July 25, 2024

Transloading Basics Explained for the Modern Shipper

The logistics landscape is continually evolving, especially with the increasing demand for scalable shipping solutions. According to the CEIC Data on United States Total Imports Growth, “total imports grew 5.7% YoY in May 2024, compared with a decrease of 3.7% YoY in the previous month.”  This growth highlights the necessity for advanced logistics solutions such as transloading to ensure timely and cost-effective delivery of goods. The surge in import activity necessitates increased transloading expertise to manage the heightened activity near ports and core ramps, ensuring efficient handling and distribution of cargo. Shippers need to understand what transloading really means, its benefits and risks, and a few steps for leveraging it properly. 

What is transloading?

Transloading cargo occurs upon delivery of a shipment and is the process of moving from one mode of transportation to a different method. For example, an ocean shipment arrives, the containers are picked up at the port and taken to a local warehouse, the contents of the containers are transloaded (unloaded and loaded) to a truck or several trucks for final mile delivery to distibrution centers. Each transload represents yet another opportunity for error; however, proper care and handling, as well as thorough planning, can reduce this risk in the transloading process.

In general, transloading occurs when one form of transportation can not be used for the entire delivery of the cargo and the contents of the containers need to be distributed to several locations by truck for final delivery.

In the majority of cases, for shipping requirements, the transloading process usually takes place at a warehouse, i.e., a transload warehouse facility using loading equipment suitable for cargo handling.

N.B. The term transloading is frequently interchanged with the terminology 'cross-dock. This is dependent if the goods are stored, sorted, or consolidated on the dock of a warehouse before delivery to the final destination. Both a cross-dock or a transloading service can enhance your speed to market, particularly in 3PL logistics warehousing in Southern California.

When a shipment is going to multiple locations, a “transload fee” is applied that covers the labor for de-consolidation at the warehouse, palletizing the freight and loading it into the trucks for final delivery.

Transloading in logistics is crucial for a seamless supply chain transloading operation and offers additional benefits within your supply chain strategy, including:

• Reducing transportation costs by optimizing shipment routes.
• Minimizing storage delays  and speeding up delivery processes.
• Increasing flexibility in transportation methods and options.
• Enhancing inventory management and reducing storage costs.
• Improving supply chain efficiency with better resource allocation.
• Mitigating risks associated with long-distance shipping.
• Expanding market reach by facilitating access to multiple destinations.
   

There are several reasons why your cargo might be transloaded

Transloading is often utilized when cargo arrives at a congested port and needs to be quickly moved to avoid storage fees. For example, a shipment of electronics might be unloaded from a container ship, transferred to a warehouse for sorting, and then loaded onto trucks for expedited delivery to various retail locations.

• If your shipment travels a long way from the destination via truck, it may need to be transloaded to avoid costly chassis and demurrage charges, moving the shipment from one mode of transportation to another to save cost. Intermodal transport could be an option for you.
• We offer CFS (container freight services) to our clients to help with expediting the needed material for their production. The other materials on board the container can move via deferred service.
• Some SSL are requiring that their containers cannot go farther than the port of arrival.

The Transload Journey

Combining multiple transportation methods to create transloads provides shippers cost savings, flexibility, and the opportunity to expand business and market reach, moving freight where it needs to be! Here’s what that typically entails:

• The shipment is picked up from its origin by truck to a transload facility.
• From there, we load the shipment onto a railcar.
• Then, we move the shipment by rail car to a transload facility near its destination.
• Next, we unload the shipment from the railcar.
• Finally, we transfer the shipment to its destination by truck.

Transloading in the United States

In the United States, transloading is a frequent exercise carried out by a logistics provider when ships call to port with containers full of cargo. It facilitates the transportation of goods to different states and locations throughout the country. 

With alternative routings via our transloading facilities to provide cost savings to our clients, Crane Worldwide Logistics has transloading warehouse capabilities at many locations, including Savannah, Houston, Newark, Seattle, and Long Beach.

Get on Board With Transloading Solutions Via Crane Worldwide Logistics

Port congestion is increasingly adding significant U.S. supply chain delays for our clients. By investing in our transload service, our goal is to provide the best service possible. Ultimately, we work to keep supply chains moving and ensure your products reach their final destination in a timely manner. Do you have the most efficient routing for your shipments? Do you need cost effective U.S. transloading services?