5 ways to boost ocean transshipment reliability

For businesses transporting their goods by ocean, transshipments can be perceived as an inconvenience with the potential to increase the risk of delays and disruptions. However, there are ways to ensure reliable transshipments. Using the latest facilities and technology, combined with modern approaches to logistics management, transshipments can be smooth, reliable, and part of a robust supply chain for your business.

The definition of a transshipment (sometimes spelled ‘transhipment’) in ocean transport is the process of offloading a container from one vessel and loading it onto another vessel. This occurs when there is no direct connection between origin and destination ports. The transshipment is completed at a port known as a transshipment hub.

Ensuring transshipments are smooth and reliable requires a careful combination of the latest facilities and technology, combined with modern approaches to logistics management.

How reliable transshipments benefit businesses

Reliable transshipments are the backbone of efficient logistics operations, facilitating the smooth movement of goods.

Reliable transshipments are already part of our everyday lives. For example, packages from ecommerce retailers to consumers are successfully transhipped, as are foodstuffs from regional distribution centres (RDCs) to supermarkets.

There are three key ways a reliable transshipment can benefit your business:

5 key elements to improving ocean transshipment reliability

Essentially, reliable ocean transshipments involve the seamless and efficient transfer of cargo between different carriers or ports, minimising delays and ensuring timely delivery to the final destination.

The process of transhipping, like many aspects of supply chain management, is complex. However, the following five elements contribute to near perfect transshipment reliability for ocean transportation.

1. Strategic transshipment hub selection

   Along with schedule reliability, choosing the right ports as transshipment hubs, is crucial to successfully transhipping your cargo. These hubs have the highest levels of productivity and reliability. They are supported by efficient handling processes and meticulous planning and coordination.

   Ideally, transshipment hubs are located at key logistical junctions with the right port connections. The hub needs to accommodate the required capacity, with room to grow when needed.

   The right hub will help ensure smooth cargo transfers and competitive transit times.

2. State-of-the-art infrastructure

   Having the most up to date equipment at the hub is also part of ensuring transshipments happen smoothly. For example, a regularly maintained system of modern cargo handling equipment, including cranes, can help prevent delays and disruptions.

   This infrastructure should also leverage cutting-edge technologies such as digital twins, the Internet of Things (Io) and artificial intelligence (AI). These can significantly improve visibility, along with transshipment efficiency and reliability. For example, having a digital twin (essentially a virtual copy) of the transshipment hubs can help test different processes and layouts to choose the most effective one.

   AI, through machine learning, can also help transshipment run smoothly. For example, it can power berth planning and yard optimisation tools. These offer a detailed overview of the hub operations and support effective, accurate transshipment planning and resource allocation.

3. Strong partnerships

   Strong, collaborative partnerships are key to ensuring containers can be smoothly and successfully transhipped. Having strong partnerships between reliable carriers, port operators, and other strategic partners fosters trust and cooperation across the supply chain network. With open communication and sharing responsibilities, the partners can quickly identify, anticipate, and address challenges and ensure transshipments are executed smoothly.

4. Risk assessment and mitigation

   As explained in relation to technology and partnerships, having a comprehensive picture of potential challenges is important to boost the reliability of transshipments. This should be supported by a fast response plan, which should be quickly activated to minimise any impact on the network.

   To identify and mitigate vulnerabilities, a carrier and port operator can conduct risk assessments. Technology can play a key role in this. For example, with a digital twin different scenarios and solutions can be tested in a virtual environment, which improves the quality of decision-making and planning in the real world.

   In the event that something does go wrong, a fast response plan should be in place and activated to minimise any impact on the network.




5. Continuous improvement

   Staying reliable requires adopting a culture of continuous improvement. This would consist of regular evaluations of transshipment procedures by carriers and port operators to identify opportunities for enhancement and potential pitfalls.

   To ensure the highest levels of productivity and reliability are maintained, processes and plans can be regularly reviewed and refined. Opportunities for investments and upgrades may also be identified. Staying productive and responsive means the transhipment hubs can maintain and, where possible, improve service quality.

    

Setting a new standard for transshipments

For many businesses, transshipments will be an unavoidable part of shipping their goods from A to B. With the right logistics partner, transshipments can contribute positively to the resilience and stability of your supply chain.

With a combination of high-performing transshipment hubs, advanced technologies, solid partnerships, strong risk assessment practices, and a commitment to continuous improvement, transshipments can be smooth, reliable and deliver for your business and supply chains.