Growth in international trade and online commerce in the last two decades has made transloading an increasingly common strategy in the transportation of goods. Transloading is the process of moving a shipment from one mode of transport to another. Transloaded goods may change delivery modes several times but still be considered the same shipment. For example, moving a crate of surgical equipment from an ocean container to rail and then truck transport. Most often, transloading involves picking up a container from the port, bringing it to a warehouse, unloading it, and re-loading the cargo into a rail freight wagon or truck for final delivery to the customer. Transloading is distinct from transshipment, which always involves an intermediate destination, allowing subsequent trips in the same order to be classified as separate shipments until the goods reach their final destination.
Transloading gives you the best of both worlds by combining economical rail transport with the flexibility of over-the-road trucking. For many businesses, it makes perfect sense to have the flexibility of two or more modes of transportation. Some reasons why your cargo may be transloaded include:
A single rail freight wagon can carry the equivalent of up to four truckloads. Additionally, rail transport is three times more fuel efficient than trucking. With these inherited efficiencies, you spend less on transport while shipping heavier loads farther.
If your shipment travels a long way from the port to the final destination via truck, transloading may help you avoid costly per diem charges. Additionally, when you transload your freight via rail, you have access to an expansive rail network, allowing you to ship more affordably and reach the major markets throughout North America.
Depending on where you are shipping goods, you may also utilize transload facilities in various locations. Some supply chain and logistics companies, like Northfield, have access to a network of transload facilities across North America and can connect you with transloading service providers, no matter where you’re shipping.
Sometimes, your shipment may require delivery to more than one distinct location. In such a case, labor is involved in separating and palletizing the freight at a warehouse and loading it into trucks for final delivery. Besides, shipping containers have to be returned to the ports no matter the shipping distance. Without transloading, you could be paying for the additional truck miles required to return an empty shipping container to the origin port.
Transloading, drayage, and other port logistics services play a critical role in international freight shipment. Given recent surges in transportation costs in 2022, selecting the proper logistics partner for transport logistics has become essential to success. Transloading offers cost benefits, but you must move past the initial monetary considerations, and examine the total third-party logistics package to ensure your service provider is the right choice. Here are a few good tips to consider when choosing a logistics partner that supports transloading:
Capacity to cover your loads: your logistics partner should have access to a network of intermodal freight transport providers at the major ports and import hubs.
Experience: you should ensure that your logistics partner works with the most reliable trucking companies and is knowledgeable on the facility procedures, roadways at the major ports, and best mode of transport for each type of good you are shipping.
Responsiveness: logistics partners should be responsive to calls, rate requests, work order confirmations, and status update requests.
Accurate and transparent billing: a good logistic partner ensures accurate billing, itemized invoices with no surprises, and prompt communication.
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