Terminal handling charges (THC) and post terminal
charges are important components of the cost of transporting containerized
coffee. (THC cover the loading and discharge of containers, not charges for
inland transportation etc.) A freight quotation by itself may be attractive, but
the cost of bringing a container on board or getting it to the roasting plant
after discharge may well be higher than the norm and so offset any perceived
advantage. Receivers keep a close watch on terminal charges; these charges are
an important part of their evaluation of the competitiveness of individual
carriers.
Remember that unless stated otherwise in the
contract, under an FOB contract the shipper is liable for THC at origin and the
receiver is liable at destination. If a receiver negotiates a lower rate of
freight but at the same time the terminal handling costs at origin increase, the
outcome is that freight costs are being moved around the supply chain - in this
case to the detriment of the exporter. (Under an FCA contract the receiver is
liable for both sets of THC so this is not an
issue.)
Cost distribution
between sellers (S) and buyers (B)
|
FOB
|
CIF/CFR
|
FOT
|
Loading at sellers' premises
|
S
|
S
|
S
|
Inland transport (from the named place)
|
S
|
S
|
B
|
Trade documentation at origin
|
S
|
S
|
S
|
Customs clearance at origin
|
S
|
S
|
S
|
Export charges
|
S
|
S
|
S
|
Loading terminal handling charges (THC)
|
S
|
S
|
B
|
Ocean freight
|
B
|
S
|
B
|
Unloading terminal handling charges (THC)
|
B
|
B
|
B
|