What are charge handling charges? Compare handling charge with THC charge

In transactions of international trade operations. The handling charge is a charge present in most transactions. So, what is charge handling charge? What are the differences between charge handling charge and THC charge? Please refer to this article immediately to get the most accurate answer!

What is the charge handling charge?

The handling charge is an important fee in the field of logistics established by shipping lines or forwarders to collect shipper or consignee fee to offset the cost of taking care of your shipment. For example, transaction fees between shipping agents/shipping agents, manifest costs and D / O costs, telephone costs, depreciation costs, etc.

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Because of any shipment no matter how simple it is. The shipping line and forwarder also take time to handle and handle the shipment.

Currently, shipping lines usually do not charge handling fees (instead of making master bill). However, for some types of goods specified through the forwarder, the forwarder is required to charge handling charges and to be calculated, shipping charges. Because in fact, the forwarder specified goods do not receive commissions from the freight.

Structure of charge handling charge

Nowadays, handling charge is divided into 2 charges including:

Terminal Handling Charge (THC): port handling charges per container. This cost is calculated according to the shipping container's number of containers. For the purpose of paying for cargo handling at the port. Meanwhile, the shipowners will have to pay a loading and unloading fee to the port to compensate for this charge. Shipowners recover from the client the THC surcharge.

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Handling fee (handling fee): processing fee. This fee is used to pay for and maintain a network of agents worldwide. In order to maintain the linkage network between transport units in the world into a common information network, helping the exchange and receipt of the goods of goods take place quickly and smoothly. The transport unit to pay such as phone charges, documents, papers, ... and other costs. In order to cover these costs, shipping companies are required to collect handling charges from customer charges.

Compare handling charge with THC charge

The THC (port loading and unloading fee) is the fee collected per container to cover the costs of cargo handling activities at the port. Specifically as the costs:

Charges for loading and unloading containers from aboard.
Shipping fees from container wharf to container yard.
Forklift truck loading and unloading container.
Port labor fee.
Parking charges.
Port management fee.

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The THC fee is applied at both ports of entry and exit. The consignee incurs THC fees at the port of loading for terms (EXW, FCR, FAS). The shipper is subject to the port of discharge for delivery conditions (DAT, DDP).

As analyzed above, the THC charge is an additional charge at the port, which is related to the handling of import and export goods. And handling charge is the fee collected by forwarders to serve the process related to freight forwarding services.

Above is all the information about charge handling charge that LEC Group shares. If you need assistance, please contact us today!

LEC Joint Stock Company

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