Transloading could completely revolutionize the way you handle your shipments. So if you’ve been missing out on this beneficial shipping service, here’s everything you need to know to get started with an experienced shipping provider like RPM:
What Is Transloading?
Transloading is the process of loading and unloading freight between modes of transport. Most freight utilizes intermodal shipping to get from one place to another, which involves transferring freight from one mode of transport like a cargo ship to another like a semi-truck.
Why Transloading Is Important
Transloading is an essential component of the shipping process that keeps shipments moving. Without transloading, shipments would get stuck at different points in the shipping process — which wastes money and could potentially waste or otherwise damage products.
Let’s dive deeper into some of the benefits of transloading to provide you with the full picture:
- Save Time: Perhaps one of the biggest benefits of transloading is that it can save you a lot of time. And in a world where customers tend to expect fast and free two-day shipping, time is really of the essence.
- Reserve Capacity: It’s no secret that the transportation industry is dealing with a lot of issues — from container shortages to truck driver shortages — that can wreak havoc on your shipping operations. However, transloading services can help you reduce lead time and get creative with your shipping.
- Increase Flexibility: When you get creative with your shipping by using transloading, you have more flexibility to use a number of different shipping methods to create a process that works for your shipping time frames and budget.
- Gain Storage: When transloading is combined with cross-docking, it eliminates the need for extra storage, which can quickly get expensive. Just make sure that your containers keep moving to avoid incurring per diem fees that can be just as expensive as traditional storage fees — if not more so.
Essentially, transloading keeps supply chains fully operational, efficient, and effective.
What Are Deconsolidation and Reconsolidation?
When discussing transloading, you may also hear the terms deconsolidation and reconsolidation. But what do they mean, and how do they relate to transloading?
Deconsolidation refers to the process of breaking down a unit of freight into smaller units all the way down to the piece-part level. Reconsolidation refers to the process of combining several smaller units of freight to create larger units that fill up an entire truckload.
For example, let’s say that a computer is being shipped from the manufacturer in China to a retail store in Los Angeles, California. Obviously, this journey would require transloading at some point, as well as deconsolidation and reconsolidation.
In this case, the computer would be deconsolidated from the other units in the shipment at the port in Los Angeles before being reconsolidated with other unrelated items that are going to the same store. These could include gaming systems, headphones, mobile phones, televisions, etc.
Transloading Fees and Per Diems
Transloading, in addition to both deconsolidation and reconsolidation, requires a lot of work. As a result, transportation companies may charge transloading fees to cover the cost of labor that goes into these steps. At the same time, transloading fees are extremely worthwhile for shippers who are looking for an efficient and effective shipping process.
Per diem fees are charged when transloading services are unavailable, and a shipping container has to wait before it can be loaded, unloaded, deconsolidated, or reconsolidated. These per diem fees are charged to cover the cost of an out-of-commission shipping container which can be incredibly costly for transportation providers.
Per diem fees vary by provider, but generally speaking, you can expect to pay between $50 to $100 per day. This might not seem like a lot, but if the container is sitting for several days, it can add up quickly.
How To Ease Transloading Risk With RPM
While transloading is important, it does come with risk. Theoretically, the more that items are handled during shipment, the higher the risk of damage. However, you’re able to mitigate much of this risk by working with an experienced and reputable transportation provider like RPM.
RPM has over 10 years of experience in the shipping industry, during which time it has built a network of over 40,000 carriers who are fully vetted, licensed, and insured. These carriers have the training and experience needed to safely transfer and transfer your items.
How Can Transloading Help You
The benefits of transloading definitely outweigh the risks. For starters, transloading can help you ship your items more efficiently — meeting or even exceeding customer expectations as a result.
Additionally, transloading can help you ship your items more affordably — incorporating different modes of transportation as needed. Finally, transloading helps you avoid any additional fees and other charges that you may incur due to shipping delays or shipping issues.
What to Do Next
Based on the benefits of transloading, this is definitely something that you want to start incorporating into your shipping processes as soon as possible. So what should you do next? You should start by reaching out to transportation providers that offer transloading.
RPM, for example, is a top logistics provider in vehicle and freight shipping that handles thousands of shipments a day. RPM offers a whole host of different shipping services to meet your needs, including less-than-truckload shipping (LTL), full truckload shipping (FTL), expedited shipping, cross-border shipping, intermodal shipping, consolidation shipping, and drayage.
RPM also offers several different modes of transportation depending on your needs, including dry vans, flatbeds, reefer, bulk, dump, specialized, and hopper. RPM works with clients from a variety of different industries and has drivers available for industries with specialized shipping needs like food and beverage, agriculture, and chemicals.
Transloading FAQs
Let’s answer some of your lingering questions about transloading by covering some FAQs:
How Is Transloading Different From Internal Shipping?
At first glance, transloading may sound quite similar to intermodal shipping. However, intermodal shipping refers to shipping that utilizes more than one mode of transportation, be it ground transport, rail transport, sea transport, or air transport.
On the other hand, transloading refers to the process of actually loading shipments from one mode of transport to another. Essentially, transloading is a key component of intermodal shipping that keeps loads moving.
What Is the Difference Between Transloading and Cross-Docking?
Cross-docking effectively eliminates the storage component in the shipping process, which means that goods are unloaded from one mode of transportation before being directly loaded onto another mode of transportation.
Essentially, cross-docking is an important aspect of transloading that is designed to limit storage fees while simultaneously boosting shipping efficiency since goods aren’t waiting around to be picked up and loaded onto the next mode of transportation.
What Is Bulk Transloading?
Bulk transloading usually involves dry or liquid goods that might be loose or are otherwise not contained in the same way as standard cargo. For example, goods that would fall under the “bulk” category include minerals, fuel, lumber products, plastics, rocks, coal, and food-grade products.
These goods require extra care and attention during the transloading process, and as a result, you can expect to pay more for bulk transloading services compared to standard transloading services.
What Is the Difference Between Transloading and Transshipment?
Transshipment may look identical to transloading, but there are a few key differences. With transshipment, loads are transferred from one mode of transportation to another, but the loads are not directly handled. An example of transshipment includes transferring a shipping container from a cargo ship directly onto a semi-truck without any handling.
Transshipment is ideal as it limits the handling of goods, which prevents damage and boosts efficiency. Considering that a container is handled several times on average throughout its journey, it’s a good idea to cut down handling by using transshipment wherever possible.
Final Thoughts
Now that you’re an expert on transloading, it’s time to get started by contacting a transportation company like RPM. And even if you’re still not a total transloading expert, RPM is — so feel free to contact them with any questions or concerns you have about shipping everything from consumer packaged goods to heavy machinery.
Sources:
Transloading Definition | Investopedia
The Pandemic Economy's Latest Victim? The Lowly Shipping Container | NPR
Warehouse Logistics: Cross-Docking | The Balance Small Business
