Transshipment is a process of moving goods from one vessel or vehicle to another during the journey. It works like a connecting vehicle when there is no direct route available to reach the destination.
In international trade, cargo may be moved through an intermediate port. The goods can then continue their journey on another vessel. This is common in sea freight and helps connect different shipping routes.
How It Works:
- Goods are shipped from the origin port.
- They reach an intermediate hub.
- Cargo is transferred to another vessel or transport mode.
- Shipment continues to the final destination.
Benefits:
- Expands access to global shipping routes and destinations
- Optimizes logistics costs through hub based transportation
- Enables connectivity between ports without direct routes
- Enhances flexibility in international shipping networks
Example:
An Indian exporter sends goods to a buyer in Brazil. There is no direct vessel available for the route. The container is moved to another vessel at a port in Singapore. It then continues its journey to Brazil.