Shipping rates. Local costs.

THC (Terminal Handling Charge)

The THC, also known as THC/L, THC/D, port handling, etc. refers to the handling charges both at the port of loading and the port of discharge.

• In the case of FCL, each shipping company sets its own rate which will vary depending on the geographical area and type of container involved.
• In the case of LCL, handling is calculated based on W/V. Normally a different amount is quoted for each unit of measurement, for example, 22 EUR/t or 11 EUR/m3. Whichever is the greater of the two is the amount charged.

ISPS (International Security Port Surcharge)

The ISPS is a surcharge applied by the shipping companies to offset the additional costs of security measures.

• In the case of FCL, it may be quoted per container, per TEU or per B/L.
• In the case of LCL, it is normally quoted per B/L.

B/L (Bill of Lading)

This cost is for issuing the Bill of Lading and it is applied per document, i.e. per B/L issued.

Other costs

Quotes may contain other items depending on the shipping company being used for the shipment, for example, logistics management, equipment cleaning, on-wheels (a fee for handing over the transportation of the container to the freight forwarder), container inspection, etc. These will be charged by container or by B/L depending on the type of cost involved.

T3

The T3 is a fee charged for the movement of goods through the quays, the use of berthing facilities, handling areas, access roads and other port facilities. The fee is charged for imports, exports and the transit of goods.

In the case of FCL, there are two ways to apply T3 (at the discretion of the consignee / shipping company):

• The simplified charge system: a fixed amount per container..
• The goods group system: in this case the T3 is the sum of the following amounts:
  • An amount per tonne, according to the relevant tariff heading group of the goods (there are 5 groups).
  • An amount according to the container type.

There is no single approach among shipping companies, they may use either of the two systems interchangeably for each shipment. In addition, the goods group system varies according to the port authority which means that different T3 amounts would be charged for the same goods if they were imported into Valencia or Barcelona.

In the case of LCL, each consolidator sets a price per tonne at their own discretion depending on whether the goods are being imported or exported, whether they are using the simplified or the goods group system and depending on the port. Generally, charges can range from 3.05 EUR/t to 4.14 EUR/t.

P.L.I. (Public Liability Insurance)

This charge arises from the freight forwarder’s public liability insurance which is compulsory. It is quoted per B/L.

Collection or delivery (Haulage)

In the case of FCL, prices are quoted per container and they may be expressed in terms of kilometres, so much per “radius” (different circular distance bands between the port and the loading and unloading points) or a lump sum. We prefer a lump sum and we think it is clearer for our clients.

In the case of LCL, prices are usually quoted depending on chargeable weight as we explained in a previous post on the subject. We will look at two examples here anyway:

1. The shipment of one 1,800 Kg, 1.8 m3 pallet. 1.8 m3 x 333 Kg/m3 = 599.4 Kg which is less than the actual gross weight of 1,800 Kg. Therefore, the chargeable weight will be 1,800 Kg.
2. The shipment of one 400 Kg, 1.8 m3 pallet. 1.8 m3 x 333 Kg/m3 = 599.4 Kg which is more than the actual gross weight of 400 Kg. Therefore, the chargeable weight will be 599.4 Kg.

IMO goods and OWS for land transport

On average a 25% surcharge is added to the haulage price for dangerous or overweight goods for both FCL and LCL freight over and above the standard price due to the increased risk involved.

Customs clearance

The charge for customs clearance may be quoted in various different ways: per commercial invoice, per container or per B/L depending on the complexity of the shipment i.e. the type of goods, whether they are for export or import, the number of tariff headings to be declared, whether certain services are required (customs inspections, procedures for medical or pharmaceutical consignments, goods have to be scanned, etc.).

Forwarders often group all or part of the origin and destination costs into a flat fee per container to make it easier for clients to calculate exactly how much it will cost to send their consignment.