Importance of International Container Transshipment Terminals

Significance of international container transshipment terminals

International container transhipment terminals are located within port premises to facilitate the transfer of shipping containers between vessels or other modes of transport. When a direct route is not available for goods to reach their destination, transhipment enables the transfer between different modes of transport or between vessels, ensuring efficient movement of goods. Let’s learn more about international container transhipment terminals.

What do you mean by transhipment?

Transhipment is the transfer of goods from one mode of transport to another during transit to allow access to various routes. The transportation industry works on four primary transit modes: trains, trucks, ships, and planes. In international shipping, the long-distance transport of cargo from one place to another often requires changes in the mode of transport. Goods loaded inside different types of shipping containers are transferred from one mode of transport to another to access remote locations and provide door-to-door service. This method of shipping goods by changing between two or more modes of transport is known as transhipment.

Shippers can switch between trains, trucks, planes, and ships based on location between the point of origin and the final destination. This transfer of cargo containers typically occurs at intermediate points such as shipping ports, airports, or terminals. Here, the cargo is temporarily unloaded from one mode of transport, such as a ship, plane, or truck, from where it can be loaded onto another designated mode of transport to reach its final destination. Transhipment in shipping is an integral part of the logistics process as it allows shippers to easily and cost-effectively ship goods to the importers. Freight forwarding and 4PL service providers help ease shippers transport process. 

In maritime shipping, container terminals act as transportation hubs for goods. Let’s learn more about how container terminals are used in shipping.

Use of container terminal

Container terminals or ports are maritime infrastructures built to facilitate the containerization and logistics for inbound and outbound shipping containers. They are essential components of maritime shipping that allow the easy movement of containers in and out of the ship. Let’s learn more about the uses of container terminals.

  1. Cargo handling – Port personnel are responsible for managing the maritime resources in the port to effectively handle cargo. For this purpose, container terminals are equipped with specialized infrastructure and equipment to efficiently handle different types of containers. Container terminals load and unload cargo before moving it to another mode of transport.
  2. Temporary storage – Shipping containers awaiting transfer or distribution are temporarily stored on container terminals by allocating spaces for placement and stacking. Shippers also prefer to use inland container depots for this purpose, as they help reduce port fees. 
  3. Intermodal connectivity – Intermodal transportation is the movement of goods between different modes of transportation, such as ships, trucks, and trains. Container terminals benefit shippers by offering a platform that boosts intermodal connectivity by acting as a bridge between the port and the hinterland. 
  4. Transhipment – If the goods need to change vessels to reach their destination, container terminals act as transhipment hubs. They play a crucial role in transhipment operations, allowing cargo to be transferred between different types of ships in various sizes. Cargo from various sources can be consolidated, sorted, and redistributed to other designated vessels for final transportation.

Benefits of container terminals

Container terminals have numerous benefits contributing to global trade and logistics operations’ efficiency, reliability, and cost-effectiveness. The advantages of container terminals are as follows-

  1. Enhances connectivity – Container terminals are connected to highways and railways to facilitate truck and railroad transportation. This provides connectivity between maritime routes and inland transportation networks, enabling seamless cargo transfer between different modes of transportation. It also enhances connectivity between ports, hinterland regions, and major economic centres, facilitating trade and economic growth.
  2. Flexibility in shipping – Container terminals facilitate transhipment and assist shippers in the flexible transportation of goods by switching between modes of transport. This allows goods to be moved to places without direct routes between the origin and destination.
  3. Cost savings – Container terminals help reduce transportation costs by achieving economies of scale and improving operational efficiency. Consolidating cargo at transhipment hubs, minimizing vessel and vehicle idle time, and optimizing container utilization contribute to cost savings for shipping lines, freight forwarders, and shippers.
  4. Efficient handling – From standardized containers to specialized shipping containers, container terminals have all the necessary equipment for handling. Vehicles such as forklifts and cranes, machines, equipment and workforce, and container terminals are all required assets to effectively load, unload, and store containers. This helps ensure the safety of goods and containers.

What are international container transhipment terminals?

International container transhipment terminals are nothing but container terminals inside shipping ports used for transhipment or international movement of goods. These terminals are strategically located near highways and railways to allow seamless movement of goods to remote areas. Even if the goods are meant to be loaded from a large ship to a small vessel or vice versa, container terminals act as storage facilities. Goods inside shipping containers are unloaded from one ship and transferred to the container terminal using vehicles. Technologies in shipping help place containers inside the container terminal to allow easy retrieval. Maritime resources can also be tracked inside the container terminal for efficient allocation. Let us learn more about the importance of international container transhipment terminals in shipping.

Importance of International Container Transshipment Terminals

The primary function of international container transhipment terminals is to consolidate cargo from various origins onto larger vessels bound for distant destinations or to distribute cargo from large vessels onto smaller vessels serving regional or local ports. This process allows shipping lines to optimize vessel deployment and routing strategies, achieve economies of scale, and minimize transit times.

These terminals also provide comprehensive services, including customs clearance, documentation processing, and cargo tracking, to ensure smooth operations. International container transshipment terminals are significant because they can enhance connectivity between shipping routes, optimize port utilization, reduce transportation costs, and facilitate global trade. By serving as transfer points for cargo between vessels of various sizes and origins, these terminals play a crucial role in supporting the efficiency and effectiveness of maritime transportation networks, ultimately contributing to the growth and prosperity of economies worldwide.

These are a few benefits of an international container transshipment terminal, which allows exporters and importers worldwide to seamlessly carry out trade.

LOTUS Containers is a shipping container service provider that allows traders to buy shipping containers in different sizes and types. Our shipping containers are suitable for transhipment and maritime transportation.