THC (Terminal Handling Charge)
A fee charged by carriers for handling containers at the port terminal, applied separately at the origin and destination ports.
TL;DR: THC covers the cost of moving containers within a terminal and loading or unloading them from the ship. There is an origin THC and a destination THC, and they are paid by different parties depending on the Incoterm.
Terminal work includes receiving containers, stacking them in the yard, and lifting them on or off the vessel. Carriers pass this cost on as THC, usually quoted per container for FCL. For LCL, similar handling costs appear in CFS charges. THC amounts vary by port and change over time, so ask for current figures in each quote.
Origin THC is charged at the port of loading, for example Nansha or Yantian. Destination THC is charged at the port of discharge. Under FOB, the seller normally pays origin THC as part of delivering goods onboard, and the buyer pays destination THC. Under CIF or CFR, the seller pays freight and origin charges, while destination THC is usually for the buyer, unless the sales contract says otherwise. Under EXW, the buyer pays both, and under DDP the seller pays both.
Destination THC often surprises buyers on CIF shipments, since it appears on the arrival invoice with other local fees. Ask the seller or forwarder to state clearly which charges are included and which will be billed at destination.
THC is one of several local charges, along with documentation fees and customs fees. See Incoterms, FOB and CIF.