Transloading facilities stand out as a different transportation process that is often confused with other terms such as cross-docking or transshipping.There is minordifferences between these terms, which can make a user opt for the one which best suits him best. Therefore, this article’s purpose is to clear this confusion and explainthe differences between these terms and help you to understand and make better choices.

Transloading: Meaning

Transloading refers to a service that uses a combination of different modes of transportation such as rail, ship, truck or cargo plane and helps to transfer inbound goods, through a process of preparing, storing, and transferring shipments, to outbound delivery.From providing companies with warehouse storage to eliminating transportation barriers in between, transloading is an excellent service to smooth the process along the supply chain.

Transloading: Benefits

Understanding the benefits of Transloading will help you to make a better decision regardingyour company’s logistics. Here are a few of the benefits.

• Availability of Storage- When shipping internationally, cargo or goods don’t need to be always ready for delivery as soon as they arrive. This allows the retailers to appropriately manage the demand and supply, as retailers can keep the goods in storage till there is a demand in the market. They do not have to wait for the shipments to get re-supplied.

• Ability to cover more area – In many cases, overseas shipments are not possible with a bounded mode of transportation. The combination of multiple modes of transportation helps to cover a wider geographical area in Transloading services.

• Cost-effectiveness – When dealing in long distances, carrying goods via rail, and then carrying them bytrucks to their final destination, the costs are reduced. As the facility provides you with no restrictions on different modes for shipping which helps to make the whole process cost-effective.

Cross-Docking: Meaning

Cross-docking refers to the process of unloading freight from inbound trucks, holding it in a warehouse or small terminalfor a short period, and loading it efficiently to another truck for outbound shipping.

Cross-Docking: Benefits

Understanding the benefits of Cross-Docking will help you to make a better decision foryour company’s logistics. Here are a few of the benefits:

• Time-saving – Simply put, the purpose of cross-docking is to create a time-efficient supply chain. In this service, there is no or less storage time in between. It is a good option for time-sensitive or perishable items.

• Reduces labour costs–Use ofthis facilityrequires less man-handling as there are no storage warehouses in between. The goods are transferred from one truck to another. As a result, labourcosts are reduced.

• Eliminates the need for storage space – Items shipped in this type of facility are perishable items thatneed to be shipped in less time. Hence, there is noneed for a storage system.

Difference between Transloading and Cross-Docking

Transloading is used in intermodal transportation and when items need to be processed and/or stored before being moved appropriately. Transload services are ideally suited for international, foreign and cross-country shipments.

Cross-Docking is a method of swiftly and efficiently redirecting products without the need for storage or processing. Cross-Docking is best for cargo that requires a junction for multiple shipments as well as shipments that require faster delivery, such as perishable and time-sensitive goods.

Transloading and cross-docking are two services that aim to cut costs and improve supply chain efficiency. Both services may be required at different locations in the supply chain, depending on the type of shipment. It all depends on how the items are shipped, where the cargo originates and ends, and how quickly the shipment must be delivered.