What is Terminal Handling Charge?
A terminal handling charge (THC) is the fee for handling a container or cargo at a port terminal, covering moves between the ship and the container yard and related terminal services. In liner shipping the terminal operator bills the carrier for these services, and the carrier passes them on as a separate origin THC (OTHC) or destination THC (DTHC), usually at a tariff amount that need not match the carrier's actual cost. US marine terminal rules define handling as physically moving cargo between point of rest and any place on the terminal other than the end of ship's tackle. Air cargo terminals levy comparable handling charges per kilogram or per shipment. THC is separate from wharfage, which is levied on cargo crossing the wharf, and from storage charged after free time ends.
Why it matters for forwarders
Who finally pays THC is a matter for the sales contract: Incoterms 2020 sets out each rule's costs in articles A9 and B9, and disputes arise when, for example, a CFR or CIF buyer is billed destination THC that the seller's freight contract already covered. Every quote should state whether origin and destination THC are included, at what amount and in which currency, because carriers adjust THC separately from base freight. In US tariffs, changes in charges the carrier does not control and merely collects, including terminal services, are exempt from the 30-day notice that applies to other increases. Destination THC must normally be paid before the delivery order is released, so a disputed THC can hold up collection and generate demurrage. Reconcile THC invoices against the published tariff, since charging the same THC to both shipper and consignee is a recurring billing error.