Problems plague supply chains worldwide, as the stormy seas of port congestion, labor strikes, truck driver shortages, and shifting consumer demands create chaos. Transloading is helping to calm these waters.
Transloading switches goods between different transport modes to ease challenges caused by disruption and keep deliveries on track.
By allowing retailers and suppliers to work with smaller loads, transloading:
When transloading is used, the results can be staggering. For example, when shipments were piling up in port during the pandemic, a major retail chain turned to transloading to navigate the mess.
By moving goods from large cargo ships to smaller trucks and rail systems at nearby logistics hubs, this retailer sped up delivery of seasonal products to distribution centers. This strategic shift kept shelves stocked and helped the company adapt to the fast-changing market.
With customers expecting faster deliveries and more flexibility, transloading is the key that helps companies unlock transport capabilities during disruption and seize growth opportunities amid uncertainty.
The first half of 2024 challenged supply chains, as geopolitical tensions, severe weather, logistics complications, and other obstacles put them to the test.
Disruptions can delay transport, drive up costs, and lead to product shortages. What’s more, the interconnected nature of global supply chains means a disturbance in one region can have cascading effects worldwide.
Media reports show global ocean shipments in Q2 2024 took an average of 66 days from booking to port clearance, an eight-day increase from the previous year. And disruption is largely to blame.
Let’s examine common disruptions that today’s supply chains face.
Companies must be prepared to navigate these challenges. A preplanned transloading strategy can make a supply chain more agile, enabling companies to pivot quickly, reduce downtime, and keep customers satisfied, even during disruption.
The Council of Supply Chain Management Professionals defines transloading as “the transfer of goods from one transportation mode to another during the journey from the manufacturer to the end consumer. This can involve moving products from a truck to a train or from a ship to a truck as part of the shipping process. “
Transloading occurs when a shipment requires a change in transportation methods to reach its destination. For example, if a shipping container starts its journey by rail but cannot finish it that way, it may be transferred to a truck to reach its final destination.
However, transloading isn't restricted to just rail and truck transport; it can also include planes and ocean freight vessels. A shipment on an ocean vessel may undergo transfers in port, moving from a train to a plane, to reach its intended location.
Though transloading transfers goods from one mode of transportation to another, it is not the same thing as cross docking or intermodal, which are actually vastly different methods of moving goods from Point A to Point B.
Transloading involves using specialized facilities to prepare, store, and transfer shipments between different modes of transportation. Cross docking transfers cargo directly from inbound trucks to outbound trucks with minimal storage. Intermodal transport keeps freight remains in its original container and transfers the container between different modes of transportation.
Here’s a basic overview of how transloading can work:
o Pumps are used for liquids.
o Cranes for heavy or bulk items.
o Forklifts for pallets or boxed goods.
o The choice of railcar also varies, with options including boxcars for general cargo, tank cars for liquids, or flatcars for large, heavy items.
Transloading enhances supply chain agility by allowing businesses to quickly adapt to changes in demand, shipping routes, or inventory levels. This flexibility can improve service levels and competitiveness.
Transloading also increases capacity without infrastructure investment. Companies can scale operations and increase throughput by using existing facilities and equipment.
Shipment consolidation is another advantage of transloading. Combining multiple smaller shipments into a single larger load lowers transportation costs, reduces the number of trips required, and reduces a company’s carbon footprint.
Transloading also reduces operational costs by optimizing transportation routes and using cost-effective transport modes. Quick transfer of goods between modes also enhances logistics efficiency.
Implementing a transloading strategy into the supply chain can enhance efficiency and flexibility. Here are some key tips to ensure a successful integration:
Following these tips helps companies implement a transloading strategy that enhances supply chain efficiency and adaptability, improves service levels and saves money.
To achieve supply chain optimization, cost reduction, and increased efficiency, a reliable transloading provider is essential.
The first aspect to evaluate in a transloading company is their industry experience and expertise. A company with a solid history will possess the skills and knowledge necessary to manage cargo effectively and safely. Look for established companies with a track record of reliability and professionalism.
Leading transloading companies also offer a wide range of customizable services to meet unique needs. These services may include warehousing, cross-docking, inventory management, and transportation logistics.
The location and quality of facilities are also vital considerations. Ideally, transloading companies should be near key transportation hubs to minimize transit times and costs. Well-maintained facilities equipped with the latest technology ensure safe cargo handling. The right provider also can accommodate various types of cargo, such as bulk, oversized, or hazardous materials.
Prioritize transloading companies using advanced technology for cargo tracking and management. Features like real-time tracking, automated inventory systems, and sophisticated communication tools can greatly improve the clarity and efficiency of the transloading process.
The right partner also complies with safety standards and boasts a solid safety history. The provide thorough staff training, maintain their equipment, and have detailed safety procedures in place. This transloading provider also understands the legal requirements for transporting diverse cargo and can secure all necessary documentation and permits.
Finally, opt for a provider that prioritizes communication and is attentive to the company’s needs. They should provide timely updates on cargo status and be easily reachable to address any questions.
By selecting AN Deringer as your transshipping partner, you can be confident that your shipments will be delivered to their intended location, even in the face of disruptions.
CTA: Looking to streamline your supply chain? Explore how Deringer’s logistic services can help keep your shipments moving efficiently during disruption.