Logistics Essays on Transloading

Transloading

Companies involved in shipping goods across international borders use many methods of transport, particularly if both the destination and shipping points are located inland. Transloading is one of these methods. Transloading can be defined as the transfer of products from one mode of transport to a different mode at the inland port in order for the products to reach their final destination. Therefore, cargo is transferred from a single load unit to another, which is particularly popular in containerized transportation. This essay examines the concept of transloading with the goal of explaining its applicability to maritime cargo transportation, especially container transport logistics.

Transloading allows shippers to reduce their stock and carriage expenses by unpacking the contents of a container and repacking them in another container that is more appropriate to transport them to the final destination (Song, & Panayides, 2015). There are several reasons why transloading is important. The first reason is the need for consolidation. When the domestic container unit is larger than the carriage container, the shipment is consolidated. Accordingly, three maritime containers can be transported in two domestic containers. The second reason relates to lease contracts. Businesses lease containers for a definite period (Song, & Panayides, 2015). Therefore, transloading is critical in ensuring that the contract terms are not breached and that the containers are handed back to the leaser without attracting additional charges. Moreover, transloading helps importers in the supply chain management by enabling them to consolidate loads for specific markets. For example, large retailers typically buy merchandize from numerous foreign suppliers. Through transloading, these retailers consolidate the loads for particular regional stores. Transloading is commonly used when it is not practically possible or economically efficient to use a single method of transit to transport products to their final destination. It benefits not only the importers, but also maritime shipping entities. As a result, transloading is significantly important in cargo logistics.

 

References

Bonacich, E. & Wilson, J. (2008). Getting the goods. Cornell University Press.

Song, D.W., & Panayides, P. M. (2015). A guide to contemporary shipping and port management. Kogan Page.