Every day, thousands of ships bring valuable items from their origin to destination. The primary purpose of most ships is to transport. For example, tanker ships transport oil. Passenger ships carry people. Bulk cargo ships carry precious cargo. But there are some cases where items or cargo cannot be transported directly from their origin to their final destination. Sometimes it has to go to an intermediate point before going to their final destination. When this happens, it’s called transshipment.
What is transshipment?
Transshipment is defined as when goods, before shipping it to its final destination. For example, a cargo shipment of iron ore can travel on ground before transferring to a ship to be transported overseas. This is one example of transshipment. Another example is when cargo travels from an origin, to a central hub, then to a regional hub, then to its final destination.
Why do we transship?
Transshipment can happen because of a myriad of reasons.Most often than not, it is because direct shipping is made impossible or inconvenient in comparison. It might seem silly to think about, but here’s just a few reasons why transshipment might occur:
1. Price
There are some cases where it is not economically viable for goods to be transported directly. Sometimes there is no direct link between two countries, or if there are, it is a highly expensive option, so transshipment is more preferred.
2. Port of destination
If the port of destination cannot accommodate large cargo vessels then it might not be possible to directly ship the goods. Transshipment occurs when the cargo is transferred into a smaller vessel.
3. Trade
Trade rules imposed by countries can be complex and restrictive. Transshipment sometimes occurs to avoid trade restrictions. But not to worry, transshipment is usually a very safe and legal practice.
Are you looking for excellent transshipment management services right here in Singapore? MSI Ship Management is the right place to look. We are one of the best transshipment management companies, and an excellent choice for all your maritime needs.
