Today’s post is all about transshipment, what actually transshipment is and why transshipment did, and what are advantages and disadvantages of transshipment.
All these details are going to discuss in this article.
You often see terms written in an LC or export contract like transshipment allowed or transshipment not allowed, lets’s go to understand transshipment meaning in Import/Export Business.
What are Direct Shipment and Direct Vessel
First of all, I would like to explain the term of Direct Shipment and Direct Vessel.
That shipment will be called a Direct Shipment when the cargo vessels start their journey from the origin ports and reach destination ports via a direct route without offloading goods/containers at an intermediate port.
A vessel refers to a “Direct Vessel” that transports containers from a beginning destination to an end destination via a direct route.
What is Transshipment
When a cargo vessel starts its journey from the origin ports and offloads containers at the intermediate port before the goods are shipped to their final destination, at the intermediate port the containers are then transferred to a completely different vessel.
Advantages and Disadvantages of Transshipment
We have learned a lot about transshipment meaning, now we are going to discuss transshipment’s disadvantages and advantages.
Let’s get right into the data.
1) Time Consuming:
Due to all transshipment process origin port to, the intermediate port and then to the final destination, transit time will increases.
When shipping the cargo using the transshipment method, there are high risks of delay. because it takes additional time to offload a container and then place it onto another vessel.
1) Affordable Option
Sometimes, direct shipping will cost more as compared with transshipments. This is simply because direct shipments are generally in higher demand than transshipments.