Terminal handling charge
THC
A terminal handling charge is a fee the carrier collects from the shipper or consignee. It recovers the cost of handling a container at the port terminal.
What it is
A terminal handling charge, or THC, is a charge collected by a shipping line or NVOCC to recover what the terminal operator bills for moving a container through the port. At origin it covers receiving the loaded container and loading it onto the vessel. At destination it covers discharging the container and delivering it from the yard. It is billed separately from ocean freight.
How it works in practice
THC is normally quoted per container, with different amounts by container size and type, such as standard, reefer or out of gauge equipment. Origin THC is typically paid by the shipper and destination THC by the consignee, although the sale terms between buyer and seller decide who finally bears each. Amounts are set by each carrier for each port and change over time, so they vary from line to line.
Why it matters
For an agent, THC is both a revenue item collected from customers and a cost item paid to the terminal or remitted to the principal, and the two rarely match exactly. Recording THC revenue and THC cost separately shows the margin on handling and supports the agent's account with the line. Local tax treatment of THC also needs attention, since it is a service supplied at the port.
In Sailix
How Sailix handles it
Sailix has no dedicated THC module. THC is set up as a tariff item, with its tax treatment coming from a tax service group, and is billed as a charge line on export and import invoices or recorded as a cost in a purchase journal. A Freight Collect Instruction can note charges, including THC, that the line wants collected at destination.
- Tariff managementMaintain tariff items, group them for tax, and keep port storage slabs per line and port and buy and sell rates per forwarding location.
- Export invoicingBill export charges against the booking and B/L, split prepaid from collect, and hold B/L issue until the invoice is receipted or approved.
- Import invoicingRaise import invoices from the B/L with charges and tax prefilled, and keep detention and M&R invoices alongside.
Related terms
- Liner agencyA liner agency is a company that represents a shipping line in a port or country. It handles bookings, documents, collections and equipment on the line's behalf.
- Arrival noticeAn arrival notice is a document telling the consignee and notify party that a shipment is due. The carrier or its agent sends it, with the charges payable for release.
- TEUA TEU is a twenty-foot equivalent unit, the standard measure of container volume. One 20-foot container counts as one TEU and a 40-foot as two.
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