Transshipment

Transshipment

Transshipment or Transhipment is the shipment of goods to an intermediate destination, and then from there to yet another destination.

One possible reason is to change the means of transport during the journey (for example from ship transport to road transport), known as transloading. Another reason is to combine small shipments into a large shipment, dividing the large shipment at the other end. Transshipment usually takes place in transportation hubs. Much international transshipment also takes place in designated customs areas, thus avoiding the need for customs checks or duties, otherwise a major hindrance for efficient transport.

Note that transshipment is generally considered as a legal term. An item handled (from the shipper's point of view) as a single movement is not generally considered transshipped, even though it may in reality change from one transport to another at several points. Previously it was often not distinguished from transloading since each leg of such a trip was typically handled by a different shipper.

Transshipment is normally fully legitimate and an everyday part of the world's trade. However, it can also be a method used to disguise intent, as is the case with illegal logging, smuggling or grey market goods.

See also

* Customs area
* Entrepôt
* Free port
* List of world's busiest transshipment ports

References

* [http://www.itintl.com/what-is-transshipment.html What Is Transshipment?] from Informed Trade website
* Rojas, E.; MCS Observers on board at-sea Transshipment Vessels. In: APO Mail Buoy Vol. 10 (3). pp. 8-9. 2007.


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