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Showing posts from March, 2024

Transshipment Explained: How It Impacts Your Supply Chain

When shipping goods around the globe, sometimes they just don't travel from Point A to Point B. Sometimes, they travel on more complex routes with various stops along the way. This process is called transshipment. But what is transshipment, and how does it impact t he supply chain? Let's break it down simply below.    What is Transshipment?     Transshipment is like taking a bus: You transfer at a station to another bus before reaching your final stop. It's a process where goods are moved from one vehicle or ship to another at a midpoint location. Goods don't move directly from their origin to the final destination ; they have to reach a port or airport, unload them, and then again load them onto a new vehicle or ship .     Suppose you mailed a package from a small town to a distant country. Your package may travel to a big city's airport, get transshipped onto a larger plane, and then reach another airport where it's loaded onto a truck. The ...

Multimodal vs. Intermodal Transport. What is the Difference?

  Intermodal and multimodal transport are two models used in the shipping industry. Intermodal transport involves the movement of goods using multiple modes of transportation - truck, rail, plane, ship - under separate contracts for each mode. On the other hand, multimodal transport also uses multiple modes of transportation but under a single contract, with one carrier responsible for the entire journey.     Intermodal Transport     Intermodal transport involves goods being shipped using a sequence of various transportation modes - such as truck, rail, aircraft , and sea vessels - arranged through individual contracts for each leg of the journey. This strategy originated in 18th-century England and was standardized in the 1950s . The key advantage of intermodal transportation is that it reduces the amount of cargo handled during a trip, thereby reducing costs and making it more eco-friendly.     Multimodal Transport     Multimodal transpor...