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These per diem fees are charged to cover the cost of an out-of-commission shipping container which can be incredibly costly for transportation providers. Per diem fees are charged when transloading services are unavailable, and a shipping container has to wait before it can be loaded, unloaded, deconsolidated, or reconsolidated.

At the same time, transloading fees are extremely worthwhile for shippers who are looking for an efficient and effective shipping process. As a result, transportation companies may charge transloading fees to cover the cost of labor that goes into these steps. Transloading, in addition to both deconsolidation and reconsolidation, requires a lot of work. These could include gaming systems, headphones, mobile phones, televisions, etc. In this case, the computer would be deconsolidated from the other units in the shipment at the port in Los Angeles before being reconsolidated with other unrelated items that are going to the same store. Obviously, this journey would require transloading at some point, as well as deconsolidation and reconsolidation. Reconsolidation refers to the process of combining several smaller units of freight to create larger units that fill up an entire truckload.įor example, let’s say that a computer is being shipped from the manufacturer in China to a retail store in Los Angeles, California. But what do they mean, and how do they relate to transloading?ĭeconsolidation refers to the process of breaking down a unit of freight into smaller units all the way down to the piece-part level. When discussing transloading, you may also hear the terms deconsolidation and reconsolidation. What Are Deconsolidation and Reconsolidation? Just make sure that your containers keep moving to avoid incurring per diem fees that can be just as expensive as traditional storage fees - if not more so.Įssentially, transloading keeps supply chains fully operational, efficient, and effective. Gain Storage: When transloading is combined with cross-docking, it eliminates the need for extra storage, which can quickly get expensive.Increase Flexibility: When you get creative with your shipping by using transloading, you have more flexibility to use a number of different shipping methods to create a process that works for your shipping time frames and budget.However, transloading services can help you reduce lead time and get creative with your shipping.

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Reserve Capacity: It’s no secret that the transportation industry is dealing with a lot of issues - from container shortages to truck driver shortages - that can wreak havoc on your shipping operations.

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And in a world where customers tend to expect fast and free two-day shipping, time is really of the essence.

Save Time: Perhaps one of the biggest benefits of transloading is that it can save you a lot of time.

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Let’s dive deeper into some of the benefits of transloading to provide you with the full picture: Without transloading, shipments would get stuck at different points in the shipping process - which wastes money and could potentially waste or otherwise damage products. Transloading is an essential component of the shipping process that keeps shipments moving. Most freight utilizes intermodal shipping to get from one place to another, which involves transferring freight from one mode of transport like a cargo ship to another like a semi-truck. Transloading is the process of loading and unloading freight between modes of transport. So if you’ve been missing out on this beneficial shipping service, here’s everything you need to know to get started with an experienced shipping provider like RPM: What Is Transloading? Transloading could completely revolutionize the way you handle your shipments.