What are Inland Haulage Charges? How do they occur? Are they avoidable? There are many more such questions that can easily confuse anyone who is just getting started with the export/import business. If you’re one of those individuals, then this guide is for you. Read the section below to find out the answers to all of your IHC related questions.
What Are Inland Haulage Charges?
Inland Haulage Charges or IHC are the transportation charges incurred from the movement of container freight stations to the Port of loading and vice-versa. If the freight station is away from the Port of loading, then the sender completes all the customs formalities at that freight station and does all the arrangements for sending cargo to the Port of loading either by road or railways. Most of the times, such distances are covered by rail and in such scenarios, the charges of moving goods from a distant location to the seaport of loading or moving charges from the port to an Inland freight station are termed as the Inland Haulage Charges.
Generally, the Inland Haulage Charges vary from one container freight station to another because the distance between any station and the respective port loading varies from place to place.
When Do Inland Haulage Charges Occur?
The Inland charges occur in a scenario when the cargo owner has hired the carrier or the freight forwarder in order to arrange the on or pre-carriage to the particular Inland location.
There are basically three locations for which inland haulage is arranged:
Shipper’s Location – At the origin
Buyer’s Location – At Destination
Inland Container Depot (ICD) – At origin /destination
Freight forwarders and ocean carriers typically have a large network of partners and even their own team to move freight inland.
Can You Avoid Inland Haulage Charges?
Yes, one can easily avoid the Inland Haulage Charges by arranging the pre or on a carriage with their own providers and not hiring an ocean carrier. However, by not appointing an ocean carrier, you will have to arrange, monitor, and pay for this extra transportation on your own.
Also, things get a little bit more complicated when it comes to moving a shipment through a rail or barge. For such types of difficult movements, it is highly recommended to work with a reliable shipping line or a freight forwarder as they have a vast network, business relationships, and volume in exchange for an affordable rate, speedy transport, and convenience.
Depending on the requirements of the cargo owner, the quotations are offered in a way so that they help the cargo owner in understanding the entire process and how the cargo will move from source to the destination. In most cases, carriers are more affordable than private arrangements because of their network and partnerships in different regions.
Are Inland Haulage Charges (IHC) Same As Terminal Handling Charges (THC)?
Most of the time, Inland Haulage Charges are confused with Terminal Handling charges as both of them are related to carriers. But that’s completely wrong. Both are different types of charges and occur during different scenarios.
Terminal handling charges (THC) are the charges imposed by the carrier or freight forwarder on the owner of cargo for handling all the activities that occur on the port. These activities include the unloading/storage of containers at the terminal, loading /unloading of goods to a truck, use of cranes, and the movement of containers within the Port’s premises.
On the other hand, the Inland Haulage Charges are the charges incurred for transporting a container from an external location to the port of loading or from the destination port to an external location.
Another difference is, THC occurs with every single shipment, but IHC only occurs in particular situations where the CFS is away from the port.