How to Record Terminal Handling Charges Paid to Port Authorities for Container Movements
Expensing the mandatory port terminal fees for loading or unloading containers at Aqaba or Jebel Ali.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Port & Handling Expense | Expense (+) | 150.00 | - |
| Cash / Bank | Asset (-) | - | 150.00 |
💡 Accountant's Note
These are mandatory costs at ports like Aqaba or Jebel Ali to move containers from the ship to the yard.
Practitioner & Systems Framework
💻 ERP Architecture
Terminal Handling Charges (THC) are levied by the shipping line at both origin and destination ports — they cover the movement of the container from the ship to the port yard (or vice versa). THC is always charged separately from the ocean freight rate. For import shipments, the importer or their agent pays the destination THC; for exports, the exporter pays the origin THC. Track THC per shipment as a direct freight cost. For freight forwarders, THC paid to the carrier is a cost of the shipment; THC charged to the client is revenue (or included in the bundled freight price). Aqaba Container Terminal (ACT) publishes standard THC tariffs.
⚠️ Audit Flags
Auditors check that THC is not double-billed (charged both in the ocean freight rate and separately). Compare THC invoiced by the shipping line to the published tariff — overcharging above the tariff is a billing error to dispute. For freight forwarders, if THC is billed to the client separately, it should appear as both revenue and cost (gross presentation if the forwarder controls the service); if bundled into the freight rate, no separate line is needed.
📄 Required Documentation
Shipping line invoice or terminal receipt showing THC separately, THC rate per container type (20ft, 40ft, HC), port tariff for comparison, shipment Bill of Lading linking to the THC charge, client billing of THC (if recharged), and payment confirmation.
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Expert Analysis by Qusai Ahmad
General Accountant Supervisor & IFRS Specialist
Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.