Terminal handling charge, almost always written THC, is the terminal's fee for the physical work of receiving, moving, stacking and loading your container. It appears on the origin side and again at destination, it is set locally, and it is one of the least negotiable lines on a freight invoice.
At the load port: receiving the container at the gate, moving it in the yard, storing it for the allowed window, and lifting it onto the vessel. At the discharge port: lifting it off, yard movement, storage within free time, and gate out.
It does not cover customs work, inspection charges, the shipping line's documentation fee, or anything after the gate. Those are separate lines with separate causes.
Two terminals do work, so two terminals charge. Ocean freight pays for the sea leg only. Whether both THCs land on you depends on the Incoterm and how the carrier's tariff is structured on the trade.
| Incoterm | Origin THC | Destination THC |
|---|---|---|
| EXW | Buyer | Buyer |
| FOB | Seller | Buyer |
| CFR and CIF | Seller | Buyer, in most trades |
| DAP | Seller | Seller |
| DDP | Seller | Seller |
The most common surprise is on CIF purchases. Buyers assume the C covers everything to the destination port and then receive an invoice for destination THC, release fees and delivery order charges. That is normal practice, not an overcharge, but it belongs in the budget from the start.
Labour agreements, equipment, land cost, congestion and local regulation all feed into it. The same carrier will publish very different THC at two ports on the same rotation. Small island terminals often charge more per box than large hubs because they move less volume across similar fixed costs.
That is one reason a lane with a slightly higher ocean rate can land cheaper overall: the port pair matters. Look at the total, using the checklist in how to compare ocean freight quotes.
On consolidated cargo the terminal charge is levied on the container, then apportioned across the shipments inside it, usually per cubic metre with a minimum. That is one of the reasons a very small LCL shipment carries a high cost per unit, as covered in what drives LCL shipping costs.
You cannot negotiate the terminal's tariff, but you can control three things. Choose the port pair deliberately rather than accepting the default routing. Avoid storage beyond free time, because the moment you cross it the terminal bills at a different rate entirely. And make sure your quotes state both THCs explicitly, so a low ocean rate is not hiding a high local charge.
Usually not. All-in rates sometimes include it; port to port rates often do not. Ask which applies.
The Incoterm decides. On FOB the seller pays origin THC and the buyer pays destination THC.
Terminals set their own tariffs based on labour, equipment, land and volume. Hub ports and small island terminals price very differently.
The terminal tariff is not. What is negotiable is the rest of the quote and the routing you choose.
Yes, apportioned across the cargo in the container, normally per cubic metre with a minimum charge.
Want a quote where every local charge is visible? Ask us for the breakdown before you book.