How to save your money with Transshipment?

Transshipment is an essential concept in maritime transportation. This blog helps you to identify the transshipment concept and advantages of the transshipment.

What is transshipment?

Also called Transshipment or trans-shipment. The simple meaning is a movement of goods from one place to another place which is not the final destination but the intermediate point of the transportation process.

Transshipment is unloading cargo or container from one ship and loading in another ship to the destination port. Commonly transshipment is used in sea transportation. In the transshipment port relevant transshipment cargo is calculated two times for port performance because one ship is unloading that items or cargo after that loaded goods to another ship.

An example of transshipment is below,

Country B is doing transshipment.
Country B is importing goods from Country A.
Unloading cargo in the port of country B’s free trade zone.
Re-export the shipment to country C by using another vessel.

The vehicle is imported from Country A and is unloaded from a vessel at the port of Country B, then tranship the vehicle to country c by another vessel. In the transshipment process, there is no value addition at the port of intermediaries. The same item or same cargo is re-export to another country.

Transshipment cargo imports to the port and without any value addition or modification the same cargo are re-export to another country. Normally transshipment cargo is allowed 21 days of free storage facilities from the date of import. But free days of transshipment cargo vary from country to country.

If the added value to the imported cargo at the transshipment hub and re-export to another country or port, it’s called entrepot trading.

The main difference between entrepot trading and transshipment is the value addition at the intermediary or transshipment port.

For understanding more details about entrepot trading you can read the post of Entrepot Trading.

What is cargo transit?

Cargo in transit meaning is the transportation of cargo from the origin point by passing through another country’s border. Those cargoes are called transit cargo.

What is a transshipment hub?

It is an intermediate port of the shipment delivery process and where the place handles many goods by loading and unloading one ship to another. In another hand where the place involves a large number of vessels. As well as other modes of transportation like trains and trucks, and also airplanes.

What is transshipment cargo?

Goods are unloaded from a ship for the purpose of loading for another ship. It is the meaning of transshipment cargo in sea transportation.

Why do transshipments?

The main reason for Transshipment is when the destination port is not available for direct shipping access.

What are the advantages of transshipment?

Cost reduction

It may be an affordable shipping option. It may be direct shipment cost is higher than the transshipment cost. At that time transshipment is the best option. That’s why transshipment is famous.

Enhance Flexibility

Transshipment can get the advantage of the change the shipping routes according to market conditions. And also it is more flexible to switch alternative routes including multimodal(air, sea, land)transportation options.

If there may be any conflict in the planned ports or natural disaster effect you can easily change the route as a transshipment to avoid delays. If your shipment occurs delays mean ultimately you have to bare more cost. So transshipment can avoid delays by using alternative routes using when an emergency situation.

Increasing accessibility

The transshipment concept is to avoid the restrictions of the routes and also the size of the vessels. Because some large size ships can not reach small ports. Due to the berth is not in a position to reach that size of the ship. As well as the port or terminal is unable to provide specialized facilities for the ship.

To avoid such things transshipment is the best option. Because transshipment process you can reach any type of port and you can find more optional routes. You may have to reach unpopular destinations with the transshipment option you can reach your shipment around the world.

You can select the best route for your shipment considering less cost and more efficiency. It saves money and time.

When involving international trade transport cost is the huge cost of a supply chain. So reducing transport costs means the entire supply chain cost automatically decreases.

To get the advantage of the facility of free customs tariffs and duty

for the transshipment of cargo, there is a free customs duty facility.And also a free storage facility for specific time periods which is called free days. Free days vary from port to port as well as type of the cargo.

This free customs duty facility saves money during transportation.

What are the disadvantages of transshipment?

More time-consuming than direct shipping
There is a risk related to delays in ports. Because of loading and unloading goods from one vessel to another.

What is the difference between direct shipment and transshipment

Transshipment is a very important concept in maritime transportation. This blog helps you to identify the world’s busiest transshipment ports while simple explanation of the transshipment concept and other details.

Transshipment:

Also called Transshipment and trans-shipment. The simple meaning is a movement of goods from one place to another place which is not the final destination but the intermediate point of the transportation process.

An example of transshipment is below,

What is the difference between direct shipment and transshipment?

Use one ship from the origin port to the final port of destination. Loading is done by the origin port and unloading goods is when the vessel receiving at the last port. But transshipments shipment is loaded into the ship in the port of origin while unloading the cargo in the intermediate port then load the cargo to another ship.

Direct shipment	Transshipment
Use one ship	Use more than one ship
Loading at the origin port	Loading at the origin port and transshipment hub
unloading at the final port	Unloading at transshipments port and also final port

Transshipment vs Direct shipment

What is the difference between transshipment and entrepot trading?

Transshipment and entrepot trading is the same when looking at them in basics. Both shipments are coming from a country and the cargo is re-export to another country. But the concept is different. Transshipment cargo imports to the port and without any value addition or modification the same cargo are re-export to another country. Normally transshipment cargo is allowed 21 days of free storage facilities from the date of import. But free days of transshipment cargo vary from country to country.

But entrepot trading there is import as well as need to do value addition to the cargo. Such as relabeling, and packaging, at least up to 30% of goods value need to do value addition. Then can get the advantage of the entrepot trading facilities such as duty exemptions.

after importing goods to the country goods transfer to a duty-free zone that is near to port or within the port area. Adding value to the imported goods and you can re-export the shipment. There is a specific free time period for exporting the value-added items or modified items, if exceed the free days need to pay storage chargers.