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Even though shipment freight is prepaid in port of loading why the load port agent asking terminal handling charges in port of designation?

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Question added by Shaik Alavudeen Amanullah , Business Development & Operation Executive , Saadi Saad Al Harbi & Partners Company
Date Posted: 2017/04/15
Ali Abdelrahim Mohammed Marzoug
by Ali Abdelrahim Mohammed Marzoug , Coordinator/ Procurement Committee , World Vision International

it depend to the port load and  destination port and many of them using they are using third party to handle the items

Brownson P
by Brownson P , Freight Forwarding Co-ordinator , Globe Marine Services Co.

Normally Prepaid shipment need to collect Load port THC only. But some destionation like Chittagong, Bangladesh have some standard shipping instruction as per their trade, Destination THC should be collect from the POL.

This is depend up on POL and POD standard practice. 

Saadi Abdallah Mohammad Abdel-Rahim Abdel-Rahim
by Saadi Abdallah Mohammad Abdel-Rahim Abdel-Rahim , Senior Logistics Officer , Oxfam GB

It means that the terms of shipment does not include free on board (FOB) terms. As such the in land transporter/supplier forwarder got the terms Free Along Side Ship (FAS) or up to the shipping port.

MeiKoon Lee
by MeiKoon Lee , Assistant Manager , Promac Enterprises Sdn Bhd

Yes, the terminal handling charges is excluded from freight charges. It is part of the cost charged as fowarding cost. While freight charges are one that is billed by shipping line. 

You may get all those in one bill if you engage in DDP destination where the service provider will group all charges in one bill literally. 

Emmanuel Ozovehe
by Emmanuel Ozovehe , Head of Procurement and Operations , Alsaaz Int'l Ltd (Oil and Gas)

Terminal Handling Charges (THC) is the charges collected by terminal authorities at each Port (loading and Discharge Port) for handling equipment and their maintenance. 

The terminal handling charges differs from country to country. These charges are based on the cost of handling at each country’s ports and it differs from one Port to the other. It depends up on the total cost of handling at each port terminal and location.

Terminal Handling Charges for exports is collected from shipper by shipping lines while releasing bill of lading after completion of exports customs clearance procedures.

 

 

KHALID ALGHUNAIM
by KHALID ALGHUNAIM , Freelancer Logistics &Shipping Consultant , Freelancer

Dear Shaikh,

No you shouldn't be paying for terminal handling charges at port of designation & it should be paid by the Cargo receivers / Buyers . Except in the case where your Sales Inco Term is DAP (Delivery At Place) .

Roohul Mubahser
by Roohul Mubahser , GENERAL MANAGER LOGISTICS - COMMERCIAL , KESTRAL LOGISTICS

Prepaid means LTHC us paid however DTHC is still to be collect at deatination

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