Glossary

Transhipment

Definition

Transhipment refers to the process of transferring goods from one mode of transport to another during their journey from the origin to the destination. This process is common in logistics and supply chain operations, particularly in international trade where goods often need to travel by a combination of sea, air, rail, and road transport. Transhipment can occur at any point in the supply chain, such as seaports, airports, or freight terminals, where goods are transferred between vehicles or vessels to continue their journey.

— sennder Team

FAQ

Transhipment is often necessary when goods need to travel long distances or cross international borders, and a single mode of transport isn't sufficient or efficient. For example, goods might be shipped by sea and then transported by road or rail to reach their final destination.
Benefits of transhipment include flexibility in transport planning and the ability to use the most effective and cost-efficient combination of transport modes. Drawbacks include potential delays during transfer, increased handling which may lead to damage or loss, and added complexity in logistics planning and tracking.
In customs procedures, transhipment often requires specific documentation to ensure that goods are not unlawfully diverted or subject to duties and taxes. This might involve transit documents or re-export declarations, depending on the countries involved.
Transhipment can affect logistics costs in several ways. While it can reduce costs by enabling the use of cost-efficient transport modes, it can also increase costs due to additional handling, storage, and documentation requirements.
Example or usage in road freight logistics

An electronics manufacturer in Japan is shipping goods to a retailer in Germany. The goods are transported by road from the factory to a seaport in Japan. They are then shipped by sea to the Netherlands where they are transferred to trucks and transported by road to Germany. This involves multiple transhipments at various points.

Share this post
Keep reading