The Role of Transloading in Logistics

Multi-coloured freight shipping containers

There are many ways to ship products and commodities around the world, each with its own advantages. Shipping by air is fast, shipping by sea is cost-effective, and shipping by rail is necessary to bring goods inland.

Almost all products spend time on multiple modes of transport as they make their way from suppliers to consumers. This makes transloading freight a crucial part of bringing goods to market.

Transloading is important for the final leg of shipping. While shipping by rail is efficient, trains cannot deliver everywhere. The last leg of delivery is usually over the road, on a truck.

Why Is Transloading so Crucial?

Shipping costs are the driver of logistics expenses for many businesses. The best way to maximize efficiency is to combine multiple shipping modes, leveraging the strengths of each one. To support those efforts, transload facilities should be tight operations where teams can transfer products efficiently from one mode of transit to another to put them as close to the factory, processor, or retailer as possible.

Transloading freight solutions make manufacturing, processing, and selling more efficient, improving the bottom line in three ways:

Simplified Operations
Transloading means all your freight arrives by a single mode of transport in the final leg. The receiving party can expect a full shipment in a truck, for example, instead of separate deliveries by truck and plane.

Reduced Shipping Costs
Transloading lets you choose the least expensive mode at different stages of the journey from the supplier to your site.

Lower Inventory
When your shipments arrive in smaller loads, you can carry lower inventory at a time instead of having to put surplus goods in storage.

Unless you’re located near a rail line or shipping port, transloading makes good business sense. While every shipping mode has its own advantages and drawbacks, trucking is the only one that makes sense for most destinations that aren’t on a country’s coastline. By using the least expensive mode for each different leg of the journey, transloading lets you simplify your shipping processes and expand your operations.

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