Storage and transshipment
Part of the logistics chain is storage and transshipment. Storage means (the name says it all) storing goods. This is usually done in a warehouse. Transshipment means transferring goods from one means of transport to another. Think, for example, of a container being loaded from a ship onto a truck. Or a truck with packages being transferred at a depot to smaller vans that then go past homes.
Transshipment is usually done at terminals, depots, ports, airports or train stations. Goods can sometimes actually be brought together on pallets or in containers, for example. Other times, the opposite is the case and goods are actually distributed again from a container or from the pallet.
Storage
Many transportation companies also offer storage. In addition to a fleet of trucks, they also own a warehouse where goods can be stored. Other companies can rent warehouse space to store their goods for a fee.
When the transport company can then also take care of the complete handling (processing and shipping the stored goods), we speak of fulfillment. This is a big advantage for many companies: both storage and transportation of goods are taken care of by one party. A company can also choose to take care of storage itself. In that case, the company rents or buys its own warehouse and then it has to take care of the processing of the goods itself.
Rent a warehouse yourself or outsource storage?
There are both advantages and disadvantages to outsourcing warehousing. One major advantage is that it is done by a specialized party with experience in logistics. In addition, it is a scalable way of doing business. In fact, if the business grows rapidly, additional storage space can easily be rented.
On the other hand, many business owners do see the advantages of having their own warehouse. They can access their stock directly themselves. This allows them to better control certain things. Think of sending custom orders or the possibility of customers picking up.
In the article on fulfillment, we discuss in more detail the pros and cons of doing it yourself or outsourcing.
Transfer
Transshipment involves transferring goods from one mode of transport to another at a transshipment site. This can take numerous forms. A transshipment site can include:
- A port terminal
- An airport terminal
- A depot
- A container terminal
- A train station
- And similar places
Suppose you decide to order a shipment of fishing rods from an American factory. In that case, the logistics process including transshipment looks like this:
- At the Michigan factory, the rods are packed and palletized
- A truck with tailgate picks up the pallet of rods and takes them to a central depot 60km from the factory
- The pallet is transferred to a truck that drives as much as 1,355 miles to the Port of New York and New Jersey
- From there, the pallet is transferred into a container that goes on a container ship to Rotterdam
- After traveling 6,122 kilometers by sea, the containers are taken off the ship at the Rotterdam terminal. Here the pallet is loaded by a forklift into a truck.
- The truck drives another 109 kilometers to the warehouse near Arnhem. There it delivers the pallet of fishing rods
After 7646 kilometers, a truck, a truck, a ship and another truck, the rods have arrived at the warehouse. There can be fishing!
The importance of good transshipment
For the logistics chain, an efficient way of transshipment is crucial. This can save a lot of time and money. Anyone who has ever driven past the port of Rotterdam can imagine that this is a huge logistical challenge to manage. With transshipment, there is also a chance that the goods will be damaged. This is why it is also important that transshipment terminals are set up to minimize the chance of this happening. Good transshipment therefore involves meeting the following three criteria:
- It goes fast
- It is not needlessly expensive
- There is minimal risk of damage
Quotes for logistics?
Request multiple no-obligation quotes from affiliated logistics companies.
Companies specializing in storage, transshipment and fulfillment
A wide range of companies are active in storage, transshipment and fulfillment. In our business directory we clearly indicate what a company's specialties are and, for example, which trade associations and quality marks a company is affiliated with. This helps in your choice. In addition, we always recommend that you request a number of quotations to see which company is the best match for you. This is certainly not just about price. Read on to find out what to look for when comparing quotes and quality.
