These hubs have designated customs area to avoid hindrances while the transhipment hub is being used as a temporary port during the movement of goods designated for a different destination. Transhipment hubs in maritime shipping require sizable space for storage of containers sometimes for days before the cargo gets loaded to connecting ships at these terminals. Relay transhipment happens in cases where the transhipment hub connects shipping routes along the same region, but services different port calls.At times service coverage of smaller shipping companies are broken up into smaller trade lanes and therefore a shipment by such carrier may be subject to several transshipments from the port of origin to the port of destination.to combine smaller shipments into one large shipment or vice versa (division). Transshipment may be required in order to consolidate i.e.Thus facilitating link-ups of local shipping networks with international shipping networks. Hub-and-Spoke type transhipment connects short distance feeder lines (and ports) with long distance deep-sea lines (and ports).

Transshipment may be required to change from one type of ship to another.Transshipment may be required to change the means of transport.Or another way of looking at transshipment from the maritime hub point of view is the process of off-loading a container from one ship and loading it onto another ship. Transshipment is the shipment of goods (or containers) to an intermediate destination and then to yet another destination. In the wake of increased global trade within the network of maritime transport, such hubs called transshipment hubs have emerged and shipping companies are now relying even more on transshipment hubs to connect to different ports in the world. The above logic is applicable to marine shipping of cargo too. Also, this model gives the ability to the regional airlines to collect more such passengers arriving at the 'hub' in London from different places in order to fill up their regional 'feeder' flights. London can be called the transhipment hub in this example. In essence the passengers were ‘transshipped’ in London. London would work out as a 'hub' to fly these 10 passengers to first in one single flight from New York and then put them on to regional aircrafts in London that will then connect them to their 10 smaller airports 'spokes' in England. Therefore, in order to work optimally within these constraints air transportation follows the 'hub and spoke' network model. Ideally each one would prefer a direct flight from New York to their respective destination airport in England but there may not be enough volume to justify a direct flight with adequate level of frequency to all 10 destinations in England from New York. Letter of Credit and Transhipment in International Trade LETTERS OF CREDIT AND TRANSSHIPMENT IN INTERNATIONAL TRADEĬonsider that there are 10 individuals in New York that wish to fly to 10 different small regional destinations in England.

Feeder vessel meaning