The Export Oriented Units (EOU) Scheme is a government initiative in India to promote exports. Amazon Global Selling is a partner of the EOU Scheme, offering Indian businesses access to global customers.
1. As a part of the export logistics process in international trade, transshipment is a crucial
step involving the transfer of goods from one transportation vehicle to another during the
course of a shipment, without goods being stored or processed at an intermediate point. It
ensures that goods are transported efficiently in a cost-effective way to their final
destination, particularly in cases where direct shipping services are not available.
Transshipment is the transfer of shipments or goods from one shipping
vessel to another at an intermediate port or hub in a different country. It
is often used to transport goods to their final destination when direct
service is not available due to a variety of reasons such as shipping routes,
cost, and logistics1
. For instance, when a shipment, that’s originally going
from the US to Japan, is sent via a truck to a nearby port in the US, then
shipped to a port in China, and finally shipped to Japan – it’s called
transshipment.
What are the types of transshipment?
There are two main types of transshipment2
:
What is transshipment?
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What is transshipment?
Transshipment is the transfer of cargo from one shipping vessel to another at an
intermediate port in a different country. In this blog, learn about its process in the blog.
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2. Silent transshipment
In a silent transshipment, the cargo is transferred from one vessel to another without
being reported to the importer. The transfer is kept confidential, and the original vessel
carrying the goods continues to the next port of call.
Active transshipment
It is the opposite of the silent type and involves cargo being reported to the importer or
consignee of the goods. The transfer of cargo is recorded, and the importer or consignee is
informed of the new shipping details.
Transshipment process
Below is the commonly followed transshipment process3
:
Arrival of cargo:
Cargo arrives at the initial port of loading and is checked in for transport.
Loading of cargo:
Cargo is loaded onto the initial vessel for transportation to the transshipment port.
Transportation to transshipment port:
The initial vessel carries cargo to the port, where it is offloaded for transfer to the next
vessel.
Unloading of cargo:
Cargo is offloaded from the initial vessel and is held at the transshipment port for transfer
to the next vessel.
Customs and documentation:
At the transshipment port, customs and other regulatory authorities verify the cargo and
ensure that documentation is in order for the transfer of cargo to the next vessel.
Transfer of cargo:
Cargo is transferred to the next vessel for transportation to its final destination. This can
involve loading it onto a new vessel or moving it to another mode of transportation such
as a truck or plane.
Loading onto the next vessel:
Cargo is loaded onto the next vessel for transport to its final destination.
Transportation to final destination:
The next vessel carries it to the final destination, where it is offloaded and delivered to the
consignee.
Throughout the process, there are various factors that can affect the efficiency of
transportation including logistics, customs requirements, regulations, and security
concerns. It is important for all parties involved in the transport to coordinate effectively
to ensure that the process is completed without any hassles.
Need of transshipment in transportation of
goods
There are several reasons why transshipment may be necessary in the transportation of
goods:
Geographical constraints:
Sometimes, the final destination of a cargo shipment may be inaccessible by ocean or land
transportation. In such cases, cargo must be transshipped to a port or location that is more
3. accessible to the final destination.
Cost savings:
It can often be a more cost-effective option for transporting goods. This is especially true
when the cost of transporting goods directly to their final destination is expensive due to
long distances or logistical challenges.
Security concerns:
In some cases, it may be necessary to transship cargo to avoid risks associated with certain
routes or ports.
Political or legal restrictions:
It may also be necessary to avoid political or legal restrictions on certain types of goods or
shipments. Hence, it is used to bypass trade embargoes or other regulations that restrict
direct shipments.
Logistics:
It can be used to optimize logistics and minimize transportation time, especially in cases
where direct transportation is not possible or practical.
How to track transshipments?
Tracking transshipments can be complex due to the involvement of multiple parties and
the potential for cargo to be transferred between different vessels and locations. Some of
the strategies that can be used to track shipments and ensure that cargo is delivered to its
final destination are:
Use a freight forwarder:
A freight forwarder can handle logistics of transshipment and provide tracking
information throughout the process.
Electronic tracking:
Electronic or e-tracking systems can be used to monitor the movement of cargo and
provide real-time updates on its location and status. This can include GPS tracking, RFID
tags, and other technologies.
Documentation:
Detailed documentation can be used to track transshipments and ensure that all parties
are aware of the location and status. This can include Bill of Lading, customs documents,
and other paperwork.
Communication:
Effective communication between all parties involved in the transshipment process is
essential to track cargo and ensure that it is delivered to its final destination.
It is important to understand the end-to-end export logistics process and plan accordingly
to avoid any hassles during shipment. One of the ways to do this is by opting for third-
party logistics. If you choose to export through e-commerce programs like Amazon Global
Selling, you can also select fulfillment methods offered by Amazon.
Ship across the world easily with
Fulfillment by Amazon (FBA)
You sell, we ship – FBA is as simple as that! To assist sellers, deliver global orders in a
hassle-free and seamless way, Amazon takes care of everything from packing, shipping to
delivery and customer service in the FBA program. With FBA, sellers can focus on their
business expansion in terms of product quality, launches, marketing and more, while
Amazon handles international shipping for them.
4. Free shipping to Amazon Prime members
When you list your products and choose FBA as an international shipping option, they are
made available to Amazon Prime members with a free shipping facility in some of the
countries. A few regions also offer two-day delivery services. Qualified FBA listings are
displayed with a Prime logo to inform the customers that Amazon takes care of the
packing, delivery, customer service, and returns.
A trusted logistics partner
Along with assisting you to sell your products in international marketplaces, Amazon also
provides support so you can ship internationally without any hassles. Through FBA, your
customers can contact Amazon support via phone or email anytime for resolution or
queries. Amazon will help your customers on your behalf. Fast deliveries, 24/7 support,
easy pickup, and returns facilitated by FBA has made customers trust the shipping service,
this impacting their customers’ buying experience in a positive way.
More focus on scaling your business
With Amazon handling logistics on your behalf, it becomes easy for you as a global seller
to focus on expansion of your exports, product quality and more. This will help you in easy
inventory management.
Cost efficient
FBA charges on a “Pay-per-fulfillment” basis, which implies that you will be charged only
for the storage space you need and the orders they fulfill. The shipping cost is included in
your fees, and your Prime customers even get free shipping and faster delivery options at
no added cost.
Cross border shipping has always been a challenge for exporters, especially those who are
just starting off their businesses. It involves engaging with multiple carriers for each
shipment, negotiating rates and service levels, understanding compliance, undergoing
credit checks, tracking shipments and payments across carriers. SEND – a new logistics
solution by Amazon addresses this by allowing exporters end-to-end access to a hassle-
free logistics solution at competitive rates.
Explore Amazon SEND
To export from India, register with Amazon Global Selling in just 15 minutes by sharing a
few KYC documents (identity proof, address proof and credit card). With over 300 million
customers globally, you can leverage Amazon’s global scale across 18 global marketplaces
in 200+ countries and territories.
Frequently Asked Questions
What is the role of transshipment?
What are the advantages of transshipment?
What is the difference between direct shipment and transshipment?
What is the transshipment time?
What are the types of transshipment problems?
5. How does a transshipment lead to shipping delays?
Published on February 23, 2023.
Sources:
1. https://www.shippingandfreightresource.com/what-is-transhipment/
2. https://www.sevenseasworldwide.com/need-help/how-does-international-shipping-work/what-is-a-transhipment/
3. https://www.container-xchange.com/blog/transshipment/
4. https://blue-whale.in/logistics/transshipment/
5. https://www.cargoflip.com/post/how-to-track-shipping-containers
6. https://fresatechnologies.com/wp-content/uploads/2020/02/Transshipment.pdf
7. https://www.dripcapital.com/en-in/resources/blog/transshipment
8. https://www.container-xchange.com/blog/transshipment/
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*Map not to scale. The map has been used for design and representational purpose only, it does not depict the geographical boundaries of the country. These do not conform to
the external boundaries of India recognized by the Survey of India.
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