Freight Forwarding & Incoterms: Key Terms Explained in Detail

An Inland Haulage Charge (IHC) is the cost associated with transporting containers from an inland point, such as a warehouse, distribution center, or inland port, to a seaport or terminal. It also applies when moving goods from a terminal or seaport to their final inland destination. The IHC is typically a separate charge added to the overall freight cost and is paid by the shipper or consignee, depending on the agreed Incoterms. This charge covers transport by road, rail, or a combination of both.

The IHC is an essential component of multimodal transport and helps to cover the cost of moving cargo over land before it is loaded onto ships or after it is unloaded. Factors that influence IHC include the distance between the inland point and the terminal, the mode of transport used (truck, rail, etc.), and any additional services like customs clearance or cargo handling.

For businesses, the IHC is a key cost to consider when calculating the total landed cost of goods. An accurate understanding of this charge helps with budgeting, cost management, and logistics planning. The IHC is generally negotiated with freight forwarders and carriers, with pricing varying by region, transport mode, and volume.

Overall, the Inland Haulage Charge ensures that cargo is efficiently moved between inland locations and seaports or terminals. It plays a vital role in the smooth coordination of shipments, especially in regions that rely on inland transport for international trade.