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Transshipment

Unloading cargo at an intermediate port and loading it onto another vessel to reach its destination.

What is Transshipment?

Transshipment is the transfer of cargo from one vessel, aircraft or other means of transport to another at an intermediate point on the way to its final destination. In container shipping, hub ports receive boxes from mainline or feeder vessels and reload them onto other services, letting carriers connect markets without direct calls. In customs terms, Specific Annex E, Chapter 2 of the WCO Revised Kyoto Convention defines transhipment as the procedure under which goods are transferred under customs control from the importing means of transport to the exporting means of transport within the area of one customs office. Goods in transhipment are not subject to duties and taxes provided the conditions laid down by customs are met. A transshipped container is counted in port throughput both when it is discharged and when it is reloaded, which is why hub ports report high TEU volumes relative to their local trade.

Why it matters for forwarders

Each transshipment adds a handling step and a connection risk: a delayed feeder or mainline vessel can leave containers waiting at the hub, extending transit times and complicating free time calculations. Forwarders should check whether a routing is direct or via a hub, how long the planned connection is, and whether the customer's documents or contract restrict transshipment. For preferential origin, goods routed through a third country generally have to remain under customs control and undergo no more than handling needed to keep them in good condition, so processing or relabelling at the hub can cost the duty preference. Some cargo, such as certain dangerous goods or reefers, faces extra restrictions or monitoring at hubs. Track each leg separately rather than relying on a single estimated arrival date.

Transshipment FAQ

Does transshipment affect customs duties?

Goods under a transhipment procedure are not subject to duties and taxes at the hub if customs conditions are met. Duty is assessed in the country of final import, where routing can matter for preferential origin.

What is the difference between transshipment and transit?

Under the Revised Kyoto Convention, transhipment is a transfer between means of transport within the area of one customs office, while customs transit moves goods under customs control from one customs office to another.

What is the difference between transshipment and a direct service?

On a direct service, the same vessel calls at both the port of loading and the port of discharge. With transshipment, the container changes vessel at a hub, which adds a handling step and a connection that can delay delivery.

Can customs refuse transshipment?

Customs can attach conditions, and goods must stay under customs control. The Revised Kyoto Convention recommends that transhipment not be refused solely because of the goods' country of origin, the country they arrived from or their destination.

Sources

  1. Revised Kyoto Convention, Specific Annex E (Transit and Transhipment), World Customs Organization
  2. UNCTADstat Insights: Maritime and other transport, UNCTAD
  3. Rules of Origin Handbook, World Customs Organization

Rules and figures change. Check the current text with the issuing body before relying on it.

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