What is Transloading in Logistics Explained?

Ideally, the supply chain process cannot be complete without undergoing the transloading process. Transloading happens around you if you are in the supply chain management, maybe you haven’t heard of the term “Transloading”. The intermodal shipping process simplifies transloading. In this article, we shall discuss what is transloading in detail.

Luis Lopez

What is Transloading?

Transloading can be defined as ‌moving cargo from one mode of transport to the other. For example, moving sea containers to truck or rail transport. 

There are many applicable examples. In the supply chain management process “Transloading” is a word you won’t miss. It is common when goods are being transported from the port to the warehouse to the distribution centers, and then to specific customer pick stations. 

There is a Transloading fee applicable when moving cargo from transport mode A to transport mode B. This is because the freight needs to be palletized, deconsolidated, and loaded to trucks before being transported to the final destination. 

What is Transloading Process?

In freight management a process can be defined as transloading – If the cargo from one container is 100% unloaded and loaded in a different container. This means that the cargo isn’t transported in the same container it was shipped to the port in. This is called the “Transloading Process”. Conveyor belts are used for light freight while cranes and forklifts are used for palletized and heavier freight. 

What Does a Transloader Do? 

All the duties of transloading are assigned to a “Transloader” in a transloading facility. Depending the employee skillset and experience roles are subdivided into different categories such as transport facility manager, transload operator, freight conductor, lumper, or warehouse worker. Are you interested in working in a transloading company; which job category suits you? 

What are Transloading Services?

Transloading has become a household name in freight shipping and therefore it is worth understanding what are transloading services? According to UNCTAD’s Global Trade Updates in February, 2022, the global trade in 2021 is estimated to be about $28.5 Trillion and is likely to surpass $30 Trillion in 2022 – This means transloading is here to stay and we need to learn the best practices. Transloading services can be offered both domestically and internationally. 

In fact a simple definition of transloading services will include:

• Rail to Truck and vice-versa exchange 
• Rail to Rail exchange 
• Truck to Truck exchange. 
• Larger Ship to Watercraft 

These are just a few transloading services listed, but the list can be expanded. In the world today consumers are enticed by honesty, trust, timeliness, fullfilment, and almost same-day distribution or delivery making transloading a vital process of our lives. The transloading expand to the 3PL and 4PL logistics companies. 

How Much Do Transloaders Make?

It is sometime difficult to quantify how much a transloader makes. However, according to Glassdoor transloaders salaries index the average salary for transloaders is between $18 – $30 per hour. However, this is dependent on the role assumed by the transloader at the transloading facility. 

The transloading rate – refers to the cost charged to the container owner for freight handling or transloading services. It is often advised that you stick to one 3PL logistics company for all your freight services to ensure a cost effective shipping plan. The rates charged are dependent on: 

• Commodity perishability, type, and quantity. 
• Route servicing cost and distance covered to final delivery. 
• Timeline for shipping.
• Freight insurance cost. 

How many Transloading Facilities does Thailand have?

The transloading services are available in Thailand. However, the specific number of transloading facilities that Thailand have can’t be exact but Thailand has long history trading in the ASEAN region. There are different transloading service companies operating in Bangkok. Some companies also offer transloading services for specialized cargo (requiring special climate conditions). Efficient cross-border transport models research conducted by the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP) have detailed brief of the transloading facilities in Thailand. 

Do you now understand what transloading in logistics? Share any thought you have about transloading. Thank you.