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.