Foreign-trade Glossary + Calculators
Charges
Port Charges
Umbrella term for local fees incurred at a port for handling, berthing and documentation of cargo, often quoted by forwarders as bundled local charges.
Port Charges is not a single line item but a collective term for the local fees a shipment accrues while berthing, loading or discharging at the origin or destination port. Typical components include terminal handling charges (THC), port/security fees (ISPS), documentation fees, seal fees, wharfage and storage. The exact line items vary by port, carrier and forwarder.
- Responsibility follows the Incoterms rule: under FOB the seller covers origin loading-related local costs while ocean and destination charges fall to the buyer; under CFR/CIF the seller pays ocean freight to destination, but destination discharge/local charges are usually still the buyer's, so the contract should state this explicitly.
- Watch-out: a quoted ocean freight often excludes local charges, so always confirm whether the price is all-in or ocean-freight only.
FAQ
- Under FOB, who pays the port charges?
- Origin-side and loading-related local fees (origin THC, document fee, seal fee, etc.) are the seller's; ocean freight, destination local charges and everything after are the buyer's. List each item in the contract to avoid disputes over what counts as before or after loading.
- Why is the actual bill much higher than the low ocean freight my forwarder quoted?
- A low number is often ocean-freight-only and excludes port charges, THC and document fees. Before booking, ask for an itemized quote, confirm whether it is all-in or ocean-only, and clarify who pays origin vs. destination local charges.
Related terms
Sources: https://www.maersk.com/local-information · https://www.iccwbo.org/business-solutions/incoterms-rules/incoterms-2020/