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Glossary

Terminal Handling Charge (THC) meaning in ocean freight.

A terminal handling charge (THC) is a fee for handling a container at the port terminal, mainly lifting it between the vessel and the yard and moving it through the terminal. Origin THC applies at loading and destination THC at discharge.

Reviewed November 5, 2026

What THC covers on the freight invoice

Terminals charge carriers for moving containers on and off vessels and through the yard, and carriers recover that cost through THC. It may appear as a separate line on the freight invoice or sit inside an all-in rate. The amount varies by port, carrier, container size and type. Some carriers collect origin THC from the shipper and destination THC from the consignee, while others fold one or both into the ocean rate.

THC and the sales contract's Incoterm

The sales contract decides who bears THC, not the carrier's invoice. Under FOB, the seller usually covers costs until the goods are loaded, so origin terminal charges often fall on the seller and destination costs on the buyer. Under CFR or CIF, the seller pays the main freight, but destination THC is frequently left to the buyer unless the contract says otherwise. Because practice varies by lane and wording, name THC explicitly in the purchase order and the forwarder's quote.

Handling charges are not time charges

THC pays for handling, not for time. Once a container sits past free time, demurrage or storage can apply on top of it, and those come from different schedules. Other items that look similar, such as security fees, carrier documentation fees or wharfage at some ports, have their own bases. When comparing quotes, line up each charge by what it pays for, because a low ocean rate with a high THC can cost as much as the reverse.

Example

An importer's freight invoice for CMAU7029150 shows the ocean rate plus destination THC, which the carrier collects to cover discharge and yard handling at the U.S. terminal.

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Questions

What does Terminal Handling Charge (THC) mean?

A terminal handling charge (THC) is a fee for handling a container at the port terminal, mainly lifting it between the vessel and the yard and moving it through the terminal. Origin THC applies at loading and destination THC at discharge.

Is THC included in the ocean freight rate?

Sometimes. Some carriers and lanes quote all-in rates that include THC, while others list origin and destination THC separately. Ask the forwarder or carrier to show it explicitly so quotes can be compared fairly.

Does THC change during the year?

It can. Carriers revise THC when terminal costs change, and the revised figure applies from its effective date. Check the carrier's tariff or your contract for the current amount.

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