A Terminal Handling Charge (THC) is the fee an ocean terminal collects for moving your container between the vessel and the terminal yard. It covers the crane lift, the yard shuffle, gate processing, and the terminal’s share of equipment and labor cost. THC is billed separately from ocean freight, applies at both origin and destination, and is one of the largest fixed line items on an import invoice after the freight itself.
What THC actually pays for
The charge bundles several distinct terminal operations into one number:
- Vessel lift — the ship-to-shore crane move on and off the vessel.
- Yard handling — transferring the box to a stack, and repositioning it as the stack is worked.
- Gate processing — the in-gate and out-gate transaction, including documentation and inspection at the gate.
- Terminal infrastructure — amortized cost of cranes, pavement, reefer racks, and labor agreements.
What THC does not cover is equally important: it excludes demurrage and detention, chassis usage, exam fees, and any special handling. Those arrive as separate accessorial charges.
Origin THC vs destination THC
THC is assessed twice on a typical port-to-port move — once at the load port and once at the discharge port. Who pays each side is set by the Incoterm on the sale.
Under FOB
The seller absorbs origin THC; the buyer pays destination THC plus ocean freight. This is the most common structure for U.S. importers buying from Asia and Latin America.
Under CIF or CFR
The seller pays origin THC and ocean freight, but destination THC almost always still lands on the buyer at the discharge port. Importers are frequently surprised by this — “the freight is prepaid” does not mean the terminal bill is prepaid.
Under DDP
The seller is responsible for charges through delivery, including both THCs. See our breakdown of DDP vs DDU under Incoterms 2020.
How much is THC at PortMiami and Port Everglades?
THC is published by the terminal operator and the carrier, varies by container size and type, and changes with tariff filings — so any figure quoted in an article goes stale quickly. The reliable method is to pull the current published tariff for the specific terminal and steamship line on your booking, rather than relying on last year’s number. Reefer and out-of-gauge boxes carry higher THC than standard dry equipment, and 40-foot units cost more than 20-foot units without being double.
Two practical notes for South Florida importers. First, PortMiami and Port Everglades operate under different terminal operators with different tariffs, so a routing change between the two ports changes your THC. Our PortMiami vs Port Everglades guide covers the operational differences. Second, LCL shipments see THC recovered through the CFS charge instead, since the terminal bills the consolidator for the full container.
Can you negotiate THC?
Mostly no, and this trips up new importers. THC is a published terminal tariff, not a carrier margin item, so there is very little room to move it directly. What you can control is the total landed cost around it:
- Consolidate. Fewer, fuller containers means fewer THC events. If you are shipping partial loads, a consolidation program reduces per-unit terminal cost.
- Set Incoterms deliberately. Agreeing to FOB versus CIF changes which THC you absorb. Price the difference before signing, not after.
- Audit the invoice. THC should match the published tariff for that terminal, size, and equipment type. Mismatches happen.
- Watch the routing. A cheaper ocean rate into a terminal with higher THC and worse turn times is often a net loss once drayage is included.
THC and your drayage cost
THC and drayage are separate bills, but they interact. Terminals with congested yards produce longer truck turns, and longer turns raise drayage cost even when THC is unchanged. Carriers with owned chassis and their own appointment discipline recover more of that time. Go Freight is an asset-based Miami 3PL founded in 2004, running 100+ owned trucks and an owned chassis pool from a 104,000 sq ft bonded warehouse at 6901 NW 26 Ave — which is how we keep the controllable half of terminal cost predictable.
Frequently asked questions
Is THC included in my ocean freight rate?
Usually not. Most ocean quotes are presented as freight-only, with THC, documentation, and security fees added separately. Always ask whether a quoted rate is all-in or freight-only before comparing two carriers.
Do I pay THC on an LCL shipment?
Not as a separate THC line. On LCL the consolidator pays the terminal for the full container and recovers it through the CFS and handling charges on your invoice. The cost is still there, just relabeled.
Is THC the same as wharfage?
No. Wharfage is a port authority fee assessed on cargo crossing the dock, while THC is the terminal operator’s charge for physically handling the container. Both can appear on the same shipment. See what wharfage is at a seaport.
Get a clear, all-in Miami drayage quote
We quote terminal-to-door with the accessorials spelled out, not buried. Request a quote or call (786) 445-0150.