/tr/lp/blog/key-terms/transshipment
What is Transshipment?
12/09/2024
Transshipment cargo describes the process that requires cargo to be unloaded from one vessel and reloaded onto another in a different port during transportation. To put it simply, the cargo is shipped from point A to point B via point C where it is unloaded and reloaded. It is from point C that the cargo’s journey to its final destination is made. For example, a transshipment route could be from Fos-Sur-Mer to New York with Valencia Port acting as the transshipment hub.
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The main difference between direct shipments and transshipments is that direct shipments do not involve unloading and reloading the cargo during transportation. Transshipments are also relatively cheaper than direct shipments, however, they can also be comparatively longer.
When organizing transshipments for our customers, we prioritize a customer focused approach at MSC. This allows us to ensure we meet every shipping requirement needed to make sure your cargo arrives at its final destination safely and timely.
Are there Benefits?
Although direct shipments are comparatively quicker than transshipments, there are several key advantages of transshipments.
One benefit is that transshipment can allow you to avoid hold-ups in the final port of destination due to congestion. In congested ports unloading cargo can be difficult and more time consuming. In these cases, it can be quicker to unload cargo in the transshipment hub and transport it to the final destination in a smaller vessel or via a different mode of transportation.
For customers whose cargo requires customization because of certain local requirements (for example packaging requirements), it can be more cost effective to customize the cargo in an intermediate port (for example Port Klang in Malaysia).
Are there Benefits?
Although direct shipments are comparatively quicker than transshipments, there are several key advantages of transshipments.
One benefit is that transshipment can allow you to avoid hold-ups in the final port of destination due to congestion. In congested ports unloading cargo can be difficult and more time consuming. In these cases, it can be quicker to unload cargo in the transshipment hub and transport it to the final destination in a smaller vessel or via a different mode of transportation.
For customers whose cargo requires customization because of certain local requirements (for example packaging requirements), it can be more cost effective to customize the cargo in an intermediate port (for example Port Klang in Malaysia).
Overall transshipments can be more efficient than direct shipments and more environmentally friendly. This is because certain shipments can be consolidated so that one large vessel can transport a large cargo volume over a certain distance rather than multiple vessels only taking direct cargo shipments.
What are the reasons to consider a transshipment?
- Lack of a direct route between the port of origin and the port of destination. In these cases, cargo will need to be shipped via ‘point c’ where it can be reloaded and shipped to its final destination.
- Reduced overall shipping costs.
- Deconsolidating larger shipments into smaller vessels and vise versa, smaller shipments can be consolidated into larger vessels, achieving economies of scales. This is key in instances where the final port cannot accommodate a larger vessel.
- Intermodal transportation which allows cargo to be switched from one form of transportation to another (for example, from a ship to road transportation).
At MSC, we have continued to invest in our intermodal infrastructure and inland logistics solutions. Our local experts are always up to date on the best road and rail routes which enables us to ensure your overall supply chain runs as smoothly as possible.
Transshipment FAQs
What kind of documents are needed in transshipments?
The documents required for transshipment and direct shipping are the same, and specific to the country or destination.
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Choosing MSC as your shipping partner means you’ll be working with experts who have the local knowledge, technology, and experience to recommend the best shipping solution for your business. Our range of intermodal transportation solutions enables us to quickly and effectively ensure that your cargo is on track to reach its final destination on schedule.
