The logistics sector is the lifeblood of international trade and is filled with many technical terms. One of these is “THC”. “What is THC?” questions are among the fundamental concepts that especially those new to logistics processes are curious about. By examining the THC concept in depth, we will explain its role in logistics and its impact on transportation processes in detail.
What is THC?
THC is an abbreviation for the English phrase "Terminal Handling Charges". Translated into Turkish as "Terminal Handling Fees", THC is an important cost item in the international trade and logistics sector. The fee covers operational procedures performed during the entry and exit of containers at the port. It refers to the fee charged for operational activities such as handling, transportation, loading, and unloading of containers when a shipment enters or leaves the port. In other words, it is the service fee incurred during the unloading of the cargo onto the ship and loading it from the ship at the port or terminal. Services include unloading the container from the ship to the terminal and vice versa. THC is not related to transportation itself but is an important item to cover the costs of port operations. As a significant part of the logistics chain, it frequently appears in international trade. It is one of the basic expenses that exporting and importing companies should consider when calculating their transportation costs.
The Role of THC in the Logistics Process
THC in logistics is a critical cost item in international transportation and maritime trade. The fee arising from the transfer, storage, and handling of shipments between ports and terminals is indispensable for the effective operation of the global supply chain. It is an important service fee paid for terminal operations. This fee covers activities such as unloading containers from ships, stacking, storage, and loading onto land vehicles. It should be remembered that the transportation process does not end with departure or arrival; the cost of proper and rapid handling of shipments is also involved. Especially in busy ports, THC paid for operational efficiency and time management is an essential part of logistics planning. THC comes into play at this stage and is among the fees demanded by logistics companies or carriers from their customers. Companies should optimize these costs and transparently pass them on to their customers to stay competitive.
The main roles and importance of THC in logistics are:
Handling Services
Handling Services cover the processes of transporting containers with cranes from the ship to the port or from the port to the ship. In modern ports, effective handling services enable time and cost savings, allowing containers to be transported quickly.
Storage
Storage involves the temporary storage and organization of shipments within the port area. The process is of great importance for the secure storage of cargo and quick access when needed.
Operational Services
Operational Services aim to increase process efficiency through the use of terminal equipment. Covering labor costs is an important factor in this process. Proper equipment and workforce management contribute to reducing costs and improving service quality.
Transportation Ease
Transportation ease supports the continuity of the logistics chain by increasing the efficiency of logistics processes, ensuring that shipments are transported on time and without damage. Effective transportation methods ensure the safe delivery of products. It supports the continuity of the logistics chain and provides a competitive advantage by ensuring shipments are delivered on time and undamaged.
THC fees may vary between ports and countries. They also differ depending on the type, size, and characteristics of the cargo. Therefore, accurate calculation of THC costs during logistics planning prevents surprises in expenses.
How Are THC Fees Determined?
THC fees are determined by port authorities and terminal operators and are generally shaped according to certain criteria. These fees, which are an important cost item in container transportation, can vary according to global standards and local market conditions. The size of the container, such as 20 feet or 40 feet, affects the fee, with larger containers typically incurring higher charges. Besides this basic factor, the type and characteristics of the cargo: Hazardous materials, weight, or volume differences influence the price. Handling containers with hazardous materials requires special equipment and trained personnel, which adds extra costs.
The terminal's service policy may increase the price in some ports due to high-tech handling procedures. Terminals using modern equipment and automation systems generally apply higher THC, but the quality of service and operational efficiency they offer also increase accordingly. Speed of operations and timing: Extra charges may be applied during busy periods or urgent procedures. Seasonal peaks, holiday periods, or priority handling requests may lead terminal operators to implement different pricing policies.
What Is the Difference Between THC and Freight?
THC and freight terms are often confused in logistics, but they are different:
Freight: Freight is defined as the fee paid to the carrier for transporting cargo from one place to another. The freight fee used in maritime, air, land, or rail transportation is an important cost item in international trade. Freight prices can be affected by factors such as fuel costs, seasonal demand, route congestion, and economic conditions.
You can access detailed information from our "What is Freight? How Is It Calculated?" article!
THC: Terminal Handling Charges (THC), which are additional fees requested for processing and storing shipments at the terminal, refer to extra costs charged by sea terminals for loading and storage operations. THC covers expenses related to loading/unloading containers, document processing, and temporary storage at port facilities. It varies depending on the size, type of the container, and local port regulations and can significantly impact the total transportation costs in international trade operations.
Is THC Included in the Freight?
THC is not included in the freight fee and is billed separately. The fee is paid for handling the container at the port and may vary according to the transportation agreement. In international maritime transportation, customers should consider that THC fees need to be calculated separately when evaluating freight offers. In some special cases, even if the offer is "all-in", it is important to check whether THC is included in the scope or not.
Where Can You Find Information About THC Fees?
THC fees can be directly inquired from the relevant port or terminal operators. Additionally, experienced logistics companies in international transportation can provide updated price information. Exporters and importers can also obtain information about THC fees from trade chambers.
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