Costs and charges
THC (terminal handling charge)
The charge for handling containers at the port terminal, billed at origin to the shipper and at destination to the consignee.
In four languages
Terminal handling charges cover moving the container inside the terminal: receiving it, stacking it and loading it on the vessel at origin, or discharging it and handing it over at destination. Origin THC is billed to the shipper side and destination THC, often written DTHC, to the consignee, whatever the sales contract says. Under FOB the supplier normally pays origin THC as part of its FOB charges, while the buyer pays destination THC. Under CFR and CIF, destination THC is still for the buyer unless the seller's freight contract includes it. Example: a supplier sells CIF Jebel Ali with very low freight. When the container arrives, the Dubai importer receives a bill for destination THC, the D/O fee and documentation, because these were not included in the seller's freight.
Questions
Who pays THC under FOB?
The seller usually pays origin THC as part of the FOB charges, and the buyer pays destination THC.
Why did I pay THC when I bought CIF?
CIF covers freight to the destination port, but destination terminal charges are normally billed to the consignee unless the seller's carriage contract includes them.