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Freight Forwarding & Incoterms: Key Terms Explained in Detail

Discover the essential freight forwarding terms and Incoterms that define responsibilities, risks, and cost-sharing in global trade. This glossary provides clear, practical explanations to help you navigate documentation and operational decisions with confidence.

Terminal Handling Charges

Last updated: February 16, 2026
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Terminal Handling Charges (THC) are fees charged by ports or terminal operators for handling cargo within the terminal area. These charges cover activities such as loading containers onto vessels, unloading containers at arrival, and moving containers within the terminal yard. THC reflects the cost of labor, equipment, and infrastructure required to manage cargo efficiently at the port.

THC is typically applied per container and may vary depending on container size, type, and whether the cargo is import or export. The charges also differ from port to port based on local tariffs and operating costs. THC is usually billed separately from ocean freight and appears as a distinct line item on freight invoices. Understanding these charges helps shippers anticipate total shipping costs more accurately.

Terminal Handling Charges support smooth port operations by funding cranes, yard equipment, terminal staff, and safety systems. Efficient terminal handling helps reduce vessel turnaround time and prevent congestion. For logistics planning, timely payment of THC is essential to avoid delays in cargo release or vessel operations.

Overall, THC is a standard and unavoidable part of port logistics. It ensures terminals can maintain reliable handling services and support the flow of international trade. Factoring THC into freight planning helps avoid unexpected costs and ensures smooth cargo movement.

FAQ

Frequently Asked Questions about Terminal Handling Charges

Clear answers to the most common questions people have when learning about Terminal Handling Charges.

They include container loading, unloading, yard movements, and terminal equipment usage during port operations.

Payment responsibility depends on the freight terms and contract and may fall on the shipper, carrier, or consignee.

Yes. Each port sets its own terminal tariffs based on local operating and infrastructure costs.