What is THC (Terminal Handling Charge)?

THC is the fee charged for all the physical work done to move your container inside a port terminal — from the moment it arrives at the terminal gate to the moment it is loaded onto the ship (at origin), or from when it is unloaded off the ship to when it leaves the terminal (at destination).

Every container that moves through a port goes through a series of operations — unloading, lifting, stacking, storing, repositioning, and loading. None of that is free. THC is how the cost of all that physical port activity gets passed on to the shipper.

Think of it this way: Imagine you drop off a heavy piece of furniture at a warehouse for storage and onward delivery. The warehouse charges you a handling fee — for receiving it, storing it in the right place, and getting it ready for the next truck. A port terminal does the same thing with your container, just at a massive industrial scale. THC is that handling fee.

What exactly happens at a terminal that justifies THC?

When your container arrives at the origin port terminal, a whole sequence of operations takes place before it ever reaches the ship:

The truck carrying your container enters the terminal gate. The container is checked, weighed, and scanned. A massive crane called a Reach Stacker or RTG (Rubber Tyred Gantry) crane lifts your container off the truck and places it in a designated stack in the yard. The container sits in the yard until the vessel arrives. When the ship is ready, a Ship-to-Shore (STS) crane picks up your container from the yard and loads it precisely into the vessel's cargo hold.

At the destination port, the entire process runs in reverse — the container is unloaded from the ship, placed in the yard, and eventually handed over to the receiving truck or freight station.

THC covers all of this physical activity at both ends of the journey.

Origin THC vs. Destination THC — what is the difference?

THC is charged at both the port of loading and the port of discharge. These are two separate charges on your freight invoice.

Origin THC — Charged at the port where your cargo is loaded onto the vessel. Covers all terminal operations from container arrival at the gate to loading onto the ship. Typically paid by the shipper (exporter).

Destination THC — Charged at the port where your cargo is unloaded from the vessel. Covers all terminal operations from unloading off the ship to container exit at the gate. Typically paid by the consignee (importer).

Example — 1 x 20ft container (TEU), India (JNPT) to Germany (Hamburg):

• Base ocean freight rate: $900

• BAF: +$170

• CAF: +$45

• Origin THC (JNPT, India): +$120

• Destination THC (Hamburg, Germany): +$185

• Total freight cost: $1,420

Notice that destination THC at Hamburg is higher than origin THC at JNPT. This is normal — THC rates vary significantly by port, and ports in Europe, North America, and Australia tend to have higher THC than ports in Asia or the Indian subcontinent.

Who sets the THC rate?

This is where it gets slightly complicated. THC can be set and collected by two different parties depending on the arrangement:

The port terminal operator — The actual terminal (e.g. DP World, APM Terminals, PSA) charges the shipping line for handling the container. The shipping line then passes this cost to the shipper as THC.

The shipping line directly — Many carriers bundle the terminal cost into their own THC charge and collect it from the shipper as part of the overall freight invoice. The rate they charge may be slightly higher than what the terminal actually charges them — the difference is a margin the carrier keeps.

This is why THC for the same port can vary between two different carriers. Each carrier has their own commercial arrangement with the terminal and their own THC tariff.

How much is THC?

THC varies widely depending on the port, the carrier, and the container size. There is no universal standard.

As a general guide:

Major Asian ports (Shanghai, Singapore, Busan, JNPT) — $80 to $150 per TEU

Middle East ports (Jebel Ali, Salalah) — $100 to $180 per TEU

European ports (Rotterdam, Hamburg, Felixstowe) — $150 to $250 per TEU

US ports (Los Angeles, New York) — $200 to $350 per TEU

Australian ports (Sydney, Melbourne) — $200 to $300 per TEU

FEU (40ft container) charges are typically 1.5x to 2x the TEU rate at the same port.

These are indicative ranges. Actual THC on your invoice depends on the carrier's published tariff for that specific port.

Is THC included in the freight quote?

Not always — and this is one of the most common sources of confusion and surprise costs in freight.

Some carriers and forwarders quote an all-in rate that includes origin THC. Destination THC is almost always quoted separately because it is paid by the receiver, not the sender.

Some quotes show only the ocean freight rate plus surcharges like BAF and CAF, with THC listed as a separate line item below.

Always ask your freight forwarder to confirm whether origin THC is included in the quoted rate and what the destination THC will be. A quote that looks cheap on ocean freight can quickly become expensive once THC is added.

THC vs. Port Dues vs. Wharfage — what is the difference?

These terms all appear on freight invoices and all relate to port costs, but they cover different things:

THC (Terminal Handling Charge) — Covers the physical handling of your container inside the terminal: cranes, stacking, movement, loading and unloading.

Port Dues — Government-levied charges for using the port infrastructure — the berths, waterways, and navigation facilities. Paid by the ship, but sometimes passed through to shippers on invoices.

Wharfage — A charge for using the wharf (the dock or quay) itself. In some ports this is merged into THC. In others it appears as a separate line item.

Documentation Fee — A separate charge for the paperwork associated with your shipment — Bill of Lading issuance, manifest filing, and so on. Sometimes confused with THC but entirely unrelated.

Why does THC matter to you as a shipper?

It is one of the most consistent and unavoidable costs in ocean freight. Unlike BAF or EBS which fluctuate with oil prices, or PS which is seasonal, THC is always there — on every shipment, at every port.

It can make a cheap ocean rate look expensive. A low base freight rate from a carrier with high THC tariffs may end up more expensive than a slightly higher base rate from a carrier with lower THC. Always compare all-in costs.

Destination THC catches importers off guard. Many importers focus on the freight rate and ignore destination THC — then get surprised when the charges come through at delivery. Knowing destination THC in advance helps you give accurate landed cost estimates to your customers.

THC at major gateway ports is rising. Ports like Los Angeles, Rotterdam, and Singapore have been steadily increasing terminal tariffs due to infrastructure investment and rising labour costs. This feeds through into higher THC for shippers over time.

Conclusion

• THC is charged at both origin and destination ports — two separate charges

• Rates vary widely by port — European and US ports charge significantly more than Asian ports

• THC can be collected by the shipping line or the terminal operator depending on the arrangement

• FEU (40ft) THC is typically 1.5x to 2x the TEU (20ft) rate

• THC is present on every ocean freight shipment — it is not seasonal or emergency-based

• Destination THC is usually paid by the importer (consignee), not the exporter