IHC Vs. THC – How to differentiate between IHC and THC in import and export?

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Collection by Ashutosh Joshi 

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What is IHC? How does THC work? What is the difference between THC and IHC in export and import? Is IHC applicable for port to port shipment?

Difference between IHC and THC in export and import.

IHC means Inland Haulage charges and THC Terminal Handling Charges.   The transportation cost to move goods from inland container freight stations to sea port of loading or vice versa is called Inland Haulage Charges IHC.  Terminal handling charges is the charges payable to port terminals against handling equipments.

The term IHC - Inland Haulage Charges means the transportation charges from inland container freight station to sea port of loading or vice versa.  If   Cargo freight station is away from sea port of loading, the shipper completes customs formalities at such container freight station and arranges to move cargo to port of loading either by rail or road.  Normally, most of cargo in such locations is moved by rail.  If moved by rail, the  charges of moving goods from such location to port of loading or movement charges from port to inland freight station is known as Inland Haulage Charges.    Inland haulage charges vary CFS to CFS, as the distance from CFS to port of loading varies one to another.  Inland Haulage Charges – IHC – is collected by shipping line when releasing Bill of lading for export shipments, and when issuing Delivery Order in case of import. 

Terminal Handling Charges (THC) is the charges collected by terminal authorities at each port against handling equipments and maintenance.  THC varies port to port of each country, as the cost of handling at each port differs one to another port, depends up on the total cost of port terminal handling at each location.   Normally, Terminal handling charges (THC) for exports is collected from shipper by shipping lines while releasing Bill of Lading after completion of export customs clearance procedures.  In the case of shipments moved from inland destinations other than sea port, the said THC is collected at same location while releasing bill of lading by carrier.   The import terminal handling charges is collected by shipping carriers at the time of issuing delivery order to consignee to take delivery of goods.  Also read - Is THC same in all ports?