| |
Advantages |
Disadvantages |
| Importers |
Reduction of unit transport costs (three maritime
40 footer containers into two domestic 53 footers).
Added-value
activities (sorting, packing, labeling, etc.).
Routing flexibility
through postponement. |
Transloading costs.
Loss of at least one
day of inland transit time.
Possible shortage of domestic
containers.
Not all cargo suitable.
Reconciling different
container loads (additional delays).
Risk of damage or theft
of cargo during transloading. |
| Maritime shipping |
Limit repositioning of empty containers.
Higher asset utilization (faster container turnover). |
Risk of container damage.
Less equipment
available inland for exports. |
Source: adapted from The Tioga Group (2008) Containerized Intermodal
Goods Movement Assessment, North American Logistics Chain, Transportation
Issues and Trends.
Advantages and Disadvantages of Transloading
Transloading conveys a number of advantages to its users, but also
has a few disadvantages:
- Importers. An important benefit for importers is the
reduction of unit transport costs per TEU if the contents of maritime
containers are transloaded into a lesser number of domestic containers.
A common ratio in North America is putting the contents of three
maritime containers into two domestic containers. This conveys a
notable advantage in terms of haul and intermodal costs (number
of lifts). There is also the possibility to perform a series of
added value activities at the same time to insure customization
and final preparation for retail. Additionally, transloading offers
the opportunity to reassess the final destination of a load in view
of changing regional market conditions. There are also some drawbacks
for transloading, particularly its associated costs and time delays
(at least one day) since it essentially represents an additional
load break along the supply chain. Transloading also assumes the
availability of domestic containers, which can be problematic if
trade flows are imbalanced for the concerned port terminal. It should
also be considered that not all cargo is suitable for transloading.
For instance, if the goods have a high density the capacity of domestic
containers cannot be fully utilized. Last, transloading involves
a risk of damaging the cargo as well as potential theft. It is
therefore not suitable for high value shipments.
- Maritime shipping. Maritime shipping companies also benefit
from transloading since it reduces the repositioning of empty containers
from inland locations. The outcome is a higher usage rate of maritime
container assets through faster turnovers. This is particularly
important if trade flows are imbalanced. There is however a risk
of container damage. Paradoxically, transloading makes less maritime
container equipment available inland for exports, which involves
less revenue for return trips.