Freight Surcharge Decoder — THC vs DTHC

THC and DTHC are among the most common — and most frequently disputed — freight surcharges on international shipping quotes. Every container shipment incurs handling costs at both the origin port (loading) and the destination port (unloading). Understanding what you're paying for — and where you have room to negotiate — can save hundreds per container.

What THC Covers at Origin

At the origin port, the terminal handles your container from the moment it's handed over by the trucking company until it's loaded onto the vessel. Services included:

• Crane operations — lifting containers from truck to dock and onto the vessel
• Yard management — storing and organizing containers in the terminal
• Documentation processing — gate-in registration, vessel loading plans
• Security and scanning — container inspection and access control

THC Rate Factors

Factor	Impact on THC
Port congestion level	Higher congestion → higher THC
Terminal operator	Different terminals charge different rates
Container type	Reefer containers typically +$30–$50/TEU
Seasonal demand	Peak season can push THC 10–20% higher

What DTHC Covers at Destination

At the destination port, the terminal performs the reverse process — unloading the container, storing it, and releasing it to the consignee or trucking company. DTHC typically includes:

• Discharge operations — unloading containers from the vessel
• Port storage — temporary storage while customs clearance is completed
• Gate-out processing — releasing containers to the nominated trucking company
• Documentation and data fees — EDI messages, release orders

Typical THC and DTHC Ranges

Port Region	THC (Origin)	DTHC (Destination)
China (Yantian, Ningbo, Shanghai)	$80 – $150 / 20ft	$150 – $300 / 20ft
US West Coast (LA/Long Beach)	—	$180 – $350 / 20ft
US East Coast (Savannah, Charleston)	—	$200 – $400 / 20ft
North Europe (Hamburg, Rotterdam)	$100 – $200 / 20ft	$150 – $280 / 20ft

Why DTHC Is More Contested

DTHC is often the bigger source of disputes because:

• Consignee pays DTHC — in FOB/CFR terms, the buyer bears DTHC, creating cost surprises
• Destination port operators have market power — consolidation reduces competitive pressure
• Demurrage and detention overlap — delays in collecting containers compound DTHC with storage charges
• Rate opacity — DTHC rates vary by port, terminal, and carrier, making comparison difficult

DTHC Disputes: Common Scenarios

• Importer not aware DTHC is a separate charge (assumed included in freight)
• Customs hold extends free time, triggering demurrage on top of DTHC
• DTHC charged by carrier vs. terminal operator — double billing confusion

Negotiation Strategies for THC and DTHC

• Pre-negotiate DTHC caps in your purchase contract — specify maximum acceptable DTHC levels
• Use DTHC-prepaid shipments — shift to freight prepaid to gain visibility and control
• Compare terminal operators — at ports with multiple terminals (e.g., Shanghai), rates differ
• Bundle THC with ocean freight — all-in rates often result in lower total cost than separate surcharges