GlossaryEN1 min readUpdated: Jun 26, 2026

Transshipment Risk

Transshipment risk is the aggregate exposure to loss, damage, or delay that accumulates each time cargo changes vessel, transport mode, or terminal within a supply chain.

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Last updated: 26 June 2026Published: 27 January 2026

Source: https://www.freightos.com/glossary/transshipment/

Category

Logistics Concept

Reading time

1 min

Words

106

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Definition & Explanation

Transshipment risk is the aggregate exposure to loss, damage, or delay that accumulates each time cargo changes vessel, transport mode, or terminal within a supply chain. Each transfer point introduces distinct hazards: physical damage from improper handling, theft, misrouting caused by documentation errors, terminal congestion, and unplanned customs inspections at intermediate nodes. The exposure compounds with every additional leg – a shipment moving from East Asia to a landlocked destination via multiple feeder ports and inland modes carries significantly greater risk than a direct service. Forwarders manage transshipment risk through certified terminal selection, real-time cargo tracking, rigorous document control, and cargo insurance calibrated to the routing.