Transloading for Shipping: What It Is and Why It’s Used in Logistics
There are many different modes of transportation in the logistics and shipping process. Depending on the location and cost, manufacturers, suppliers, and retailers may utilize multiple modes for a single shipment. The general term for this type of logistics is called transloading. But what is transloading and why is it used?
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What is transloading?
Transloading is the process of transferring a shipment from one mode of transportation to another. It is often used as part of a larger transportation strategy to minimize cost and time. Transloading is most common at cross-docking facilities. It can be used for any type of shipment, including containers, trailers, rail cars, and trucks.
Transload and intermodal transport are different but easy to confuse. In intermodal, goods stay in the same container during shipping. Transload, on the other hand, involves changing containers one or more times during shipping.
Why use transloading as a transportation strategy?
There are several reasons to use transloading as a transportation strategy. These include: reducing shipping costs, consolidating shipments, improving schedule reliability, and avoiding port congestion.
Transloading also reduces the risk of damage or lost shipments, as goods are only handled once. Often, these services are provided by shipping companies, railroads, and trucking companies. These companies typically have their own transload facilities, which may be located at warehouses, distribution centers, or other locations.
For more on this, please review the 5 benefits of transloading later in this article.
How does transloading work?
The method of transloading is very simple, and just simply involves moving material from one mode of transportation to another. However, some subtle requirements exist depending on which types of transportation are involved. The following example illustrates how the process usually works for imported containers:
- A ocean freight boat arrives at the destination port. The port unloads the container and loads it onto a freight truck.
- The freight truck transports the shipping container to a cross-docking warehouse or other transloading warehouse.
- Materials are removed from the original container and loaded into the new freight truck. If the container is floor-loaded, it is removed and palletized before loading.
- The new freight truck makes its way to the destination, often a distribution facility.
- The truck with the container returns to the port where the empty container is cycled back into the return shipping containers for other overseas ventures.
Transloading is also used to consolidate multiple shipments into one. When transloading is used this way, it helps businesses reduce their shipping costs by consolidating. Or vice-versa, to break down a large shipment into smaller units for something like regional deliveries.
At AMS, our Central Texas location is strategic, serving as a pivotal hub that connects trucking routes from Mexico to the northern parts of the United States, and rail lines that span the entire North American continent.
What are the benefits of transloading?
The benefit of transloading becomes clearer as the volume of the movement of goods scales up. By using transloading, businesses can choose the most efficient and cost-effective route for their materials, and sometimes eliminate an extra step in the distribution chain.
Here are the key benefits of transloading that we see in the logistics side of our business:
1. Cost Efficiency
Transloading allows us to reduce transportation costs for our clients significantly. By strategically switching between transport modes—such as from rail to truck—we can capitalize on the strengths of each mode. Rail, for instance, is more cost-effective for long-distance hauling, while trucks offer flexibility and access to local roads for final delivery. This hybrid approach not only cuts down on costs but also reduces handling charges with direct transfers.
2. Speed and Flexibility (Diversification)
In any business, time is always money. Transloading enables us to minimize delays inherent in sticking to a single transport mode. For example, if rail car routes are congested, switching to road transport can save precious time. This flexibility allows us to meet tight delivery schedules, a critical factor for client satisfaction in industries like retail where timing is everything.
3. Reduced Cargo Handling
We always want to minimize cargo handling whenever possible to prevent damage and loss. Transloading is performed using specialized equipment and by trained professionals which ensures that handling is kept to a minimum. This careful management not only preserves the quality of goods but also reduces additional costs associated with damaged goods.
4. Customized Logistics Solutions
There are a lot of businesses that have unique needs and challenges. So in our experience, transloading services can’t always be a one-size-fits-all but are tailored to meet specific requirements. Whether it’s combining cargo from multiple origins or segregating shipments for different destinations, transloading helps our operations to be flexible and responsive to our clients’ needs.
5. Enhanced Reach
Transloading extends the reach of our logistics services, enabling AMS to handle international shipments more efficiently. With our transloading capabilities, international cargo can be seamlessly transferred from ocean ports to rail car or trucks, making the journey to inland destinations more streamlined and cost-effective.
What are some factors to consider when choosing a transload provider?
Businesses should keep several factors in mind when choosing a transloader. First, they should to consider their final destination and ensure that the transloading provider position well for shipping to their final destination. For example, rail transportation rarely lines up with the delivery location and may require additional touch-points.
Second, the different modes of transportation each have their strengths and weaknesses. Rail transport, for example, is well-suited for long-distance shipments. Trucking, on the other hand, is faster and better suited for shorter distances.
Third, businesses need to consider the type of material they are transporting. Some transloading providers specialize in certain types of materials, such as refrigerated goods or hazardous materials.
How can transloading help reduce shipping costs?
The power of transloading to reduce costs simply comes down to enabling a company to pick the right transportation method for them. That’s the whole point of transloading: getting your material on the most effective (whether cheapest, fastest, or most reliable) method of transport.
By using transloading, companies can reduce shipping costs by consolidating multiple shipments into one load, using only one mode of transportation for the entire journey, or by breaking up a large shipment into smaller loads that can be transported more easily and economically. It really all depends on the specific location, material type, timeframe, and other unique requirements of the company.
This is a pallet jack from Harbor Freight
What kind of equipment is needed for transloading?
Transloading operations require specialized equipment to efficiently transfer goods between different modes of transportation, such as from railcars to trucks or from ships to rail. The specific equipment used in transloading facilities can vary depending on the type of cargo handled and the modes of transportation involved. Here’s a look at some of the essential equipment typically used in transloading operations:
1. Forklifts
Forklifts are fundamental to any transloading operation. They are used for moving and stacking pallets, and they vary in size and capacity to handle different weights and types of cargo. Forklifts equipped with different attachments can handle diverse materials, including drums, bags, or even loose materials.
2. Cranes
For heavier or oversized cargo, cranes are necessary. Mobile cranes and gantry cranes are often used at transloading facilities to move containers or large pieces of equipment from ships or railcars onto trucks. Cranes are crucial in ports and rail yards where large-scale cargo movements are common.
3. Conveyors
Conveyors are used to move bulk materials, such as grains, coal, or minerals, from one transport vehicle to another. They can be designed to handle various materials safely and efficiently, minimizing the risk of contamination or spillage.
4. Pallet Jacks
Pallet jacks (like the one shown above) both manual and electric, are used for moving smaller loads within a transloading facility. They are especially useful for quickly relocating palletized goods from one area to another with minimal effort.
5. Container Handlers
Container handlers, such as reach stackers or side loaders, are used to transport shipping containers within a yard or facility. These machines can lift and stack containers, making it easy to organize and store them before further transportation.
6. Scales
Accurate weighing of goods is critical, especially when goods are sold by weight. Scales are used to ensure compliance with shipping regulations and to verify shipment weights for billing purposes.
What are some factors to consider when choosing a transload provider?
Businesses should keep several factors in mind when choosing a transloader. First, they should to consider their final destination and ensure that the transloading provider position well for shipping to their final destination. For example, rail transportation rarely lines up with the delivery location and may require additional touch-points.
Second, the different modes of transportation each have their strengths and weaknesses. Rail transport, for example, is well-suited for long-distance shipments. Trucking, on the other hand, is faster and better suited for shorter distances.
Third, businesses need to consider the type of material they are transporting. Some transloading providers specialize in certain types of materials, such as refrigerated goods or hazardous materials.
How can transloading help reduce shipping costs?
The power of transloading to reduce costs simply comes down to enabling a company to pick the right transportation method for them. That’s the whole point of transloading: getting your material on the most effective (whether cheapest, fastest, or most reliable) method of transport.
By using transloading, companies can reduce shipping costs by consolidating multiple shipments into one load, using only one mode of transportation for the entire journey, or by breaking up a large shipment into smaller loads that can be transported more easily and economically. It really all depends on the specific location, material type, timeframe, and other unique requirements of the company.
Final Thoughts
Transloading is a very popular transportation strategy. Hopefully, this article has helped shed some light on what this processes entails and its benefits. If you’re interested in learning more or need help getting started with transloading or cross-docking, AMS is here to help. We have years of experience helping businesses just like yours streamline their shipping process and reduce costs. Give us a call today and let us show you how we can improve your business’s bottom line.
Looking for more tips to fix warehouse mistakes? Read our article about Warehouse Shipping Mistakes and How to Prevent Them.