Transloading in logistics: Is it right for your supply chain?

Your cargo arrives by ship, rail, or truck at a transfer hub, where it is swiftly transferred to another mode of transport to continue its journey. This smooth handover is called transloading – a smart logistics strategy that reduces dwell time at terminals, makes better use of truck space, and keeps shipments flexible for the final delivery leg.

But how exactly does transloading work? And could it be right for your business? Let’s dive in with practical insights, plus a downloadable decision checklist to help you decide.

What is transloading in logistics?

Transloading involves moving freight from one mode of transportation to another (e.g., from ocean containers to trucks or railcars) during its journey. The transfer happens at facilities strategically located near key ports or intermodal hubs.

It’s especially useful when different modes of transport are required to complete a single shipment, such as from ocean shipping to road or rail transport. It supports both Full-Container Load (FCL) and Less-than-Container Load (LCL) shipments, offering versatile options for various goods.

What products and goods are suitable for transloading?

Transloading is suited to handle almost all types of cargo, including:

• Consumer packaged goods (e.g., electronics, apparel)
• Automotive components (e.g., parts, engines, assemblies)
• Construction materials
• Raw Materials (used for manufacturing)

Transloading vs other logistics methods

To better understand the role of transloading in logistics, let’s see how it differs from other common shipping and handling methods:

How does transloading work?

Transloading typically involves three main steps:

1. Inbound cargo arrival:

   Goods arrive at a transloading facility by various modes – such as ocean, rail, or truck –depending on the origin. Ocean containers are often trucked from the port to the facility, while rail or domestic truck shipments may arrive directly.

2. Cargo unloading and sorting:

   At the facility, shipments are unloaded and sorted based on factors like destination, order priority, or delivery routes.

3. Transfer to outbound transport:

   The sorted goods are reloaded onto outbound trucks or trains for the final leg of their journey – whether to a distribution centre, retail location, or end customer.

Transloading: Benefits and challenges explained

Before deciding if transloading works for your supply chain, weigh its advantages and potential drawbacks:

Is transloading right for your business and shipping needs?

Here’s a checklist and downloadable PDF to help you decide whether you should consider transloading.

Consider transloading if you:

• Move high container volumes consistently – typically 800+ annually – allowing you to achieve compression, such as consolidating three inbound containers into two outbound shipments.
• Rely on multiple transport modes (ocean, rail, truck) and need seamless handoffs between them.
• Operate in areas with complex local infrastructure or delivery constraints.
• Handle mixed cargo types or sizes that can benefit from flexible consolidation.
• Serve diverse delivery locations, including metro and hard-to-reach regions.
• Aim to lower long-haul transport and storage costs.
• Need flexible routing and faster turnaround to keep supply chains agile and responsive.

If your operations involve multiple transport modes or widespread delivery points, transloading can offer the flexibility and cost-efficiency you need. At Maersk, our integrated transloading and warehousing services help reduce handoffs, streamline routing, and speed up deliveries – all while simplifying your supply chain.