International Shipping Fees Explained: THC, GRI, Demurrage, and More
If you’ve read an international moving quote closely, you’ve probably run into terms like THC, GRI, or demurrage without a plain explanation of what they actually mean or when they apply. As a licensed overseas moving company, here’s what these fees actually are, so nothing on your invoice is a mystery.
THC: Terminal Handling Charges
THC is the fee a port terminal charges to physically handle your container within the terminal itself: moving it from the ship to the yard, staging it for pickup, and the general labor of operating the facility your container passes through. THC applies at both the origin and destination port, and depending on your specific quote and destination country, it’s sometimes built into your quoted price and sometimes billed as a separate line item. It’s worth confirming which applies to your route rather than assuming either way, since it can meaningfully change what your final invoice looks like.
GRI: General Rate Increase
Ocean carriers periodically raise their base rates across an entire shipping lane, often tied to seasonal demand spikes or fuel cost shifts, and these increases are called General Rate Increases. They’re announced by the carrier, not by your moving company, and they can take effect on short notice. If you book your move far in advance or push your ship date out significantly after getting your initial quote, the underlying ocean rate can change before your container actually sails, which may require your quote to be rechecked against the new rate.
Demurrage and Per Diem
Demurrage and per diem are time-based charges that apply when a container sits at a port or terminal longer than the free time the carrier allots, typically a handful of days built into the base freight cost. Once that window passes, the charges accrue daily until the container moves. These aren’t standard fees on a well-run shipment; they show up when something delays pickup or clearance: a vessel delay, a customs hold, port congestion, or a client not being ready to receive their shipment on the scheduled date. Careful scheduling around documentation and pickup dates is what avoids them in the first place.
Delivery Order Fee
A Delivery Order fee is a destination-side charge tied to releasing your container from the terminal to whoever is picking it up. It comes up in specific situations rather than every shipment, for example, if a port is congested and cargo needs to move to a bonded warehouse before customs can process it, adding an extra handoff and its own release paperwork.
BAF: Bunker Adjustment Factor
BAF is a fuel surcharge carriers apply on top of the base ocean freight rate, tied to fluctuations in bunker fuel (the fuel ocean vessels run on) prices. Unlike a GRI, which is a rate change tied to demand or capacity, BAF moves with global fuel costs specifically and can be adjusted more frequently. It’s generally built into the freight cost you’re quoted rather than billed separately, but it’s part of why an ocean freight rate quoted today can look different from the same lane a few months later.
ISF: The Filing That Carries a Real Penalty
The Importer Security Filing, commonly called ISF or “10+2,” is a US Customs and Border Protection requirement for every ocean shipment entering the country, and it’s not really a fee in the same sense as the others above; it’s a filing with a real financial consequence if it’s missed. CBP requires ten data elements about the shipment (importer, seller, consignee, country of origin, and similar details) submitted at least 24 hours before your container is loaded onto the vessel at the foreign port, not 24 hours before it arrives in the US. A late, inaccurate, or missing ISF filing carries a $5,000 penalty per violation, up to $10,000 total liability per shipment, and can also trigger cargo holds or additional inspection. This filing applies to every ocean shipment regardless of value; there’s no exemption for smaller shipments. On a household goods move, your moving company or freight forwarder handles this filing on your behalf as part of the shipping process, but it’s worth knowing it exists, since it’s the reason your documentation and shipment details need to be finalized well before your container actually ships, not the week of.
Why These Aren’t Always in the Base Quote
Some of these fees are predictable and get built into your quote from the start. Others, like demurrage or an unplanned Delivery Order fee, only apply when something outside a normal timeline happens: a delay, a hold, congestion at a specific port on a specific week. A moving company that quotes every possible contingency fee upfront on every shipment isn’t being more transparent; it’s padding a number that mostly doesn’t apply. The more useful approach is understanding what each fee is and what triggers it, so if one does show up, it’s a known term rather than a surprise.
Frequently Asked Questions
Can I avoid demurrage charges entirely?
In most cases, yes, with complete documentation submitted on time and being ready to receive your shipment on the scheduled date. Demurrage generally comes from something outside a normal timeline, not from a standard, well-documented move.
Is THC always included in my quote?
It depends on your specific route and destination country. Ask your coordinator to confirm whether THC is built into your quoted price or billed separately for your specific shipment.
If a GRI happens after I’ve already gotten a quote, do I have to pay the new rate?
It depends on your booking terms and how far out your ship date is from when you received your quote. Ask your coordinator directly if your timeline is extended, so there are no surprises if a rate change happens between quoting and sailing.
Questions About Your Quote?
We’ll walk through every line on your proposal so you know exactly what’s included and what could apply in your specific situation. Request a quote to get started.
