used for the shipment.
Products Carried by Airlines Valuables
Any shipment with a known value of over USD $1,000.00/kg is considered a valuable shipment, regardless of the commodity.
In addition, the following commodities are always considered valuable shipments:
Negotiable paper, including money or currency notes, stocks and bonds, travellers cheques.
When a shipment meets the definition of valuable cargo, its class will determine handling requirements; classes represent the known value of the shipment.
Temperature Variations
Airlines do maintain refrigerated storage units (walk-in refrigerators in cargo handling warehouses) and offer refrigerated cargo units (containers).
Also some airlines and/or their truckers provide temperature-controlled vehicles for the dispatch of perishables during extremely cold or hot weather.
The airlines do make every effort to keep exposure of the cargo to extremes of temperature and adverse weather conditions to an absolute minimum.
It is also important that shippers be aware of the general temperature variations between the points of origin and destination, and that most containers and pallets are stationed in advance near the passenger loading gate for some time prior to loading of the aircraft.
Temperature ranges from -40°C to +55°C could be encountered during transit. To prevent damage to temperature-sensitive cargo, the use of temperature-controlled containers is recommended.
Altitude Pressure Variations
The cabin interior of an all-cargo jet is normally pressurized to a level equivalent to that of between 5,000 and 8,000 ft above sea level.
The cargo compartments of combination aircraft are normally pressurized to the 8,000-ft level, creating a pressure differential of four lb/in2 compared with sea level. This is a suitable pressure for baggage, mail and most solid freight, but may be unsuitable for certain liquid cargos.
Under extreme conditions (e.g., in non-pressurized cargo compartments), the pressure reduction can reach a differential of eight lb/in2 as compared with sea level, which can affect certain liquid cargos unless they are adequately sealed. Sufficient room for the expansion of liquids should always be allowed within the container (can or bottle).
Products Carried by Airlines Perishables
Different types of perishable goods have their own ideal temperature for transport and storage. Packaging must be able to accommodate these temperatures.
The air carrier’s cargo representative can provide detailed packing instructions so that the ideal transport temperature can be maintained for that type of cargo.
Temperature control is the single most important factor in guaranteeing the fresh arrival of perishable goods.
Most cargo terminals provide such facilities, but it is important to check with the chosen airline whether the destination airport is equipped with such a facility and to use temperature-controlled containers, when available.
Dangerous Goods
Most goods that are classified as dangerous under the IATA/ICAO Dangerous Goods Regulations can be safely transported by air provided that the IATA/ICAO Dangerous Goods Regulations are strictly adhered to with respect to a number of limitations for carriage, packaging, quantities, etc.
Some dangerous goods are too dangerous to be carried on passenger and cargo aircraft; others may be carried only on cargo aircraft and/or in limited quantities.
Lithium Batteries
Lithium batteries carried on an aircraft could pose a serious threat to aircraft safety. Lithium batteries are classified as miscellaneous dangerous goods.
There are various types of lithium batteries, and they can be carried inside a piece of equipment, separately with a piece of equipment or on their own.
The IATA/ICAO Dangerous Goods Regulations must be strictly followed, especially with respect to shipping quantities, proper packaging and documentation.
In export goods by road transportation, the main commodities transported by road are mainly manufactured and miscellaneous goods, machinery and electrical equipment, automobiles and other related materials, agricultural and food products, plastics and chemical products, and base metals and articles of base metal, forest products, liquefied natural gas and petroleum products, waste and scrap, cement and non-metallic products and minerals, ores and concentrates.
Different Types of Road Vehicles used to export Goods by Road Transportation
Trailer: Trailers are powered vehicles with trailing body attached to carry goods. Trailer vehicles are used primarily for longer hauls. There are several kinds of trailers adapted to transporting different merchandise. The main ones are the van body semi-trailer, which can be isothermal, heated or refrigerated; the moving van semi-trailer that can also be used for transporting electronic products; the platform semi-trailer (or “flatbed”), which can be equipped with fixed or removable slats and adapted to hauling lumber, logs, etc.
Container Chassis trailer: These are special trailers built to carry marine containers. They are similar in principle to a flatbed trailer, but instead of a “deck” to which the container is attached, there is a special frame in the shape of an “I” onto which the container is placed. There are special locking mechanisms that secure the container to the chassis located at the four bottom corners. These locking devices allow the driver to quickly secure the container to the chassis.
Straight trucks: Straight trucks are powered vehicles with freight-carrying bodies attached. Straight trucks operate primarily on city streets and local roads and, consequently, are primarily used by local cartage companies.
Covered Van: These vehicles are used to carry goods in a covered way in security. The doors of the covered van can be locked with one time lock.
How Trucking Rates and Charges are calculated ?
For trucking freight charges, chargeable weight of the shipment needs to be calculated.
Let us see in the below example how chargeable weight is calculated in a LCL trucking cargo.
Example:
Number of pieces: 1 wooden crate
Dimensions: Length 36 in x width 24 in x height 24 in
Weight: 550 lb
Step 1: calculate the actual weight
Multiply the number of pieces in the shipment by the weight of each piece. 1 piece x 550 lb = 550 lb
The actual weight of this shipment is 550 lb.
Step 2: calculate the volume weight
Calculate the cubic inches of the shipment
Multiply the number of pieces in the shipment by their length, width, and height (in inches). 1 piece x 36 in x 24 in x 24 in = 20,736 in3
Convert cubic inches to cubic feet
Divide the cubic inches by 1,728 (number of cubic inches in one cubic foot) 20,736 in3 ÷ 1,728 = 12 ft3
Calculate the volume weight
All truck rates are based on a minimum density of 10 lb/ft3 (with the exception that some trucking companies in the Atlantic provinces allow 15 lb/ft3).
Multiply the cubic feet x 10 lb/ft3
12 ft3 x 10 lb/ft3 = 120 lb
The volume weight of this shipment is 120 lb.
Step 3: Determine the chargeable weight
The chargeable weight is the HIGHER of the actual weight or volume weight. The actual weight is 550 lb and the volume weight is 120 lb.
The chargeable weight of this shipment is 550 lb (which was the actual weight).
This chargeable weight (550 lb) will be used to determine the freight charges.
Step 4: Calculate the freight charge
Divide the chargeable weight by 100, and then multiply by the applicable cwt rate.
550 lb ÷ 100 x CAD $11.65 (an example of a cwt rate) = 64.075 = CAD $64.08
The freight charge for this shipment is CAD $64.08.
Factors Affecting the Road Transport Rates
There are many factors affecting the road transport rates, below are some of them.
Carrier’s cost
Competition with other modes of transport or other road carriers
Value of the merchandise
Annual volume
Size per shipment
Total cargo weight
Spring-season weight restrictions
Equipment required
Delivery requirements (many drops vs. through movement)
FTL vs LTL Shipments
In FTL shipments, the customer has enough cargo to fill a truck or has a partial load but prefers to use a dedicated truck. This might be the case, for example, with shipments of 10 or more pallets, or for high-value cargo, fragile items, unpacked goods or when time is of the essence (urgent shipment or fixed-time delivery).
LTL is used for small shipments from multiple customers that are consolidated into full loads or near-full loads moving between major centers.
LTL is ideal for small businesses, as the transportation cost is shared with other shippers and each one pays for his portion of the truck, based on the amount of product shipped.
The truck bill of lading is the most important transportation document in the shipping process. It is both a receipt and a contract.
A properly completed and signed bill of lading is a legal document that shows that the carrier has received and accepted the freight as described and is obligated to deliver the goods in good condition to the consignee as stipulated in the bill of lading.
One bill of lading is required for each shipment. Every bit of information on the bill of lading is important. It dictates the actions of the transport company all along the route and who is responsible for what.
The truck bill of lading does have some basic characteristics that are common to all:
It is a receipt of goods for shipment
It is a contract of carriage
It does not confer title of ownership of the goods.
