Terminal Handling Charges (THC) also called Container Service Charges (CSC) is the summary of money paid for use of terminal equipment at the ports. Such services usually involve the use of plant, lifting equipment, and other machinery in loading or offloading of the container at the port. Hence, there are two terminal services used by shipping lines at the shipment of a container. Firstly, at the port of shipment or origin, there will be some form of unloading of container from truck, etc. Secondly, at the port of destination there will again be some form of unloading of the container, stacking and movement from the stacked area to the crane.
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SHIPPING COMPANY LOCAL CHARGES
Besides the freight cost paid for transport of item from origin/supply to destination, shipping companies make some charges at the destination locality. These charges are generally the same, but with some variations.
Sometimes it is difficult to explain to first time importers that they have another payment to make after paying freight cost. I have had to deal with a client who found it incomprehensible that shipping companies would ask him to make additional local payment. Consequently, I recommend that the Clearing Agent be carried along from the first stage of import to the very last stage. Vagmon Integrated Services is designed to assist you in the Nigerian logistics and supply chain space. Contact us today @ +2349075526276
TERMINAL HANDLING CHARGES AND SHIPPING COMPANY CHARGES: EXAMPLE
The following data will show typical terminal handling charges in Nigeria.
Shipment Detail:
- Shipping company: Grimaldi Agency
- Container size: 20 feet
- Origin country: USA
- Supply country: USA
- Destination: Nigeria
- Total cost and freight: NGN69169.00
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Terminal Handling Charges:
- Free packing period: 3 days
- Packing rent period 1: 5 days (NGN4,500.00)
- Packing rent period 2: 1 (NGN4,400.00)
- Terminal Handling Charges: NGN80,000.00
- Terminal Delivery Charge: NGN5,500.00
- Custom Examination: NGN27,000.00
- B/L Document Terminal: NGN5,500.00
Shipping Company Charges:
- Free demurrage days: 5
- Demurrage for 9 days: NGN20,000.00
- Shipping company charge: NGN31,000.00
- Container cleaning/maintenance: NGN1,500.00
- Nigerian Port recovery charge: NGN37,500.00
Total Charge:
- Total charge (shipping company charges + terminal charges): NGN216,900.00
- 5% VAT: NGN1048.00
- Stamp duty: NGN100.00
- Local refundable deposit: NGN100,000.00
- Provisional Demurrage: NGN117,500.00
- Total payment: NGN445,345.00
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CONCLUSION:
Terminal Handling Charges and Shipping Company Local Charges are part of the importation costs that must be borne by the importer. This article has shown an example of handling charges for a 20 feet container. Finally, in my next article, I will write about a 40 feet container.