Transhipment - Meaning & Definition

Published in Operations and Supply Chain Terms by MBA Skool Team

What is Transhipment?

It is a combination  transportation and deconsolidation.

Transportation is done during all the stages  ie from the source to  an intermediate  storage location  through to a final destination. Either the same vessel is used  to carry it to its  destined locations.

Unbundling of  shipment is done  from  the warehouse to its final destination.  It became necessary to classify the movement as Transshipment as the goods went through a number of hands and in case of an illegal activity like smuggling.

The transshipped goods however do not undergo a customs check as it will deter it from being an efficient means of  transportation . This makes it more susceptible to  illegal activities.

Examples :

The transshipment strategy is recommended  for companies like IKEA   where the goods are easy to assemble  or disassemble by the customers themselves.  It requires  an export license to carry transshipped  goods  unless it comes under certain exemptions.  It usually takes place between two different countries.


  • In those cases where there is no direct link between  the  source and locations  and  that is why is transferred into another vessel in an inland waterway where there is a  transfer to a higher depth vessel .
  • As per the regulations a prior 15 days notice has to be sent to the trade ministry , finance ministry and customs to make arrangement for  the transshipped vehicle.

Hence, this concludes the definition of Transhipment along with its overview.

This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

Browse the definition and meaning of more similar terms. The Management Dictionary covers over 1800 business concepts from 5 categories.

Continue Reading:

Share this Page on:
Facebook ShareTweetShare on Linkedin