What is transloading in logistics?

Our world relies on a constant flow of goods, but the journey from factory to store isn’t always a simple A to B. That’s where transloading steps in, a critical junction in the supply chain.

In this article, we unpack the concept of transloading. We’ll explore what it means to move freight from one mode of transportation to another, understand how it is done, and why transloading is crucial for your business.

Transloading: A brief overview

What is transloading?

Transloading is the process of moving goods from one mode of transportation to another during their journey from origin to destination.

The actual transfer happens at dedicated facilities. These facilities are equipped to handle a wide variety of cargo and efficiently move between containers and domestic equipment such as intermodal trailer or parcel truck.

Transloading can move both full container loads (FCL) and less than container loads (LCL).

How is transloading done?

The specific method of transloading depends on the cargo and the facilities available, involving:

• Arrival and unloading: Goods are transferred between vehicles or containers using forklifts, cranes, or conveyor belts.
• Sorting and consolidation: Goods from multiple shipments might be consolidated into a single trailer for onward travel. This consolidation could consist of three containers to two trailers depending upon the product’s weight and volume.
• Reloading: Goods are loaded onto the final mode of transport for delivery to their intended destination.
• Documentation: New paperwork is created reflecting the original container manifest information of the line items transferred to an outbound trailer.

Comparing transloading with similar models

While we won’t go into the deeper details, let’s explore the key difference between each mode of logistics with transloading:

Transloading vs. transshipment

Transloading optimises the physical movement of goods, while transshipment focuses on the overall routing strategy, especially for long ocean journeys. While transloading can handle both FCL and LCL cargo, transshipment primarily involves moving FCL.

Transloading vs. intermodal shipping

Transloading breaks down shipments, sorts the freight, and reloads them for efficient transport (think unpacking and repacking at a rest stop). It handles both FCL and LCL cargo.

Intermodal shipping keeps goods in the same container throughout the journey, using different transport modes (like truck and train) for each leg (think suitcase on a connecting flight). It is mainly used for FCL shipments.

Transloading vs. multimodal shipping

Transloading unpacks and reloads freight for efficient movement (both FCL and LCL). Multimodal keeps goods in the same container across multiple transport modes (mainly FCL).

Transloading vs. cross-docking

The difference between transload and cross-docking is complexity. Both transload and cross-docking can have multiple products arrive in a shipment, the difference lies in how those products are split for destination. Transloading ships to one destination whereas cross docking ships to multiple destinations.

What is the importance of transloading services in logistics?

Transloading plays a vital role in modern logistics by optimising the movement of goods throughout the supply chain. Here’s why it’s crucial:

Flexibility: Transloading facilities can handle various cargo types and sizes while providing maximum flexibility for delivery timelines and destinations. This enables companies to adapt their shipping strategies to their specific needs, even for complex logistics moves.

Speed: Provides a consistent service level with tighter transit standard deviation than a traditional interior point intermodal (IPI) move.

Optimised inventory management: Enables better positioning of our customer’s goods by creating a flexible mechanism to align with customer demand and production.

Cost and efficiency: Through the consolidation of product, transloading reduces the amount of transportation needed by compressing inbound shipments to outbound equipment. It allows companies to leverage the most economical transport mode for each leg of the journey. By utilising the most suitable transport mode at each stage (train, truck, ship), transloading can expedite deliveries while providing more reliability for getting goods to customers faster.

Considerations when transloading

Finding a qualified transload provider: Liability can be decreased by engaging a certified provider with a national or global presence.

Damage risk: Extra handling increases the chance of cargo damage. Delicate products could be subjected to damages if the transload provider does not take necessary precautions.

Inventory management: Requires clear procedures to track goods during transfer.

Is transloading right for your business and shipping needs?

Transloading can be a game-changer for managing your logistics with ease!

Consider transloading if:

• You want to manage the flow of your cargo more effectively and efficiently.
• You frequently ship concentrations of volume to specific ports of entry.
• You deliver to diverse inland locations with varying accessibility (e.g., remote areas).
• Cost reduction is a priority; you can leverage outbound compression in a variety of transportation modes.
• You handle a variety of cargo sizes and types, allowing for consolidation.

At Maersk, we offer a range of warehousing services, including transloading. Explore how our services can streamline your operations and enhance efficiency.