Port Charges: THC, Demurrage, Detention and Storage — A Guide for Importers
In the overall cost of sea delivery, freight is only part of the total. Port and container charges often account for 15–35% of the final shipping cost — and if cargo collection is delayed, they can triple it. Four key charges every importer encounters when working with Ukrainian ports: THC (terminal handling charge), demurrage (container overstaying at the port beyond free time), detention (late return of an empty container) and storage (the terminal's charge for cargo occupying space on port territory). The first two are levied by the shipping line; storage is charged directly by the terminal — the mechanisms and tariffs differ.
Below are clear definitions, indicative tariffs for the ports of Chornomorsk and Odessa, and practical advice on managing these costs. Preparing for charges in advance and keeping them to a minimum is what an experienced port freight forwarder is for.
THC — Terminal Handling Charge: What It Is and Why It Exists
THC (Terminal Handling Charge) is a fee for handling a container within the sea terminal. It covers the movement of the container inside the port: discharge from the vessel, transfer to the storage area, storage during the free period, and handover to a road carrier or rail platform.
THC is typically included by the shipping line in an "all-in" freight rate or quoted as a separate line item. When comparing quotations from different lines, it is important to confirm whether THC is included in the stated rate — otherwise you are comparing figures that are not like-for-like.
Rates are indicative and subject to change. Always request current rates from the shipping line or freight forwarder before signing a contract.
Demurrage: The Charge for Container Overstay at the Port
Demurrage is a penalty charge levied by the shipping line on the consignee for exceeding the free time allowed for the container to remain in the port terminal. The free time period is counted from the moment the container is discharged onto the terminal until it exits through the port gates.
The length of the free time period and the daily rate for each additional day are set by the shipping line.
After 20–30 days of excess storage, most lines switch to an escalated progressive rate (1.5–3 times the starting rate). After 30–60 days, the line has the right to put the container up for a forced auction.
Causes of Delay and How to Avoid Them
The most common reasons for demurrage accumulating:
- Delayed customs release — particularly during price adjustments or physical inspections;
- Documents not ready — missing original bill of lading or discrepancy with the invoice;
- Difficulties with customs duty payment — especially on first-time shipments;
- No transport available — shortage of trucks during peak periods.
Starting document work early and having a reliable customs broker significantly reduce the risk of demurrage. Trans-Hope works on customs clearance and transport coordination in parallel — precisely to ensure cargo is collected within the free time period.
Detention: The Charge for Late Return of an Empty Container
Detention is a charge for exceeding the deadline for returning an empty container to the shipping line's depot after it has been collected from the port. The logic is the same as demurrage: the line has a finite fleet of containers, and an empty container sitting at a client's warehouse creates an equipment shortage.
Detention accrues from the moment the container exits the port gates. The free period is typically 7–14 days (sometimes up to 21 days if agreed with the line). After expiry — a daily penalty applies.
If a warehouse cannot unload the container within the allotted time, it is worth requesting a free time extension from the line in advance — many lines will agree if the freight forwarder submits a well-reasoned written request.
Terminal Storage Charge: The Terminal's Fee for the Container Occupying Space
Terminal storage is a charge levied directly by the stevedoring company (the port terminal), not by the shipping line. This is where first-time importers most often go wrong: many assume that demurrage and storage are the same thing. They are separate cost items from different parties, and both can accrue simultaneously.
Demurrage = the line's penalty for you not collecting its container on time.
Storage = the terminal's fee for your cargo occupying space on its premises.
Storage is charged from the 4th calendar day after the vessel's discharge date. The terminal provides the first 3 days free of charge — this is known as the "free storage" period. The count begins on the day the container is actually discharged onto the terminal, regardless of whether that falls on a working day or a weekend.
An important nuance: if customs clearance is delayed, storage continues to accrue — the terminal does not wait for the customs declaration to be released. This is exactly why document preparation must begin before the vessel arrives, not after.
Rates are indicative. The terminal sets charges in Ukrainian hryvnia (UAH) converted at the NBU exchange rate on the discharge date; for actual figures, contact your port freight forwarder or the stevedoring company directly at the time of shipment.
Refrigerated Containers and Out-of-Gauge Cargo
For refrigerated containers the terminal charges an additional reefer monitoring fee (for power connection and temperature monitoring) — approximately $5–15 per day on top of the base storage rate. For out-of-gauge and hazardous cargo (IMO), storage rates are generally 30–50% higher than the standard tariff.
Other Port Charges to Be Aware Of
In addition to THC, demurrage, detention and storage, the following charges may arise during sea delivery:
- BAF / BUC (Bunker Adjustment Factor) — fuel surcharge: compensates the line for fluctuations in bunker fuel prices;
- CAF (Currency Adjustment Factor) — currency surcharge when trading in volatile currencies;
- PSS (Peak Season Surcharge) — surcharge during peak season (October–December);
- GRI (General Rate Increase) — a general rate increase announced by lines periodically;
- Government port dues (vessel, lighthouse, navigation) — paid by the shipowner/agent, generally already included in the freight rate;
- VGM (Verified Gross Mass) — mandatory container weighing before loading; typically $20–50 per unit;
- Inspection fee — when a customs inspection is ordered, the port charges an additional fee for moving the container to the inspection zone.
How to Calculate the True Cost of Sea Delivery
The full cost formula for sea container delivery from Asia to a warehouse in Ukraine:
Total = Freight + THC (origin) + THC (destination) + BAF/CAF/GRI + Agency charges + Port storage (from day 4) + Demurrage (if line's free time is exceeded) + Detention (if return deadline is exceeded) + Customs duties + Delivery from port to warehouse
When cargo is collected on time (within the terminal's and line's free period), storage, demurrage and detention costs are zero. Every day of delay is real money: a 10-day overrun beyond free time can produce a combined bill across all three items of $400–900 for a single 40-foot container. Trans-Hope provides clients with a complete all-in cost breakdown before booking confirmation — not after the fact. Full details on our container shipping and port freight forwarding pages.
Who pays THC — the importer or the exporter?
What is the difference between demurrage and port storage?
From which day is storage charged at a Ukrainian port?
What happens if a container is not collected from the port on time?
Can the free time allowance be extended?
Is THC included in the freight rate or not?
Request a detailed cost breakdown from Trans-Hope for your shipment — itemised across all charges, including THC, storage, demurrage exposure and customs duties.
