Terminal Handling Charge (THC)
The Terminal Handling Charge (THC) is the fee a port terminal levies for handling a container — moving it between the ship and the container yard, and associated positioning — at both the load and discharge ports. It is charged per container and appears on top of the basic ocean freight, split into an origin THC (OHC) and a destination THC (DHC).
THC covers the terminal's crane, yard and equipment work, and is one of the largest of the local charges that surround ocean freight. Who pays which side depends on the agreed Incoterms and the freight quote — a source of frequent confusion and disputes, since a cheap-looking sea freight rate can be offset by high THCs at each end. Understanding and correctly allocating THC is essential to comparing quotes and calculating true shipment cost.
THC is where a "cheap" freight rate quietly gets expensive — it is a major local charge at both ends, and confusion over who pays it causes real disputes. Knowing what THC covers and how Incoterms allocate it is what lets a shipper compare quotes honestly and avoid surprises on the invoice.
What is the difference between OHC and DHC?
OHC is the origin (load-port) terminal handling charge; DHC is the destination (discharge-port) one. Together they make up the THC.
Who pays the terminal handling charge?
It depends on the agreed Incoterms and freight quote — which is a common source of confusion, so it should be clarified up front.