What are Inland Hauling Charges?

The Inland Hauling Charge is the transportation charge issued by the carrier to the cargo owner. This IHC covers the cargo’s moving costs from the container freight station to the port and vice versa. IHC is part of the overall ocean freight charges, and they are typically quoted separately when such services are requested.

When do the Inland Hauling Charges occur?

Inland Hauling Charges only occur when the cargo owner appoints the freight forwarder to arrange the cargo transport to or from an inland location. Typically, there are three locations where inland haulage is being set to:

  • Consignee’s premises — located at the destination
  • Shipper’s premises — situated at the origin
  • The inland container depot — located at the source or destination.

How is inland haulage arranged?

After the costs have been agreed upon between the cargo owner and the freight forwarder, the carriers will start arranging the inland cargo shipping. The first step is to move the cargo from the port to the inland container depot at the carrier’s location or from the shipper’s depot to the port.

Can Inland Hauling Charges be avoided?

Inland hauling charges can be avoided if the shipper or the consignee decides to arrange transportation with their vendors and not with an ocean carrier. Although the IHC will not be required, the shipper will have to monitor, arrange and pay for the additional transportation.

Summing Up

Inland Hauling Charges or IHC are important factory while receiving the container package at one destination from other. The charges and their distribution is crucial factor to calculate when you are shipping in a longer route. Even if you want to avoid the inland hauling charges, you should carefully know the process to arrange the transportation accordingly.

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