What Is Transshipment and How Does It Work in Logistics?

What is transshipment in logistics?

Transshipment means moving goods to an intermediate transfer point and then on to the destination, without the goods going directly to the recipient. In practice, the shipment passes through one or more points, such as a port, terminal or transshipment hub, where it changes the means of transport within the same transport route.

Intermediate handling

Intermediate handling takes place mainly in logistics centers and transport hubs, where goods are sorted, consolidated (cargo consolidation) and sent on for further distribution. These operations make carriage more efficient, reduce transportation costs and streamline global shipments. Understanding this process is fundamental for companies working in freight forwarding, logistics and international transport.

Transloading vs. transshipment: the key differences

Transloading is the transfer of the goods themselves from one unit or means of transport to another, usually when the mode of transport changes, for example unloading a sea container and loading the goods onto a truck trailer or into a railcar. Transshipment is the transfer of cargo or a whole container at an intermediate point on the route, often within the same mode of transport, for example from an ocean vessel to a smaller feeder vessel at a hub port.

Cost optimization through consolidation

Transshipment is also used to consolidate smaller shipments into larger batches (cargo consolidation) or, conversely, to split large deliveries into smaller container units. This helps companies reduce transportation costs and make better use of cargo space. The process often takes place at transshipment terminals and in customs zones.

Transshipment is a legal and widely used part of world trade. Customs authorities do, however, monitor cases of so-called illegal transshipment, used to evade customs duties or trade restrictions or to disguise the real origin of goods. That is why transparent documentation and correct identification of the origin and destination of a shipment are crucial in international trade, just as they are for goods covered by national transport monitoring. You can read more about this in our article on the SENT system.

Who is responsible for organizing transport, customs clearance and transport documents also follows from the transport management responsibility agreed between the parties.

Types of cargo handling in transport

Modern logistics uses different transshipment methods adapted to the type of cargo, infrastructure and supply chain requirements. The choice of the right solution affects delivery time, operating costs and the efficiency of the whole process. The method also depends on the transport model, and you can find an overview of the types of international road transport in a separate article.

Cross-docking as fast cargo handling

Cross-docking is a handling method in which goods are passed almost immediately to the next means of transport, without being stored. Loads are quickly sorted, consolidated or split and then sent to recipients. This approach reduces transport costs and shortens delivery times, and it is widely used in retail, the courier industry and the distribution of products that require fast delivery.

Consolidation handling

Consolidation handling combines cargo transfer with order picking. Goods from different suppliers are sorted and grouped according to recipients' requirements and then sent as one consolidated delivery. This method is used, among others, in trade, construction and the distribution of spare parts.

Vertical and horizontal handling

Vertical handling dominates in container ports and intermodal terminals, where cranes, hoists and gantry cranes are used to handle heavy container units. Horizontal handling uses forklifts, tractors or conveyor systems and is typical of warehouses and cross-docking centers. Modern terminals often combine both methods.

Transshipment hubs: where does cargo transfer take place?

A transshipment hub is a strategic point in the global supply chain where cargo is transferred between different modes of transport: a port, an intermodal terminal, a distribution center or a cargo airport.

The world's most important transshipment ports

Port of Singapore is considered the largest transshipment hub, with transshipment operations making up a large share of its volume. In 2025, the port posted a record 44.7 million TEU.

However, the leader in total container throughput remains the Port of Shanghai: in 2025 it handled about 55.1 million TEU (up 6.9% year on year), ranking first in the global container throughput ranking for the sixteenth year in a row.

The ports of Rotterdam and Hong Kong also play an important role.

Container handling in Polish ports

Polish ports are strengthening their position on the map of European container logistics. A key role is played by the Port of Gdańsk with the Baltic Hub terminal, the largest container terminal on the Baltic Sea. The ports of Szczecin and Świnoujście are also developing rapidly, expanding their capacity to handle containers and bulk cargo.

Intermodal terminals and container handling

Intermodal terminals make it possible to transfer cargo between rail, road and sea transport without opening the load unit, which speeds up operations and reduces the risk of damage. According to Statistics Poland (GUS), 40 active terminals operated in Poland in 2024 (4 seaports and 36 inland).

The terminal in Małaszewicze is of particular importance as one of the key transfer points on the New Silk Road. Baltic Hub in Gdańsk also plays an important role as the largest container terminal in the Baltic Sea region, handling the world's largest ships and distributing containers to inland terminals.

Distribution centers in the handling process

Distribution centers ensure the smooth flow of goods between manufacturers, warehouses and end customers. They are usually located close to major transport routes, ports, airports and intermodal terminals. Their defining feature is keeping storage time to a minimum while maintaining high stock rotation, often using cross-docking and cargo consolidation.

Cargo airports as transshipment hubs

Cargo airports allow fast transfer of goods between domestic and international connections. In Poland, the largest cargo airport is still Warsaw Chopin Airport, while Rzeszów-Jasionka Airport is becoming increasingly important. In Europe, the key hubs are Frankfurt, Paris CDG and Amsterdam, and goods from Poland are delivered there by Road Feeder Service. Dubai Airport's cargo hub also plays an important role, connecting cargo between Europe, Asia and Africa.

How does transshipment affect delivery time and transport costs?

Each additional transfer point extends transport time by the time needed for handling and waiting for the next connection. In sea transport, transshipment can add several days to transit time, while in air transport it usually adds hours, depending on terminal capacity.

At the same time, transshipment can lower the unit cost of a shipment: consolidating cargo makes better use of container space and spreads transport costs across more shippers. On the other hand, each transshipment terminal generates additional costs for cargo handling, storage and port fees. The final impact on the transport price depends on the nature of the shipment, the type of cargo and the chosen route.

Who can help settle transshipment costs in your transport company?

Settling transshipment costs means more than one terminal invoice. It usually involves foreign VAT, port fees in different currencies, storage costs and extra hours and allowances for drivers waiting for the next leg of the route.

Mastering this process in-house, with a growing number of routes and transshipment points, can take your accounting team more time than organizing the transport itself. The Evotax team settles international transport costs every day, including foreign VAT, VAT refunds, leasing and road tolls in many currencies, so you don't have to explain the specifics of the transport and logistics sector to us from scratch. You can find details of our services for transport companies, including the settlement of transshipment costs and road tolls, on the service page.

An extra stop at a port or terminal is real waiting time for the driver, which has to be settled correctly, taking into account allowances and tachograph data. We handle drivers' working time settlements in line with current regulations and the Mobility Package, so that delays caused by transshipment don't turn into payroll errors.

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Risk and operational flexibility of transshipment

Every transfer of cargo between means of transport increases the risk of damage, loss or misidentification of the shipment, especially for fragile goods, food products and electronics. This risk can, however, be reduced with modern shipment tracking systems, process automation and proper procedures at ports and terminals.

Despite the additional handling, transshipment makes the whole transport process more flexible: it allows rerouting in the event of delays, breakdowns or traffic disruptions and better use of available transport capacity. By dividing carriage into stages, carriers manage the flow of goods more efficiently and reduce empty runs.

What do you need to know about transshipment? Summary

Transshipment is one of the most important processes in international transport and logistics. It makes it possible to combine different modes of transport, streamline the flow of goods and reduce transport costs. Although it can extend delivery time and increase the number of handling operations, it provides greater flexibility and efficiency across the whole supply chain. If your company settles transshipment costs, foreign VAT or drivers' working time on routes with transshipment points, it is worth entrusting these settlements to specialists who work with the transport and logistics sector every day. If transshipment in your company is organized by a freight forwarding department, see how Evotax handles accounting and HR for freight forwarding companies.