Terminal Handling Charges - A bone of contention
Is THC being used as a revenue earner or a cost recoverer?
For a better understanding of the introduction and application of the intricate THC matter, this special report opens with an elaboration on tariff structures and the role of surcharges in general.
Briefly discussing the current THC turmoil in the Far East and Israel, it then describes the CENSA formula, detailing the 17 terminal cost elements agreed upon between parties.
There is an extensive analysis of THC differences in four European main ports and efforts are being made to explain the different underlying calculation bases.
After brief references to competition law and Incoterms in relation with THC, the report looks into alternatives, considers anomalies and concludes with a suggestion for a modus vivendi.
The Annexes, amongst others, contain:
- Terminal Handling Charges in more than 200 ports worldwide
- Port handled TEU statistics for those ports
- Conferences, other groupings and their membership
- Rates of exchange of all seaboard countries worldwide
First published in 2003, THC levies in ports worldwide as well as important relevant developments have been updated until 2008. In that year, the Liner Conference system became prohibited in the European Union and Conference-set THC replaced by carriers' individually calculated levies.
Yet, Gate-In/Gate-Out (GI/GO) freight rates (i.e. including THC) have not (yet) become the norm, as many had expected. Therewith, the contents of this report discussing and explaining the origin, background and basics of the THC phenomenon continues to be of interest for those not familiair with it.
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