The transshipment process has become a major aspect of international cargo shipping. For new shippers, they should know that transshipment involves routing cargo between locations or vessels during the transportation process before reaching the destination. Many shipping companies might use transshipping for cargo shipments and there are several reasons. It is used for changing transportation modes in the life of the shipment, for consolidating containers, if there is no direct passage into a port or to save money.

Economically, transshipping might make sense by coordinating different vessels to efficiently handle cargo between different ports. In addition, some shippers use transshipping because in certain cases they might avoid expensive duty prices. Transshipping has been around for years; it has gained more popularity in the logistics industry now. And many companies across the US and around the world use transshipping everyday.

Despite the positives of transshipping, there are some reasons why many carriers prohibit it in certain circumstances. Transshipping might increase damage to your cargo, and sometimes there are cases of counterfeit shipments or smugglers who use transshipping. For those who depend on transshipping for their supply chain’s shipping, there are few things you can do to best protect your shipment. Working with a trusted freight forwarder, who has the experience and knowledge of completing a transshipment, is a great first step. In addition, it would be helpful if the exporter in this process provides the Export Control Classification Number (ECCN) and all information to the freight forwarders so that the shipment can be processed and planned smoothly.