Transhipment

You might have seen the word transhipment on shipping documents or during freight tracking. It sounds like a technical term, but it’s actually a pretty common part of global logistics.

Here’s what it involves and why it matters.

Transhipment Meaning

Transhipment is when cargo is moved from one vessel to another during its journey to the final destination. This usually happens at an intermediate port. Instead of going directly from origin to end point, the goods make a stop where they’re transferred onto a different ship.

This stopover helps reach places that don’t have direct service or require routing through major transport hubs.

Definition of Transhipment in Practice

The official definition of transhipment is the act of transferring goods from one mode of transport to another during the journey. In most logistics scenarios, this involves moving cargo between ships.

Why Transhipment Happens

Sometimes, there’s no direct shipping route between the starting point and the final destination. In those cases, transhipping makes long-distance shipping possible.

Here’s when transhipment is used:

1. When the origin and destination ports are not directly connected

2. To reduce freight costs by using larger vessels for part of the journey

3. To shift goods from deep-sea carriers to smaller regional ships

Port of Transhipment

A port of transhipment is where this transfer happens. These ports are usually well-equipped with large terminals and play a major role in global supply chains.

Singapore, Rotterdam, and Dubai are popular examples where millions of containers are handled every year for transhipment purposes.

How Transhipment Affects Shipping

Understanding transhipment is important because it can affect delivery times, freight charges, and customs clearance. If not managed properly, it can cause delays or misrouting.

When planned correctly, though, it can offer flexibility and cost savings.

Final Thoughts

Transhipment plays a key role in international trade by connecting distant parts of the world through strategic stops. At Newl, we work with teams to make sure these transfers are well-coordinated, clearly documented, and aligned with delivery timelines.

Frequently Asked Questions

1. Does transhipment increase shipping time?

It can, depending on the port schedules and how quickly cargo is transferred. However, it often makes routes possible that wouldn’t exist otherwise.

2. Are transhipped goods subject to customs at the stopover port?

Usually not, since the goods aren’t entering the local market. But documentation still needs to be accurate.

3. Is transhipment only done by sea?

No, it can also happen with air and rail cargo when switching between carriers or routes.