Terminal Handling Charges (THC) are the fees levied by container terminals for the loading, unloading, and handling of containers at the port. THC is charged at both ends of the trade lane, at the origin port (origin THC, OTHC, billed to the consignor on FOB / FCA shipments) and at the destination port (destination THC, DTHC, billed to the consignee on CIF / CFR / FOB shipments). THC rates vary by terminal, container size, DG status, and carrier. Typical rates run USD 100-400 per 20’GP and USD 150-550 per 40’GP. THC is one of the largest non-freight cost components in container trade and is sometimes overlooked when buyers compare freight quotes.
Typical THC rates by major lane
| Origin / Destination | 20’GP THC | 40’GP THC | DG premium |
|---|---|---|---|
| Shanghai origin | CNY 700-1,200 | CNY 1,000-1,800 | +30-50% |
| Ningbo origin | CNY 700-1,200 | CNY 1,000-1,800 | +30-50% |
| Qingdao origin | CNY 800-1,300 | CNY 1,200-2,000 | +30-50% |
| Long Beach destination | USD 350-450 | USD 500-700 | +50-100% |
| LA destination | USD 350-450 | USD 500-700 | +50-100% |
| Houston destination | USD 250-380 | USD 380-550 | +50-100% |
| Newark/NY destination | USD 320-420 | USD 480-650 | +50-100% |
| Rotterdam destination | EUR 150-250 | EUR 250-400 | +30-60% |
| Sydney destination | AUD 350-500 | AUD 500-700 | +30-50% |
These are indicative; carriers sometimes negotiate THC concessions for volume buyers. Always confirm the specific carrier’s tariff for the specific port pair.
What THC covers (and what it doesn’t)
THC nominally covers:
- Container offloading from vessel to terminal yard
- Container yard storage during the free-time window
- Container loading from yard onto truck or rail (or vice-versa for export)
- Standard handling moves (gate-in, gate-out)
THC does NOT cover:
- Demurrage (charges after free time expires)
- Detention (charges for container held off-terminal)
- Special handling (oversized, overweight, refrigerated power supply)
- Hazardous cargo surcharges (HCS, separate from THC base)
- Terminal stuffing/stripping if cargo is being re-handled at the terminal
The line between THC and adjacent surcharges varies by terminal and carrier. Read the specific tariff for unambiguous understanding.
How THC is billed under different Incoterms
| Incoterm | Origin THC | Destination THC |
|---|---|---|
| FOB (Free On Board) | Seller (consignor) | Buyer (consignee) |
| FCA (Free Carrier) | Seller | Buyer |
| CFR (Cost and Freight) | Seller | Buyer |
| CIF (Cost, Insurance and Freight) | Seller | Buyer |
| CIP (Carriage and Insurance Paid) | Seller | Buyer |
| DAP (Delivered at Place) | Seller | Seller (passes through to seller) |
| DPU (Delivered at Place Unloaded) | Seller | Seller |
| DDP (Delivered Duty Paid) | Seller | Seller (all-inclusive) |
For most standard FOB / CFR / CIF chemical trade, the consignor pays origin THC and the consignee pays destination THC. The split is one of the cost-allocation realities of Incoterms that buyers and sellers learn quickly.
DG THC premium
DG cargo pays a THC premium reflecting:
- Hazmat handling protocols (segregation from non-DG, restricted yard storage zones)
- Limited terminal capacity for DG (most terminals can hold a fraction of DG cargo at the yard at any time)
- Specialised lift equipment (top-handlers and reach-stackers certified for DG)
- Hazmat compliance overhead (manifest review, placard verification)
The premium typically runs 30-100% over base THC depending on the IMDG class. Class 3 flammable liquids are at the lower end; Class 4 self-reactive and Class 6.1 toxic substances are at the higher end. Class 1 explosives and Class 7 radioactive cargo pay even more (200-500% premium) and may require specialised terminals altogether.
How THC catches buyers off guard
Three failure patterns recur:
- THC excluded from “all-in” freight quote. A carrier or freight forwarder quotes “USD 2,500 all-in Shanghai-to-Houston” but excludes destination THC. The buyer pays USD 350-700 destination THC on top, an unwelcome surprise. Always ask “is THC included” explicitly.
- Origin THC not in supplier’s FOB price. A Chinese factory quotes “USD 1,250/MT FOB Shanghai” and assumes origin THC is in the price. The buyer’s freight forwarder bills origin THC separately. The two parties dispute who absorbs the CNY 1,000-1,800 per container.
- DG THC premium not anticipated. Buyer books a DG cargo at the standard THC rate. The carrier bills the DG-premium THC at invoice time. The 30-100% increment can be USD 200-500 per container, disruptive if not budgeted.
Practical sourcing notes
For chemical buyers comparing freight quotes:
- Always normalise quotes to all-in. Include freight, BAF, GRI, peak-season surcharges, origin THC, destination THC, and any DG premiums. The headline freight rate is rarely the full cost.
- Confirm THC by container size and DG status. A 20’GP DG quote and a 40’GP non-DG quote on the same lane can differ by USD 800+ in THC alone.
- For volume buyers, negotiate THC concessions as part of the carrier rate-card. Reductions of 20-40% on the published THC are achievable on high-volume contracts.
Related terms
Demurrage is the post-free-time storage charge separate from THC. Free Time is the period covered by THC. FOB, CIF, and CFR Incoterms determine THC allocation. IMDG Class 3 and other DG classes trigger the THC premium.