Transshipment

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Last updated: 26 June 2026Published: 27 January 2026

Source: https://www.investopedia.com/terms/t/transshipment.asp

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Definition & Explanation

Shipping lines and freight forwarders rely on transshipment when cargo must change vessels at an intermediate port – a hub – before reaching its final destination. The term refers broadly to the transfer of goods from one vessel or transport mode to another during transit. Major container hubs such as Singapore, Tanjung Pelepas, or Algeciras concentrate cargo from feeder services onto large mainline vessels, extending network reach without direct port calls everywhere. For the shipper, transshipment typically widens routing options but adds transit time and introduces the risk of missed connections or additional handling damage. From a customs perspective, cargo in transshipment generally remains under a transit or bonded procedure at the intermediate port and is not released into free circulation. The term should not be confused with intermodal transport, where a planned mode change – for instance, sea to rail – is a deliberate element of the logistics design.

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