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GLOSSARY

Transshipment

The act of shipping goods to an intermediate destination, then shipping them again to another destination.
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What is Transshipment?

Transshipment is the process of shipping goods or containers to an intermediate destination, then to another destination. 

Transshipment is done for several reasons, including consolidating shipments and avoiding tariffs or quotas. 

Several factors must be considered, including:

  • Availability of transshipment ports,
  • Cost of transshipment,
  • Time required for transshipment.

Transshipment is a complex process, but it can be beneficial to your importing. This service is often necessary when gathering products together from various points in Asia.

Transshipment is a staple in places like Singapore. They act as central hubs for smaller shipments from surrounding countries to consolidate for the final journey to nations like the United States.

Related articles: 

Import Costs From China: Duties, Taxes and Other Fees 

Section 321 Shipments: Can You Say Tax-Free?

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