Learn how transshipment terminals work

To minimize operational costs and optimize logistics procedures, it is essential for process managers to clearly understand how transshipment terminals operate. After all, transshipment needs to be fast and effective.

For those working, for example, in the international shipping industry, this is a common term and part of the routine. However, there are times when these professionals need to train their teams or even make presentations for clients and executives.

In situations like these, in order to achieve goals such as optimizing operations, it’s important to know how to explain the meaning and function of transshipment terminals. For this reason, Wilson Sons has created this article.

In this material, we will clarify the meaning of the term “transshipment terminal” and discuss how their operations work. Additionally, we will mention what a cargo transshipment station is and comment on the importance of waterway transshipment, a key mode of transportation for our country.

We believe this post on how transshipment terminals work will enrich your knowledge and professional life. Here you will recall, learn, and reinforce the key concepts on this subject. Keep reading!

What does a transshipment terminal mean?

In general terms, transshipment terminals are facilities designed to receive, store, and transfer goods from one mode of transport to another, either of the same type or a different one.

The need for transshipment terminals arises because a single mode of transport is not always capable of delivering products directly to the final consumer. Without this structure, it would be impractical to export our grains to other continents, such as Europe, for example.

Regarding storage, imagine trying to load a ship with grains while unloading directly into the ship using trucks. Think about the confusion inside the port with the number of vehicles unloading simultaneously, due to the lack of storage space.

This is where transshipment terminals come in: they store goods to be unloaded at the required time and in the necessary quantity to transfer them to their intended recipients.

It is important to note that, in some cases, there is no need to change modes of transportation, meaning there can be transfers between buses, aircraft, and others.

For example, bus stations and airports can be considered transshipment terminals for people. In terms of goods, we can cite waterway, rail, and pipeline transshipment terminals.

In the context of transporting goods, after discussing transshipment operations and cargo stations, we will highlight waterway transshipment. One of the reasons for this is that this mode plays a key role in the movement of ports in our country.

Thus, transshipment terminals can be seen as the smart and effective way to drive the logistics machinery and supply chains. Through them, industries, businesses, and charter companies reduce costs and deliver their products quickly to consumers and users around the world.

What is a transshipment operation?

 A transshipment operation is the practice carried out at transshipment terminals: receiving, storing, and transferring goods from one vehicle to another, or within the same vehicle, within a specific time frame.

Transshipment Operations

Certainly, each type of terminal and cargo may have its peculiarities. However, there are certain procedures and actions that are generally the same. Here are the main transshipment operations:

• Reception: documentation verification
• Authorization for entry into the terminal compatible with the load
• Load weight control
• Estimation; loss verification
• Product classification, which can be either documentary or experimental
• Physical, chemical, or biological pre-treatment
• Storage
• Safety conservation to avoid criminal actions, deterioration, or natural losses
• Removal for shipment, automated, mechanical, or manual
• Weight verification (counter-weighing)
• Handling and loading, manual, mechanical, or automated
• Issuance of the bill of lading
• Dispatch of the vehicle intended for the cargo transport operation

It should be emphasized that these operations, depending on the technology present at the transshipment terminal, can be performed in an automated, mechanical, or manual manner.

In some cases, like counter-weighing, weight estimates are sometimes made depending on the type of cargo.

What is a cargo transshipment station?

A cargo transshipment station (CTS) is one of the names for cargo terminals. It is where the operations between cargo vehicles are carried out, regardless of their transportation mode.

To solidify the concept of a cargo transshipment station, we consider it important to mention the official definition from the Federal Revenue Service regarding cargo transshipment. Here’s the definition:

According to Decree No. 6,759, from February 2009, Art. 335, from the Federal Revenue Service, cargo transshipment is the direct transfer of goods from one vehicle to another.

In the definitions of this same decree, it’s important not to confuse cargo transshipment with cargo transshipment handling.

Cargo transshipment handling involves unloading goods from one vehicle and later loading them onto another. In this case, the goods may be stored, and there is no need for the same speed of dispatch as in transshipment operations.

Types of cargo at transshipment terminals

 For transshipment terminals to be built and equipped to handle goods, it is necessary to know the universal classification of cargo. Here are the types of cargo:

• General cargo: Also known as dry cargo, consisting of goods packed in bags, crates, boxes, bales, drums, and straps.
• Bulk cargo: Goods transported without individual packaging. Usually, the transport vehicle itself serves as the containment. Examples include grains, minerals, liquid bulk, petroleum products, vegetable oils, and gases like chlorine and LPG.
• Unitized cargo: Cargo packaged as a single unit to facilitate handling during transfer. Common forms include standard containers, pallets, and pre-strapped units. In some cases, a non-drawn vehicle serves as the unifying element, such as trailers or lighter aboard ships.
• Refrigerated cargo: Goods that require temperature control for preservation (fish, meats, fruits, and certain types of medicines).
• Break bulk or individual cargo: Common for transporting bulk items but with larger volumes. Examples include paper rolls, steel industry products, timber logs, etc.

Terms used in transshipment terminals

 Like other industries, transshipment terminals and ports use specific terminology to avoid misunderstandings in their operations. The terms used in transshipment terminals are known as INCOTERMS. These are acronyms derived from the English language: International Commercial Terms.

INCOTERMS were created in 1936 when the International Chamber of Commerce (ICC) in Paris interpreted and consolidated various contractual terms used in international trade.

Here are the codes and descriptions from the INCOTERMS 2020 table, as per ICC Publication No. 723-E:

• EXW – Ex Works (at the origin)
• FCA – Free Carrier
• FAS – Free Alongside Ship
• FOB – Free On Board
• CFR – Cost and Freight
• CIF – Cost, Insurance, and Freight
• CPT – Carriage Paid To
• CIP – Carriage and Insurance Paid To
• DAP – Delivered At Place
• DPU – Delivered at Place Unloaded
• DDP – Delivered Duty Paid

Another important term used in cargo transport concerning transshipment is “Transshipment.” This refers to unloading and reloading products while they are in transit, always using the same transport mode.

Service Fees Charged at Transshipment Terminals

To provide quality services and maintain facilities, machinery, and equipment in optimal operating condition, certain fees are charged at cargo transshipment terminals.

It’s important for operations managers and product suppliers to be aware of these fees to properly calculate cargo costs and avoid financial losses.

Here are the commonly charged fees:

• Cargo handling
• Cargo storage: based on weight, area occupied, value, risk, and usage time
• Ancillary services, such as weighing, disinfection, drying, repairs, and packaging
• Administrative services, including document issuance for transport authorization, certifications, etc.
• Commissions for marketing: in cases of agency work to place products on the market

In addition to service fees, operators of transshipment terminals must be aware of customs inspection carried out by the Federal Revenue Service. The inspection ensures that the cargo complies with regulations.

Facilities that make up cargo transshipment terminals

To ensure cargo handling operations are safe, comfortable, and efficient, ports must have facilities and buildings for transshipment terminals. Here are the main ones:

• Administrative offices
• Sanitary facilities, snack bars, and dining areas
• Security booths and entry points
• Open or closed warehouses for cargo storage
• Paved and properly signaled lanes
• Tanks and silos

Machines and Equipment in Transshipment Terminals

 For cargo handling, packaging, and treatment at transshipment terminals, platforms and machinery are required. Here’s what you will find:

• Fixed or mobile boarding platforms with conveyor belts, cranes, piping, and gantry structures
• Unloading platforms: hoppers, cranes, gantries, truck dumpers, forklifts
• Horizontal movement machinery: tractors, shunting locomotives, mechanical horses, trailers, platforms, conveyor belts, gantry structures
• Vertical movement machinery: cranes, gantries, winches, elevators
• Machinery for both horizontal and vertical movements: electric or pneumatic pumps, cable cars, etc.
• Equipment for special handling and treatment: like mechanical shovels and aerators
• Scales and sensors for mechanical or electronic weighing
• Packaging and conditioning machines
• Drying equipment
• Disinfection and washing equipment

Waterway Transshipment

 Waterway transshipment, also known as aquaviary, takes place at hydrographic terminals or, as we’ve already mentioned, at Cargo Transshipment Stations (CTS). These are specific environments located at export or cabotage ports.

Waterway transshipment stations essentially serve two functions:

1. To receive cargo from the country’s production coming from road, rail, and maritime transport and transfer it to ships for export or cabotage.
2. To receive cargo from foreign or cabotage ships for distribution inland via rail or road transport.

In Brazil, waterway transport is divided into river and maritime modes. Maritime transport is the most important, accounting for around 80% of Brazil’s international trade. This method of transporting goods offers advantages such as being cost-effective, eco-friendly, and easing road congestion.

The maritime mode is divided into cabotage (between ports in the same country) and long-haul (between ports in different countries).

For river transport, waterways are built, using navigable rivers, lakes, and lagoons. This is crucial for transporting large quantities of goods such as minerals and non-perishable products.

Waterway transport, both maritime and river-based, and operations at transshipment terminals generate millions of jobs annually, offering opportunities for workers on vessels and at cargo transshipment terminals.

We hope this article provides you with a comprehensive overview of the main aspects of transshipment terminals and how they operate. Enjoy your time and continue reading our complete guide on cargo handling to enhance logistics efficiency.