October 2021
Maximize Shipment Savings with Transloading
Very little commerce is strictly local in this day and age. Sure, you can probably get some groceries to last you the week at the local farmers market. When it comes to that new flatscreen TV you’re eyeing for the upcoming sports season, though, you’ll be looking at some major travel for the unit. The purchase can happen from the comfort of your own home, but the shipment of your product will likely start all the way across the world.
That’s why it’s so important for modern importers and exporters to understand the benefits of transloading.
When you work with a reputable transloading outfit, you can maximize your shipping savings while satisfying your customers each and every time. It takes some planning, but that’s nothing new for anyone in our industry. Before you get your next big shipment underway, take some time to make sure that you understand the benefits of transloading. If you still have any questions, don’t hesitate to reach out.
What Exactly Is Transloading?
Transloading simply refers to the practice of transferring cargo from one mode of transportation to another. There is a lot of domestic trucking where a shipment of goods may travel from, say, the west coast of the United States to the east coast. However, there is also a lot of shipping involving multiple modes of transportation - sea, air, ground, and any permutations of the three.
When a shipment comes into a port, landed costs begin to add up. Basically, the longer that ship sits at the port, the more money is spent to keep it there. That makes the idea of unloading all of the cargo at the port, and reloading it onto the new mode of transportation, very unappealing. It’s an inefficient, and very expensive, practice. And those are the problems that a transloading service helps importers and exporters to avoid.
How Does Transloading Work?
Let’s go back to the sea-to-land shipping scenario used above. Transloading occurs when the cargo ship pulls into port, and its shipping containers are unloaded from the ship itself and loaded onto the trucks that will take the cargo to the next stop in its journey.
Rather than having a container tied up in a warehouse yard and paying per diems, or having a cargo ship sit there longer than is necessary at the dock, the containers from the ship are kept in near constant motion. Whether being loaded onto a truck or onto the rails, transloading the key differentiator from something like transmodal shipping - keeping the ball rolling without wasting time or money.
Do I Need to Enlist a Transloading Service?
Transloading as described above may sound simple, but that is purely in theory. The logistics of transloading, as well as really maximizing the savings it provides, is a lot more complicated. Working with a company that specializes in transloading really is a requisite if you’re hoping to get the most out of the practice. Transloading on its own is all well and good, but it really shines when combined with complementary services. For instance, you may still need to warehouse some cargo that comes off of a ship, while other cargo is ready for a faster turnaround.
Working with a vendor that can manage your transloading logistics and offer the warehousing you need eliminates the extra step of finding warehousing on your own. There is also the efficiency question. Removing cargo from one container and moving it to another increases the risk of damaging product, but you don’t want things to take too long due to an abundance of caution. A good transloading agency will be able to strip and reload cargo safely and efficiently, further protecting and boosting your profit margins.
Improve Your Reach and Cut Costs with Transloading
Transloading, when managed right, is cost effective. You get to pick and choose different shipping methods and can make strategic decisions based around pricing. Cargo can also be diverted to lower volume ports, allowing for faster delivery. Plus, there is the matter of your shipping reach. When you are limited by a single shipping method, you just don’t have as much accessibility to different areas as you could.
Like so many speciality areas of the importing/exporting industry, transloading is as complex as it is beneficial. Make sure you’re working with a company that can deliver the goods - when it comes to delivering your goods.
Take advantage of transloading in your shipping endeavors.
Don’t hesitate to contact JF Moran with any questions you have regarding transloading, or if you’re looking for a quote. If you’re not utilizing transloading, you’re leaving money on the table - and cargo in the port, containers in the yard, etc. Let us help you make the most of your shipping practices.