Introduction
In the intricate field of logistics, a shipping company also has to control expenses as they can define the company’s balance sheet or profit and loss statement considerably. Terminal Handling Charges (THC) is one of the most consideration of those costs. These charges involved in the delivery of products to the port as well as to freight terminals also form a core part for the cost involved in the carriage of freight. The evaluation of THC and its enhancement is crucial to any business that aims to increase its performance and avoid overpriced products.
This article seeks to discuss issues relating to terminal handling charges, its importance in the current supply chain environment and ways of managing them in order to enhance on the overall returns on investment and business success on the flow.
What Is THC (Terminal Handling Charges) In Shipping?

Terminal Handling Charges are charged by the shipping terminals for the storage and positioning of containers before they are loaded on a vessel. It is associated with the services that terminals perform in relation to shipping. These charges refer to various activities and local charges that are necessary in managing and handling of goods through the terminal facilities.
What is Included In THC?
Terminal handling charges or THC refer to the additional charges that are involved different ports and in different methods of the shipping line handling of goods through the port authority the port technicians and concerned terminal. Here’s a detailed breakdown of what is typically included in calculate terminal handling charges or THC:
Here’s a detailed breakdown of what is typically included in THC:
1. Loading and Unloading
Cranes and Lifting Equipment: The trans shipment and loading and offloading process that involves the employment of cranes and the forklifts and other mechanical equipment.

Labor for Handling: The employees needed to manage the machinery and personally transport the goods.

2. Storage
Temporary Storage: Charges levied on goods stored at the terminal awaiting shipment, or to be picked up by the receiver.
Extended Storage: Extra cost which the shipper has to pay if the cargo stays on port premises for more than the free days offered by vessel operator or the terminal.
3. Labor
Stevedores: Charges for the employees who handle the load of the shipment.
Terminal Staff: Expenses to be incurred on the human resources that are responsible for the coordination and supervision of the cargo business.
4. Equipment Usage
Container Handling Equipment: Fees to the usage of special vehicles for accommodating the containers like the straddle carriers, reach stackers & gantry cranes.
Conveyor Belts and Sorting Systems: Charges that are levied on applications that assist in the identification and movement of consignments within the terminal area.
5. Documentation and Administration
Customs Paperwork: Charges paid to customs offices and related instances for paperwork and formalities.
Bills of Lading: Bills of lading and other shipping documents preparation and issuance cost.
Administrative Fees: Charges related to the administration of all cargoes and their facilitation in the specific companies.
6. Security and Safety
Surveillance: Expenses on security cameras and on monitoring.
Security Personnel: Charges for guards and other personnel that are involved in the protection of the consignment.
Safety Regulations Compliance: Expenses for compliance to safety standards and requirements, or the inspection or certification of facilities and equipment as safe and for use.
7. Infrastructure Maintenance
Facility Upkeep: Maintenance of terminal facilities, equipment maintenance and their repair and redesigning.
Utilities: Other operational detects on the required utilities such as electricity and water expenses in order to run a terminal.
8. Additional Services
Cargo Inspection: Any fees charged for inspections such as Customs check, phyto-sanitary check, and the other quality check.
Weighing and Measuring: H. For it to be accepted for shipment these charges may relate to weighing and measuring of cargo.
Special Handling: Extra charges for shipment of goods which are considered dangerous, bulky or fall in other special categories that demand specific measures.
Why Is Terminal Handling Charge (THC) Important?
Terminal Handling Charges (THC) are crucial in the shipping and logistics systems all over the world. Here’s why THC is important:
1. Cost Management
Comprehensive Cost Coverage: Other costs that are covered under THC include the costs that go with the management safe storage of cargo in shipping terminals including loading and unloading costs, holding costs and documentation costs. Knowledge on these charges assist business in controlling and predicting their shipping costs.
Budgeting and Planning: Through inclusion of THC, companies would be in a position to create better budget estimates for the actual logistics and therefore will set an appropriate budget for terminal related activities.
2. Efficiency in Operations
Streamlined Processes: THC remunerate necessary service providers whose services help in the efficient handling of goods at the Ports hence avoiding time wastages.
Resource Allocation: Using THC, terminal operators can optimally allocate resources involvements like people and machinery to control the traffic of products.
3. Security and Safety
Enhanced Security Measures: A fraction of THC is used in hiring security services such as CCTV cameramen and security guards to ensure that consignment is monitored regularly not stolen or wrecked.
Compliance with Regulations: THC Specific Functions As a way of managing risks associated with port terminal activities especially in concourse areas of port terminals where cargo handling is carried out, THC has the mandate of seeing to it that all port terminals adhere to specific safety and security regulations.
4. Infrastructure Maintenance
Facility Upkeep: Some of the expenses that are catered for by THC include costs that enable terminal infrastructure to be well maintained and upgraded to meet the need of modern shipment.
Technological Upgrades: THC can also be applied to new technologies and advanced equipment, which can raise the efficiency and capacity of terminal operations.
5. Service Quality
Reliable Services: In order to cover the outstanding costs related terminal services which have checked and should check the quality of the terminal authorities’ services, THC makes sure that terminal operators can afford to have terminal authorities to meet these standards – and hence benefit shippers and consignees.
Customer Satisfaction: Effective and expedited management of cargo and actual deliveries with the help of THC increase clients’ satisfaction and improve cooperation.
6. Global Trade Facilitation
Smooth Cargo Flow: Terminal management and coordination is achieved by THC through ensuring that terminals provide a smooth passage of the goods in international trading.
Competitiveness: The competiveness of ports is enhanced by efficient and freight terminals and terminal and operations that are enhanced by support from THC that increases business and thus benefiting the region’s economy.
7. Transparency and Accountability
Clear Cost Structure: THC offers the user a detailed plan of the costs of terminal services, which, in turn, helps one know where their revenues are channeled in case they hire the company.
Accountability: There is always pressure on services that are offered by terminal operators which is expected due to the service delivery goals of the different terminals themselves.
Types Of THC (Terminal Handling Charges)
THC in the shipping industry and process logistics, can be affected by the nature of the cargo, which terminals or ports it has to pass through and or special specifications concerning the services it needs. Here are some common types of THC that may be applied in the shipping and logistics industry:
Here are some common types of THC that may be applied in the shipping and logistics industry:
1. Basic THC
Standard Handling: The costs of simple services offered by the terminal, in this case, involve loading and unloading the cargo from the ships as well as the movement of containers within the terminal.
2. Container THC (CTHC)
Container Handling: Term charges particularly on containers, which entails nomination of container service charges that the terminal will charge to handle containers that include but not limited to stacking, destuffing, and destuffing of containers.
3. LCL special charge; THC (Transporter’s House clan)
Consolidated Cargo: Fees for dealing shipping companies with integrated delivery or less volumes that do not reach a full container load level.
4. Reefer THC
Refrigerated Cargo: Extra expenses for stuffing/defrosting refers which are refrigerated containers that need specialized infrastructure and equipment to manage temperature-sensitive goods.
5. Out of Gauge THC
This highway code means Out of Gauge THC and stands for trucks that are not allowed to use normal highways due to their size.
Oversized Cargo: Charges for any extra weight or a dimension that is greater than the standard dimensions in the industry, therefore, it attracts special handling charges.
6. Hazardous THC
Dangerous Goods: Fees that will be required to transport items specific topics, call for special measures of security and conformity to rules governing transport of hazardous products.
7. Storage THC
Storage Fees: Fees levied for the storage of goods at the terminal after the free days allowed for storage which could be on per day or on per week basis.
8. Documentation THC
Administrative Costs: Such charges as of prepare charges, cost of documentation associated with cargo such as Bill of Lading, Customs documents, and any other formality that may be required in the shipping process.
9. Security THC
Security Measures: Tolls that are associated with terminal security such as surveillance systems, personnel and other security compliance measures.
10. Port Congestion THC
Congestion Charges: Surcharge that operators charge during festive crowded or periods during the year that witness a surge in cargo traffic due to ports in a bid to avert congestion.
11. Special Handling THC
Special Services: Fees that may be applicable when the carrier offers extraordinary services to the shippers like priority, special handling equipment use, handling during the night or on weekends or any special service avails by the shippers.
Terminal Handling Charges (THC) Calculation
THC comprises various factors that may differ with the terminal operator, the location of the terminal, and the type of goods being processed at freight terminal. While specific formulas may differ, here are the common components considered in THC calculation:
1. Basic Components
Weight or Measurement: In the previous equations, THC may be expressed by either the weight of the cargo that is hauled in metric tons or the volume of measurement, cubic meters.
Type of Cargo: The freight rates also vary depending on the type of cargo, say H-energy contains such as; Containerized, bulk, general cargo, etc. , may attract different THC depending on the handling conditions.
2. Additional Factors
Container Size: In case of the containerized cargo the THC may show distinction by taking into account the size of the container such as 20ft, 40ft or high cube.
Terminal Services: Parts of the processes that may require specific services like loading services, unloading services, stacking services, storage services, and other services like reefer, hazardous, oversized services.
Port or Terminal Specific Charges: The costs can even differ depending upon a port or terminal that a company is located in due to the difference in the operational cost, facility and service provision.
3. Calculation Methods
Flat Fee: Some terminals are paid a flat rate per container or per metric tonne unit which is a weight or volume measure of cargo.
Per Ton or Per Cubic Meter: THC can be calculated either by weight of the cargo expressed in metric tons or the actual space the cargo occupies in cubic meters.
Percentage of Freight Charges: Sometimes the ocean freight rate of the THC can be expressed as the percentage of the total freight charges made for the shipment.
Example Calculation:
- Step 1: Depending on the type of the shipment and container size choose the proper THC rate.
- Step 2: Thc rate is arrived at by multiplying any one of the following with the weight of the cargo in metric tonnes or volume in cubic m.
- Step 3: Place any extra fees that the facility charges for handling specific goods, storing, or any other service as necessary.
Considerations:
- Currency: THC rates are typically given in the currency used in the port or terminal.
- Contractual Agreements: THC can also be determined on the basis of negotiations between the shipper, carrier and terminal operator in relations to the rates and terms of contracts.
- Regulatory Requirements: Follow the rules on the obligatory payment of any fees or surcharges introduced by the regulations of a certain country concerning certain types of cargos or patterns of work.
Terminal Handling Charges at Top ports
THC costs differ according to the place, the terminal operator, the type of cargo traffic, of product or good to be shipped and the certain services that need to be employed. Here’s an overview of THC at some of the world’s busiest ports:
Here’s an overview of THC at some of the world’s busiest ports:
- Port of Shanghai, China

Overview: Actually this same port is one of big ports controlling millions of TEUs (twenty-feet equivalent unit) per year.
THC: Commonly computed in accordance with the size of the containers (twenty-foot equivalent units or TEUs, forty-foot, and so on), they embrace loading, unloading, and terminal services.
- Port of Singapore

Overview: A significant city located in Southeast Asia, that is considered as a key logistic center and an important player in supply chain networks.
THC: Charges that are based on container measurements and its mass and further differential charges for reefer containers, and other restricted goods and any other after care.
- Port of Rotterdam, Netherlands

Overview: It is among the biggest ports in the Europe that deals with various types of cargos and is very essential for the continent.
THC: Comprises costs of handling of containers, storage as well as other miscellaneous costs with the cost varying from one terminal to the same port, origin port, to other, destination port, and from service to service.
- Port Busan, South Korea

Overview: An important transshipment center in the Northeast Asia and as the link between East Asia and the international economy.
THC: Based on the dimensions of the container and its gross mass, with supplements for specific services and space.
- Port of Long Beach, USA

Overview: Ranked among one of the more active ports for commerce and trans shipment ports in the United States and home to a large amount of Imports and export of goods between the Pacific and the USA.
THC: Typically charged by different terminals by container size and the extent of the services that the terminal is offering such as handling, loading onboard storage etc.
- Jebel Ali Port, UAE

Overview: Based in Dubai which is among the prominent business and transport centers in the Middle East region.
THC: This consist of charges for handling of containers, storage and documentation for customs clearance; the charges depends on the operating environment and local infrastructure development.
- Port of Hamburg, Germany

Overview: A north European hub for processed, packaged and bulk cargo and a vital logistic business hub.
THC: Based on the type of container movements the cargo to be transported, destination port, the size of the container that is needed and some of the additional terminal services provided, which container carrier may have been contracted for, translated in local currency and local standards.
- USA – Port of Los Angeles

Overview: Together with Long Beach constitutes one of the largest ports in the Americas that are essential for the trans-Pacific trade.
THC: Fees that are set according to the handling of a certain number of containers, storage, as well as other administrative services with possible differences according to the container terminal, and the kind of cargo.
Conclusion
Thus, it is evident that Terminal Handling Charges (THC) are an essential aspect in current practices of international logistic, as they address such priorities as loading and unloading, storage, security, and administration costs incurred in ports and terminals nowadays as well as the financial stability at the global level. Thorough management of THC benefits corporate operations, especially supply chain economies, better accuracy, and compliance.
It helps the stakeholders to fairly allocate their resources and calculate the necessary amount forА Planning helps stakeholders to allocate their funds fairly and work with port terminal and operators to obtain beneficial conditions for cooperation, as well as plan the flow of cargoes based on the existing demand. It requires development of infrastructure, equipment and lasting resources through THC revenue in every accessible port and terminal that should enhance economic growth, build the efficiencies of logistics chains and therefore supporting global trade.
Finally, effective THC management is important factor for not only efficient functioning, not only protective of monetary losses, but also improves operational environments enabling the organizations to successfully manage variegated situations, distribute resources based on priorities and ultimately attain increased efficiency and increased profitability of logistic activities.