ORC
Term Summary
ORC, or Origin Receiving Charge, is a fee collected at the port of origin to cover the costs of handling, receiving, and processing export containers before they’re loaded onto a vessel. This article defines ORC, explains why it’s charged, outlines how it affects shippers’ overall costs, and discusses recent charge adjustments in major Chinese ports.
ORC (Origin Receiving Charge) is a fee imposed by shipping lines or their appointed agents at the port of origin. It covers the cost of handling, receiving, and processing export containers at the origin port before they are loaded onto the vessel.
Key Terms and Definitions
| Term | Definition |
|---|---|
| ORC (Origin Receiving Charge) | A handling fee collected at the port of origin for receiving and processing export containers. |
| Port of Origin | The port where goods are loaded onto the vessel for international shipment. |
| Shipping Line | The carrier or company responsible for sea transportation of goods. |
Why is ORC Charged?
- Container Handling: Covers the port’s operational costs for receiving and stacking containers.
- Documentation: Includes services such as documentation verification and container inspection.
- Port Facilities Usage: Accounts for the utilization of port equipment, storage areas, and terminal infrastructure.
Scope of ORC
The ORC specifically applies to export shipments and is calculated per container, varying depending on port location, carrier, and container type.
Impact on Shippers
- Cost Transparency: ORC is a fixed, clearly itemized charge on shipping documentation.
- Budget Planning: Helps shippers prepare accurate freight budgets by understanding all origin port-related costs.
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