Terminal Handling Charge Shippers’ Perspective

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What is THC?• THC, according to the Glossary of Shipping Terms, is acharge for handling services performed at the terminal. Ingeneral, it means the movement of containers within theterminal and the use of its facilities.• Based on the Shippers-Liners dialogue at the local level,IADA proposes that their THC comprised mainly ofstevedoring, empty repositioning and container-relatedservices; while TSA defined the limits of their THC“starting upon discharge of empty container from vesselthrough container receiving at the terminal gate until it wasloaded onto the vessel and vice-versa.”6
Liner Conference/Agreement• Sea freight for containerizedshipment is under “free-inand-out”(FIO) term, whichmeans that costs of loadingand unloading are for theaccount of theshipper/consignee.Note: Based on IADA’spresentation during PSB-IADAmeeting in March 2004.<strong>Shippers’</strong> <strong>Perspective</strong>• Sea freight for containerizedshipment is under “Linerterms” under which loadingand unloading costs are borneby the carrier and, thereforeincorporated in the freight rate.• In contrast with liner’sperspective, “FIO” term isgenerally used in charteringarrangement to cover a port-toportfreight or sea transportcost, and this chartering term isnot applicable in linercontainerized shipping.7
Page 1 and 2: PhilippineShippers’BureauTerminal
Page 3 and 4: Background• In late 1991, Asia No
Page 5: Contradictory Views on THCbetween L
Page 9 and 10: Liner Conference/Rate Agreement•
Page 11 and 12: I. Basic Cargo Handling ServicesB.
Page 13 and 14: II. Comparison between THC & Steved
Page 15 and 16: Liner Conference/Rate Agreement•
Page 17 and 18: Table II-A. Current Level of THC in
Page 19 and 20: Table III-A. Estimated Cost of THCt
Page 21 and 22: Table III-C. Estimated cost of THCt
Page 23 and 24: Shippers’ Position andAction Plan
Page 25 and 26: Discussion Points/Shippers’ Conce
Page 27: ENDThank you!27

Terminal Handling Charge Shippers’ Perspective

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