What is Terminal Handling Charges: Meaning and Calculation Guide
Terminal Handling Charges (THCs) are fees collected by terminal operators for services provided at both the loading and destination ports. These charges are essential in international shipping and are applied to ocean freight shipments. In this guide, we will break down what these charges mean, what they include, and how to calculate them.

What Are Terminal Handling Charges?
Terminal Handling Charges (THC) refer to the fees imposed by terminal operators for handling cargo at ports, terminals, or Container Freight Stations (CFS). These fees are also known as Container Service Charges and are applicable only to ocean freight. THCs cover the costs associated with the movement of containers within the terminal, both at the origin and destination ports.
Typically, the responsibility for paying THCs lies with either the shipper or the buyer, depending on the shipping terms negotiated under Incoterms. Terminal operators use these fees to cover a range of expenses, including terminal maintenance, security, surcharges, and employee compensation.
What Do THC Charges Include?
The final Terminal Handling Charges vary by location and terminal operator, but they generally cover the following services:
- Handling: This includes the loading and unloading of cargo containers from ships and moving them within the terminal using specialized equipment such as cranes and forklifts.
- Documentation: Some terminal operators may include the preparation and processing of documentation related to container movements in their THC charges.
- Storage: THCs also account for storage fees when containers are held at the terminal for an extended period, either before loading onto a vessel or after discharge.
It is essential to review the THC fee structure carefully to understand the services provided. At Super International Shipping, we offer a clear breakdown of THC costs, ensuring transparency and preventing unexpected hidden fees.
What Are the Types of THC Charges and Who Pays Them?
Terminal Handling Charges are unavoidable costs that apply to every shipment, regardless of the payer. These charges are applied at three points: at the origin port, destination port, and any transshipment port.
- Origin Terminal Handling Charges (OTHC): Fees paid for port services before the vessel departs from the origin port.
- Destination Terminal Handling Charges (DTHC): Fees collected upon the cargo’s arrival at the destination port.
The responsibility for paying these charges depends on the shipping terms. For instance, under EXW (Ex Works) terms, the buyer is responsible for paying the THC, while under FOB (Free on Board) terms, the shipper typically covers these fees.
In cases of transshipment, the freight carrier bears the cost of any THC at the transshipment port, as these charges are included in the overall freight cost.
Additional THC Charges Based on Cargo Type:
Some types of cargo and equipment attract additional THC charges:
- Out-of-gauge (OOG) cargo: Oversized cargo that requires specialized handling equipment, such as slings and extension spreaders.
- Hazardous materials: These require special storage within a designated area for safe handling.
- Reefer cargo: Refrigerated containers that need to be connected to an electrical source to maintain temperature during storage.
How to Calculate Terminal Handling Charges
THC is typically determined based on the cargo type, size, weight, and container specifications. The calculation methods vary depending on whether you are shipping Full Container Load (FCL) or Less-than-Container Load (LCL).
THC Calculation for FCL Shipping:
For FCL (Full Container Load) shipping, THCs are charged per container. Here’s an example of THC costs for shipments from China to the Germany:
- A 20 FT container incurs THC charges between USD125 to USD140 per 20 foot container.
- A 40 FT container incurs THC charges around USD185 to USD200 per 40 Foot container container.
THC Calculation for LCL Shipping:
In the case of LCL (Less-than-Container Load) shipments, THCs are not directly applied. Instead, CFS (Container Freight Station) charges are calculated based on the cargo volume (CBM) or weight/measurement (W/M). The more volume you ship, the higher the fees you will incur, as these charges are calculated per cubic meter. For deeper understanding read this guide on What is LCL chargesÂ
It’s important to note that terminal ports adjust their THC rates annually, and costs can vary between sea routes. At Super International Shipping, we provide a detailed breakdown of cargo handling costs at different terminals, helping you optimize shipping costs and reduce transit times.
What Is the Difference Between Wharfage and THC?
Wharfage refers to the fee for using wharf or dock facilities for loading or unloading cargo. This fee is typically billed separately from other port charges.
In contrast, THC covers a broader range of services associated with cargo handling within the terminal facility. While wharfage is a specific fee related to dock use, THC includes handling, documentation, and storage services. These charges are non-negotiable and vary between terminals, depending on the services provided.
Super International Shipping: Transparent THC Pricing
At Super International Shipping, we understand how crucial it is to have a transparent and predictable cost structure for your international shipments. Our team provides full visibility into Terminal Handling Charges and other fees, ensuring you have all the information needed to make cost-effective decisions. Contact us today to learn how we can help reduce your shipping costs and optimize your supply chain logistics.