Everything You Need To Know About Inland Haulage Charges

 Have you ever wondered about the sneaky little fees hidden in your shipping invoice? If you have ever shipped anything internationally, you must know that it is not as uncomplicated as it may seem.

While the process may seem exciting with big ships, tanks, and goods involved, have you ever thought about what those fancy terms written on your invoice mean? Looking at that paper, you will notice a slight line that will make you raise an eyebrow: Inland Haulage Charges (ICH). 

While you pretend to understand this term, do you know what it means, and why does it cost that much to move something by road? Let’s dig into everything you need to know about these charges so that next time you don’t have to pretend to know this term. 

What Are Inland Haulage Charges, Anyway?

Since the term itself seems daunting, we will start simple by knowing what these inland haulage charges are. It refers to the cost of moving cargo over land, usually between a seaport or airport and your warehouse, factory, or distribution centre.

Let’s imagine you import sneakers from Vietnam to Dubai, your container will most probably arrive at the infamous Jebel Ali Port, but your store is located in Sharjah. How does that container move from that port to the store? That transportation is what your Inland Haulage comes from. 

It is obvious that the containers don’t have wheels and cannot deliver the goods to your doorstep. 

Can We Skip Inland Haulage Charges?

No, we can not skip it!

Most of us obsess over air freight rates or sea freight costs, but forget that your cargo’s journey doesn’t end at the port. If there is no inland haulage, the containers will just sit there. 

Inland haulage makes sure your shipment:

Gets to the port on time for export (called pre-carriage)

Reaches its destination after arriving at the port (called on-carriage)

So, Who Pays for It?

Another valuable question, whose answer lies in those fancy shipping terms, decides who is responsible for what. 

• EXW (Ex Works)

You (the buyer) handle everything from the seller’s door. Inland haulage? That’s on you.

• FOB (Free On Board)

The seller gets it to the port; you handle it from there. Post-port inland haulage? Also you.

• DAP (Delivered at Place)

The seller handles everything, including inland haulage at the destination.

• DDP (Delivered Duty Paid)

The seller is your logistics hero—they cover everything, including duties and inland transport.

In short, depending on the terms you have agreed on, the inland haulage can be your responsibility or the other party’s. 

What Impacts Inland Haulage Charges?

To simplify this explanation, let’s take an instance. Think of it like ordering a pizza. The price depends on:

How far are you?

What toppings do you choose?

How fast do you want it to be delivered?

Seems easy right now, just replace pizza with the container and toppings with logistics complexities. Here are things that can impact the charges: 

• Distance

More kilometres = more fuel, more labour = higher costs. Obvious, but important.

• Mode of Transportation 

Depending on the distance and type of goods you are delivering. 

• Truck: Ideal for shorter distances, quick deliveries.

• Rail: Great for long hauls, often cheaper but less flexible.

• Combination (Multimodal): Sometimes a mix of rail and road gives the best balance.

• Size and Type of Shipment

The size and type of the shipment are super important. So think about the following:

• Is it a 20ft or 40ft container?

• Is it Refrigerated or standard?

• Is it Oversized or odd-shaped?

This is related to the equipment and handling, which adds to the bill. 

• Shipment Load

• Full Container Load: One shipment per container.

• Less than Container Load: Multiple shipments share one container.

While in most cases LCL is cheaper but it involves more stops and handling, which can take more time and even increase the Inland Haulage cost. 

• Location Access

Urban warehouse? Easy. Remote site up a mountain? That means a bigger logistics bill. 

• Time Sensitivity

Dealing with deadlines? Express services will cost more money. 

Who Provides Inland Haulage?

Lucky for you, there are many options to choose from, but again, always assess pros and cons: 

• Freight Forwarders

You get door-to-door service, and the inland haulage charges are mostly included in their quotes. 

• Shipping Lines

Many offer inland haulage as an add-on. This is called carrier haulage. They are simple but not very flexible and difficult to schedule. 

• Third-Party Trucking Companies

You can put some effort into finding a local transport firm. It can be cheaper and gives you control. 

How To Save Money on Inland Haulage? 

Yes, while it isn’t a huge difference but it can still be much more reasonable. 

• Plan Early

Last-minute bookings cost more. Secure your inland transport in advance to lock in better rates.

• Consolidate Shipments

Instead of several LCL shipments, try one FCL load. You’ll save on per-unit handling and inland moves.

• Choose the Right Route

Some routes are congested, while others might avoid toll roads. Ask your logistics partner about the most efficient paths.

• Use Nearby Ports or ICDS

If there’s an inland container depot (ICD) closer to you, routing through there could save time and money.

• Negotiate a Contract

If you’re a frequent shipper, sign a haulage contract. Regular volumes often bring better rates.

Common Mistakes

If you are new to the whole process, it is easy to make some errors. Here is what not to do: 

• Not Asking What’s Included

Sometimes “door delivery” doesn’t include inland haulage. Clarify upfront.

• Assuming It’s Covered by Freight

It often isn’t. Freight = port-to-port. Inland haulage = separate.

• Ignoring the Small Print

Access fees, waiting time charges, fuel surcharges, they can sneak into your bill if you’re not careful.

Conclusion

Indeed, inland haulage charges are not the most exciting part of global trade, but they sure are the most important. They act as the glue that holds the global shipment puzzle together. 

If there is no inland haulage, your containers will never leave the port, which will cause many problems, like delays in deliveries. They just sit there, racking up storage fees. So, now the next time you see the IHC on your invoice, you don’t have to panic because you already know what it is. 

Partner with MTI Logistics for transparent and affordable inland haulage charges to keep your goods moving at low costs.