I'm trying to understand the financial responsibilities in a Free On Board (FOB) shipment arrangement. Specifically, I want to know who bears the cost of terminal handling charges in such a scenario.
6 answers
MysticStorm
Sat Oct 12 2024
THC, or Terminal Handling Charge, is a fee paid for the handling of goods at the port of departure or arrival. The payment terms for THC are usually specified in the export contract between the buyer and seller. Depending on the agreed terms of delivery, the responsibility for paying THC may vary.
CryptoTrader
Sat Oct 12 2024
In addition to THC, there are various other fees and charges associated with international shipping, such as customs clearance fees, insurance costs, and freight charges. It's essential for buyers and sellers to understand all the costs involved in the shipping process to avoid any unexpected expenses.
SeoulSerenity
Sat Oct 12 2024
In cases where the terms of delivery are FOB (Free On Board), CFR (Cost and Freight), or CIF (Cost, Insurance, and Freight), the shipper is responsible for paying the THC at the load port. This means that the shipper must cover the costs associated with loading the goods onto the vessel and any handling fees at the port of departure.
Federica
Sat Oct 12 2024
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Caterina
Sat Oct 12 2024
On the other hand, if the terms of delivery are CPT (Carriage Paid To), DAP (Delivered At Place), DDU (Delivered Duty Unpaid), or DDP (Delivered Duty Paid), the buyer is responsible for paying the THC at the destination port. This includes any fees related to unloading the goods from the vessel and handling them at the port of arrival.