An import quote shows ocean freight, and then the invoices keep arriving. Terminal handling, storage, container delay, documentation. Importers often discover port charges only after the cargo lands, when the bill is hardest to change.
This guide explains what port charges are, the main types, a breakdown of common port charges in India, who levies each one and how to avoid the ones that can be avoided.
What are port charges?
Port charges are the fees paid for services and facilities at a port. Some are levied on the ship, such as berthing and dock dues. Others are levied on the cargo or the container, such as terminal handling and storage. A few are penalties for staying too long, such as demurrage and detention.
An importer may not see every charge directly. Vessel-side fees are usually paid by the shipping line and recovered through freight and surcharges. The cargo-side fees reach you as separate line items from the line, the terminal or your forwarder.
Types of port charges
| Group | Examples | Usually paid by |
|---|---|---|
| Vessel charges | Port dues, dock dues, berthing, pilotage | Shipping line |
| Cargo handling | Terminal handling, wharfage, port handling | Shipper or consignee |
| Storage | Port or container freight station storage | Importer |
| Delay penalties | Demurrage, detention | Importer |
| Customs and documents | Delivery order, clearance, agency fees | Importer |
The exact names and amounts vary by port, terminal and shipping line. Check the terminal's published tariff and your quote for the details that apply.
Breakdown of common port charges
Terminal handling charges (THC)
Terminal handling charges cover the work the terminal does with a container: moving it between the vessel and the yard, storage in the yard and general handling. They have an origin side and a destination side. The destination THC is collected by the carrier from the consignee at the destination port before the cargo is released.
For full containers, terminals usually charge a fixed amount by container size, such as 20 foot, 40 foot or 40 foot high cube. For LCL cargo, charges are typically based on weight or volume. Rates differ by port and terminal.
Port handling charges
Many forwarders and carriers fold general port handling into the terminal handling charge, so ask whether it is billed separately.
Wharfage
Wharfage is a fee for using the wharf to load or unload cargo. Each Indian port authority sets its own rate, and cargo is often charged on revenue tonnes, which is the greater of weight or volume. In practice, wharfage is often included in the THC billed by the shipping line, so check how your invoice shows it.
Dock dues and port dues
Dock dues and port dues are charges on the vessel for using the port. They depend on the size of the ship and the time it spends in port, not on your cargo. The shipping line pays them and recovers the cost through freight. You are unlikely to see these on your own invoice.
Berthing charges
Berthing charges are what a ship pays for using a berth to load and unload. Like dock dues, they are a vessel-side cost for the line. They only matter to you when a carrier passes on a surcharge linked to port congestion.
Storage charges
Ports, container freight stations and inland container depots give a free period for cargo to stay. After that, storage is charged, usually in tiers that rise over time. At major ports the free period is typically a few days, often between 3 and 7, but it varies by custodian and cargo type, so confirm it before the vessel arrives.
Demurrage charges
Demurrage is a charge for staying beyond the free time. In Indian practice, the term is used in two ways:
- Port, CFS or ICD demurrage. The custodian charges it when goods stay in the customs area beyond the free period.
- Shipping line demurrage. The line charges it per container, per day, when a container stays inside the terminal beyond the free days.
Read your carrier's terms and the custodian's tariff to see which one applies.
Detention charges
Detention is charged by the shipping line when you keep its container outside the port after pickup and do not return it within the allowed days. It is mainly contractual, based on the bill of lading terms. Charges per day rise with time.
Customs, documentation and agency charges
These include the delivery order fee, the customs broker's fee and other local charges. They are separate from port charges but appear on the same import bill. Our guide to customs clearance charges in India covers what else makes up the total.
Who pays which charge?
- Under CIF or CFR terms, the seller pays freight to the destination port and the buyer pays destination charges.
- Under FOB, the buyer pays freight and all destination charges.
- Under DAP and DDP, the seller covers more of the destination costs, and under DDP also duties and taxes.
Always match the sales contract, the Incoterm and the quote. Our sea freight service covers the booking side.
What makes port charges rise
- Late customs clearance. Cargo that waits for documents, duty payment or inspection runs through its free days.
- Missing or wrong documents. Corrections take time, and every day counts.
- Congestion at the port. Slow gate movements and yard delays eat into free time.
- Late container pickup or return. Detention builds daily.
- Wrong description or HS code. These can trigger queries and examination.
How to avoid extra port charges
- Share documents early. Send the invoice, packing list and bill of lading to your customs broker before the vessel arrives.
- File the bill of entry in advance. Start the filing before the cargo lands, so clearance begins on arrival.
- Keep duty money ready. Delays in paying duty can push you into storage charges.
- Know your free days. Ask for the free time at the port and for the container.
- Plan inland transport. Book trucks before the container is released.
- Return containers on time. Check the return location and deadline.
- Ask for an itemised quote. Compare origin and destination charges line by line.
If customs detains the goods through no fault of yours, some storage and container charges may be waived under the rules. Raise this with your customs broker quickly and in writing.
How IWCC helps importers
Interworld Cargo Care has moved cargo since 1993 and is a licensed customs house agent. We confirm free days, file early and coordinate pickup, so your cargo moves out of the port before charges build.
Planning an import?
Share your shipment details and we will outline the charges at each stage. Get a free quote or call 098110 59654.
