Origin THC vs destination THC: origin THC is charged at the loading terminal and usually sits with the seller; destination THC is charged at the discharge terminal and usually sits with the buyer, unless the Incoterms or freight contract say otherwise.
What is a Terminal Handling Charge (THC)?
A terminal handling charge (THC) recovers the cost of handling a container at the port: receiving it at the gate, moving and stacking it in the container yard, and lifting it onto or off the vessel. Carriers publish THC in their tariffs per container and by container type (dry, reefer, special equipment), as an origin charge and a destination charge. Names vary: OTHC and DTHC, or Maersk's "Terminal Handling Service - Origin (OHC)" and "Destination (DHC)".
Origin versus destination THC
| Charge | Where | Who usually pays |
|---|---|---|
| Origin THC | Loading port, for example Nhava Sheva or Shanghai | The seller on FOB, CFR and CIF; the buyer on EXW |
| Destination THC | Discharge port, for example Newark or Los Angeles | The buyer, unless the seller's freight contract already includes it |
Under FOB the seller delivers the goods on board, so loading costs, including origin THC, are the seller's. Under CIF and CFR the seller also pays the ocean freight, but destination handling is the buyer's unless the seller's contract of carriage covers it. See Incoterms for the full split.
The rules behind it
In US trades, THC is a tariff charge: common carriers, including NVOCCs, must publish all their rates, charges and rules in tariffs open to public inspection (46 CFR 520.3), and an increase cannot take effect until 30 calendar days after it is published (46 CFR 520.8). Maersk's destination THC for cargo from the world to the United States, for example, was republished with new levels effective March 1, 2025.
THC versus other port charges
- THC vs demurrage: THC is charged once per container move; demurrage is charged per day after free time
- THC vs CFS charges: on LCL, the CFS bills for unpacking and handling loose cargo, on top of or in place of container THC
- Port fees: at Los Angeles and Long Beach, the PierPASS Traffic Mitigation Fee and the Clean Truck Fund rate are separate from THC
Common mistakes
- Comparing an "all-in" rate that includes destination THC with one that does not
- Paying destination THC twice: check whether a CIF or CFR seller's freight already covered it
- Forgetting origin THC on an EXW purchase, where every origin charge is the buyer's
Our FCL quotes list origin and destination terminal handling on separate lines, so two quotes can be compared on the same basis.
Related terms
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