All about Wharfage Fee and THC

What Is the Wharfage Fee?

In shipping, a wharfage fee is a charge assessed by a dock owner for the use of his facility. In other words, wharfage refers to the cost of using a wharf. The fee is based on the size of the vessel using the dock and the length of time it stays. Wharfage fees are used to cover the costs of maintaining and repairing docks, as well as any other associated costs such as security.

What Is Included in a Wharfage Fee?

The wharfage fee is often the most confusing of all fees associated with shipping. To avoid confusion, it’s important to clarify exactly what a wharfage fee covers. Wharfage fees cover a number of expenses associated with the use of a dock. 

For example, the fee often covers any necessary repairs to the dock itself; in some cases, it also covers security and environmental monitoring. If you are shipping cargo from a private dock, wharfage fees may also cover the cost of any labor needed to load or unload the ship. Wharfage fees can vary significantly depending on the type of ship and cargo that’s being shipped.

How Is a Wharfage Fee Calculated?

A wharfage fee is calculated based on volume. This means the fee is based on the number of cubic meters a ship carries. Wharfage fees are also often charged per tonne or per kilogram, depending on the cargo being shipped. Who calculates wharfage fees? Wharfage fees are typically calculated by the port authority for a given region. The port authority will charge wharfage fees for all ships that dock in the ports under its jurisdiction.

Who Pays the Wharfage Fee?

The person that owns the ship will typically be charged wharfage fees. This means that the captain and crew of a ship are not typically responsible for paying wharfage fees. What is the history of wharfage fees?

When Is a Wharfage Fee Paid?

Wharfage fees are typically paid on a monthly basis, at the end of each month, or on a weekly basis depending on the port and the region.

Terminal Handling Charges (THC)

Terminal Handling Charges (THC) or Terminal Handling Fee (THF) is a charge that the port authority levies on the cargo owner for use of the port terminal. The THC may be charged by a private company or by a government entity, such as an airport authority or port authority.

Who Pays the THC?

THC is a charge that the cargo owner pays, which is typically included in the freight rate he or she pays to the ocean carrier. What is the purpose of THC?

What Is Included in the THC?

The THC includes the cost of using the port terminal facilities, such as the use of cranes and other equipment for loading and unloading the cargo. But what is not included in the THC? The THC does not include other charges that may be assessed by the port authority, such as an environmental fee or a cargo terminal development charge.

What Are Some of the Factors that Affect the THC?

The THC is based on the volume of cargo being handled. There are also other factors that can affect a THC, such as the size of the ship, whether it is an inbound or an outbound vessel, and whether or not it is containerized cargo. What is the size of a THC?

How Is the THC Calculated?

The THC is calculated by taking the port authority’s average expenses for handling a particular volume of cargo, then adding in the cost of land use and terminal development. These expenses are then multiplied by a factor that is specific to each port authority. The total is then divided by the volume of cargo handled.

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