Difference between transhipment and cargo in transit

23/03/2019 Difference between transhipment and cargo in transit..
  Menu
Difference between
transhipment and cargo in
transit
10 September, 2014 by Hariesh Manaadiar
 Difference between, FAQ, Questions and Answers, Shipping and Freight, Shipping
Knowledge, Vessel Operation
 Cargo in Transit, Difference between, transhipment
 30 Comments
Estimated reading time = 3 minutes
What is the difference between

Transhipment and Cargo in Transit..??
This article is based on a question from a user

Krishna..
What is Transhipment..?? – Transhipment is the act of

off-loading a container from one ship (generally at a
hub port) and loading it onto another ship to be
further carried to the final port of discharge..
How is this different from Cargo in Transit..??
A cargo that is moved from an origin point across 

international borders to another country over land is
https://shippingandfreightresource.com/transhipment-and-cargo-in-transit/ 1/30
termed as “Cargo in Transit”..
Let me explain further..
There are several countries and commercial centers

around the world that don’t have a seaport and
these countries have to use the seaports of other
countries in order to import or export their cargo..
Some examples of such countries would be
Ethiopia which uses the port of Djibouti in

Djibouti as their gateway port
Uganda which uses the port of Mombasa in
Kenya as their gateway port
Moldova which uses the port of Constanta in
Romania as their gateway port
Cargo in Transit move could be as below :
1. Cargo from Country A is moved to

destination Country D via Country B (which

could be a sea port) and Country C (another

inland country) or
2. Cargo from Country A is moved to
destination Country D overland, via countries
B and C where Countries A, B, C and D are all
within a union of countries like the EU
Bills of Lading and Manifest for cargoes bound for

such inland country destinations, must carry the
clause Cargo in transit to “name of country” ..
This clause tells the gateway/transit port/country
that the cargo is not meant for consumption in their
country and is meant for the manifested inland
country and by virtue of this clause, the cargo
maybe allowed to transit international borders
under customs control..
If this clause is not included in the bill of lading and

manifest, the movement across the international
border will not be allowed and the recipient might
need to customs clear the goods at the gateway
port which might not be an ideal situation for the
recipient..
In some cases, shipping lines or government

regulations might dictate/insist that the clause reads
as “Cargo in transit to “name of country or final
destination” on client care, risk and cost“..
Cargoes in transit may be moved via any mode of

transportation depending on the infrastructure
available..
The documentation and customs clearance

processes between the countries depend on their
trade and other co-operation agreements.. Unions
and Communities such as EU and SADC have
agreements for cargoes moving in transit within/via
their territories..
To summarize :
*** Transhipment is the act of off-loading a container

from one ship (generally at a hub port) and loading it
onto another ship to be further carried to the final
port of discharge.. Cargoes that have been off-loaded
at a port for transhipment are NOT allowed to exit
the port by land or rail across international borders to
a land locked country unless they are declared as
Cargo in Transit..
*** Cargo in Transit is the movement of cargo that is
1. discharged at a gateway seaport or

2. originating from a country within a union
across international borders to another country where

the final destination is (generally) a landlocked
country..
Would love to hear your experiences with In

Transit cargo especially within the African Union
countries and within the European Union..?? Do
you find the documentation and movement
quite cumbersome..??

Share this:
      4 1
Like this:
Like
One blogger likes this.
Related Posts you may find interesting
Does Customs check

Will the Port
containers at
transhipment port of Loading
With 90% of the
change if my
Bill of Lading date for worlds trade moving
transhipment cargo by sea, there are a lot container is
of transhipments that
transhipped..??
take place all over the
Will the Port of
Loading change if my
container is
transhipped..??
 Previous Article Next Article 
Be part of the discussion and share your views

about the article here..
Enter your comment here...
This site uses Akismet to reduce spam. Learn how

your comment data is processed.
30 thoughts on “Difference between

transhipment and cargo in transit”

Keziah
10 April, 2018 at 08:17 | Reply
A big tanks for writing this explicitly. And I’m

so satisfied with thisome!
Rashad
22 February, 2018 at 15:40 | Reply
could we put statement of CARGO IN

TRANSIT without put the destination of that
transit
Kevin
13 February, 2018 at 09:25 | Reply
Hi can the same vessel dock at port A port

Rashid uae and then proceed to port B
bandar imam Khomeini Iran final destination
Regards
Kevin
Hariesh Manaadiar
13 February, 2018 at 17:30
Of course it can..
Roy
12 April, 2017 at 04:57 | Reply
Hi Sir,
It was an interesting sharing. If we want to

ship the good from Port Klang Malaysia to
Blantyre Malawi via Durban by LCL shipment,
does our goods subject to custom clearance
in Durban which is consider as a transit port?
What is the risk that we have to take note in
this case?
Hope to hear from you soon.
Regards,
Roy
nitin sonawne
22 March, 2017 at 09:45 | Reply
What is process import documention start to

end for nahava sheva
Bishara
21 November, 2016 at 16:26 | Reply
Dear Mr Hariesh,
I have a case where port of discharge (Callao

– Peru) and place of delivery (Matarani –
Peru) in the BL are in the same country and
are both Maritime ports. INCO term for the
sales contract is CIF Matarani. In such a
case… where do we need to clear goods? and
who is responsible of clearance? Can we
indicate in transit when both destinations are
in the same country?
Appreciate your feedback.
Regards,
Hariesh Manaadiar
21 November, 2016 at 23:01
I am not sure what the rules are in Peru, but

in a lot of the countries customs clearance
must be done at the first port of entry
which in your case is Peru.. But in any case,
the sellers obligation is till cargo reaches
the CIF named port of destination, in this
case Matarani..

But under CIF, it is the responsibility of the

buyer to obtain, at his own risk and
expense, any import licence or other official
authorization and carry out all customs
formalities for the import of the goods and
pay all duties, taxes and the costs of
carrying out customs formalities and for
their transport through any country unless
included within the cost of the contract of
carriage..
Trust this assists..
hassan
Dear Mr Hariesh
after unpacking the cntr , what is the place

should client to back the empty cntr in it ? if
the shipment is transit or cargo in transit ?
Thanks
Hassan
Hariesh Manaadiar
20 November, 2016 at 14:00
Hi Hassan, neither.. The empty container

has to be returned to the shipping line’s
nominated depot which they will advise at
the time of giving the release..
Liesbeth van Werkhoven

what are the risks for a carrier who issues the

bill of lading and allows the remarks “cargo
in transit ” when the governing charter party
is from loadport A to discharge port B. Can
the carrier be held responsible for any
“transit” ?
Hariesh Manaadiar
1 November, 2016 at 13:46
Hello Liesbeth, CP is normally used in bulk

vsls and to some extent in break bulk
shipments.. Carriers for both of these
modes only accept port to port shipments
as far as I have seen.. In transit is normally
used by container shipping lines and in
container shipping CP is not used.. There is
no legal basis to hold carrier responsible for
cargo remarked in transit in the body of the

bill.. Carrier will be liable only if Final
Destination in bill of lading is shown as a

place different from the POD..
Mustafa Yousef Abdulghafor Esmail

17 October, 2016 at 05:02 | Reply
This article is very helpful. Thanks for sharing.
Hariesh Manaadiar
17 October, 2016 at 22:04
Glad to be of help Mustafa..
Suresh
9 August, 2016 at 09:43 | Reply
Dear Sir,
Please advise if a shipment is going to Iraq

via Bandar Abbas, Iran, the consignee on the
OBL should be of Iraq or Iran. As shipping
line has received booking upto Bandar
Abbas, FPOD on BL will be Bandar Abbas
with a transit clause i.e. “Cargo in transit to
Iraq on consignee’s own cost & risk. Carrier’s

responsibility ceases at Bandar Abbas”.
The FPOD on shill bill filed with Customs

shows as Bandar Abbas, Iran & OBL is also
shows the same FPOD, is it right to show the
consignee of another country ?
Hariesh Manaadiar
9 August, 2016 at 12:15
Hello Suresh, consignee can be in any

country as long as the transit country’s
customs allows it.. Some countries do not
allow transit further if the consignee details
are not in the country of destination..
meryam04
18 July, 2016 at 11:52 | Reply
Hi Hariesh,
Hope you’re doing good; You know, your
blog is my first reference when I want to
know something in international logistics! I
love it!
This is my first time to have “cargo in transit
to..” case; so you explained well; I’m in the
begining of a new transaction with that; so I’ll
tell you what I have on the BL As Soon As I
get it;
One question: on the BL, Where shall “cargo

in transit to ..” be mentioned? on the
description; Port of discharged..?
Thanks
Hariesh Manaadiar
18 July, 2016 at 15:42
Hi Meryam, it is normally mentioned in the

body of the bill below cargo description..
Mary
4 July, 2016 at 18:47 | Reply
I find your blog very informative. Thanks for

sharing these useful website with all of us.
g2-6e7f7af78bf18046c39b4c2bf4ac33cb
17 September, 2014 at 10:19 | Reply
Dear all,
(I still find this blog very interesting &

readers’ contributions are always a pleasure
to read … thanks a lot to all)

A warning though : co-loaders (Shpco,

Vanguard, Eculine …) may use the word
“transshipment” when they unload the cargo
out of a container, then re-load it into
another container.
It is then different from a “regular

transshipment” as defined by the article, and
I 100 % agree with the article’s definition.
it is therefore useful to have co-loaders

clarify what the voyage of the cargo will be :
– direct sailing : 1 container & 1 vessel
– regular transhipment(s) : 1 container, more
than 1 vessel
– co-loader’s transshipment : more than 1
container, and therefore more than 1 vessel
As a FF, this is a piece of information that we

owe to our clients and that co-loaders
usually forget to mention : this is usually
because their operations departements (that
book containers & voyages) are generally
totally disconnected from their booking
departments (that register clients’ bookings
& follow deliveries & clearance : basically
they fill in containers).
On the other hand, I am currently starting to

ship containerized cargo to Bolivia via Arica
in Chile : any feed-back re. this type of
shipment will be welcome.
Many thanks to all. E. 
Mthokozisi
Hi Hariesh
I just read the article about the difference

between Transhipment and Cargo in transit. I
understand the difference between the two
but what I would like to know is first; to what
extent will customs concern itself with
transhipment cargo since the cargo isn’t
really coming into the country but will
however be within an “entry point” into the
country and secondly; If cargo is indicated to
be “cargo in transit” what measures will
customs have in place to ensure that the
cargo does eventually leave the country at
another exit point?
Kind Regards
Mthokozisi Meywia
Hariesh Manaadiar
11 September, 2014 at 21:14
Hi Mthokozisi, very good questions..
1) When transhipment cargo comes into a


country it is declared to the port as
transhipment and it is stacked separately

from the local import cargo.. Since it has
been tagged as transhipment in the port
system, the port will not allow it to move
out of the port area/control.. So in that
sense, I would say that customs does not
involve themselves to a great extent..
2) When the cargo indicated as “In Transit”

is landed, in the case of SA, for example, a
RIT (Removal in Transit) document.. Once
this document is filed goods may be moved
in transit, with the temporary suspension of
duties or VAT.. In these cases the entity that
is filing the RIT (usually the bond holder) is
required to acquit their liability by providing
proof to customs that the goods have
reached their intended destination or has
exited the borders of South Africa..
I am pretty sure that most countries have

similar arrangements for In Transit cargoes..
If anyone has any other observations, please

feel free to share..
Leandro Neves
Hi Hariesh,
Really helpful article…Thanks for share! 
Rahul S.
Hi Hariesh, we export cargo on a regular

basis to Uganda, for which the port of
discharge is Mombasa, Kenya. But I checked
on the BL, there is no usage of the term
“Cargo in Transit”. The place of final
destination is Kenya. I suppose the customer
is clearing the goods at Mombasa itself.
I guess it is not mandatory to mention this

clause and it depends on what the customer
wants.
Hariesh Manaadiar
Hello Rahul, thanks for sharing.. Yes if the In

Transit clause is not mentioned, then it
would have to be cleared at the discharge
port and then moved inland..
Ramesh
Yes it is cumbersome in Africa, especially port

clearances…… we also transit cargo to
afghanistan via pakistan…….especially when
we make a bl to order of a bank!
Hariesh Manaadiar
Thank you Ramesh, for the benefit of all,

can you elaborate a bit more on the
challenges in Africa and for Afghanistan via
Pakistan..
Sajid Hussain
Hi All,
Just wanted to add, for Pakistan to
Afghanistan Trade, After RIT or PGD
(Pakistan Goods Declaration) clearance, the
Pakistan Customs affixed special seals to the
containers (trucks to be placed by only
Customs Bonded Carriers having their fleet
owned or not owned must registered with
Customs) and at the time of Border
Crossing Customs Station at Border (Exit
point) recheck those seals and cut them
when they cross the chains. Interesting 
point is that when a truck leaves from port

having customs seals affixed it is updated in
customs system available at gates and if a
truck fails to cross border with seal intact it
can never take a customs load again and
that Bonded Carrier has to face a show
cause for one of their truck not crossed
within stipulated time frame.
Mthokozisi
Hi Sajid, thank you for your contribution,

you may find this to be a peculiar question
but how fluid is the system in Pakistan, and
what types of hurdles have been
encountered with this system?
Sajid Hussain
Hi Mthokozisi,
I don’t see any hurdles or interventions as
Bonded Carriers (Transporters) have a big
security money deposited with Customs
and in case of breach of laws customs
forfeits the amounts of possible duty losses
to government with all the possible fines 
and legal actions thereof. So to me in the

good spirit of this procedure doesn’t seems
any flaws.
Advertiseme
nts
I need help
in..
Click on the items

that you need help
with and I am sure
you will find relevant
articles related to
your question..
If you can’t find it,

enter the search term
in the search bar
below (and hit enter)
What are you lo

or simply send me a
tweet about what you
are looking for or
drop me a mail..
Author
Hi, I am Hariesh
Manaadiar, the author
of this educational
blog on shipping and
freight..
Let’s be in touch via

these social media
platforms

Latest
Articles
Tips for Safe and

Effective Shipping of
Potentially Hazardous
Materials 22 March, 2019
An innovative
solution for empty
container crisis 21 March,
2019
CMA CGM closer to

full control of CEVA
Logistics..?? 15 March, 2019
Port, Customs and

Carriers come
together to promote
digitalisation 12 March,
2019
A farm in your
shipping container 11
March, 2019
International
Women’s Day 8 March,
2019
Marseille Fos port to

pilot blockchain
project 7 March, 2019
What is IMO 2020

and how you could
be affected.. 6 March, 2019
Once upon a time

there was a container
called Casey….. 4 March, 
2019
Mining, Energy
sectors are key to
South Africa’s
maritime growth 28
February, 2019
Latest News
CMA CGM closer to

full control of CEVA
Logistics..??
15 March, 2019
Port, Customs and

Carriers come
together to promote
digitalisation
12 March, 2019
A farm in your
shipping container
11 March, 2019
Marseille Fos port to

pilot blockchain
project
7 March, 2019
What is IMO 2020

and how you could
be affected..
6 March, 2019
Click here to read all

the useful, current,
selected and curated
news items of interest
to you.. 
Most Talked
About
Who are the readers

of this shipping and
freight blog..?? - 216
Comments
Difference between
House bill of lading
and Master bill of
lading - 170 Comments
What is a Switch Bill

of Lading and when
and why is it used..??
- 170 Comments
Difference between
Demurrage and
Detention - 125
Comments
Cargo Tracking Note

– what is it..?? - 92
Comments
Do you have an
educational
qualification in
Shipping, Freight or
Logistics - 88 Comments
What would you like

me to write about..??
- 85 Comments
How to calculate CBM

and Freight Ton - 70
Comments 
Difference between
bulk and break bulk -
66 Comments
What is a telex
release..?? - 60
Comments
Topics
Select Categ
Author’s Pick
These are my picks

from among the
hundreds of articles
on this site..
Difference between
Maritime, Shipping,
Freight, Logistics and
Supply Chain
Vintage Shipping –
the way it was done
What is a Bill of
Lading..??
How does demurrage,

detention and port
charges work..??

Pros and Cons of a

Consol Box
8 points to consider
before you sign a bill
of lading
6 points to help you

compete in the
shipping and freight
industry
Do I need cargo
insurance for my
shipment
Causes of Demurrage
and Detention
Parts of a Bill of
Lading
When does a Bill of

Lading become a
Contract of Carriage
Subscribe to
the blog
Subscribe below and

receive useful articles
and updates from this
blog for free..
Your Name


Valid Email Add
Subscribe
Free Guides
Below free guides are

available for your
use.. Please feel free
to download to seek
– learn – know –
grow..
Beginner’s Guide to
Importing
The Essential Guide

to Cargo Damage
Ensure
profitability
in sea freight
shipment..
00:00 00:00
Ads
Follow me on
Twitter
Tweets by
@shipfrtresource
Shipping and
@shipfrtresour
More profitable second
half helped Hapag-Lloyd
stay in the black
theloadstar.com/more-
profitabl…
More…
Hapa…
thelo…
Mar 22, 2019
Shipping and
Embed View on Twitter
Andrew Kennedy
Pamela Rosada Edward Cook
Logistics Manager, United
Foreign Trade Agent, Spain Shipping & Freight Student
Kingdom
My colleague and I both I can not thank you enough for all Hi Hariesh, I am currently
had slightly different ideas the help I received through this studying towards shipping
of the differences between blog. exams, just initial papers
a bill of lading and a sea about legal principles and
waybill. As a new Foreign trade agent (no general shipping business.
previous experience nor related
This resource from Hariesh education) when I joined the Your blog has helped me
Manaadiar is extremely industry, I might say you own to get more explanation of
helpful at breaking down 80% of the credit for my success. the tricky concepts that
such differences – every text books don’t always
day is a school day in Best wishes , it is so comforting

explain, in plain English.
logistics!
knowing there is people so

generous around the globe. Keep up the good work!
© 2008-2019 || All rights reserved || Hariesh Puthan House - Subscribe to this blog to SEEK - LEARN -
KNOW - GROW

Difference between transhipment and cargo in transit

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Difference between transhipment and cargo in transit

Uploaded by

Copyright:

Available Formats

23/03/2019 Difference between transhipment and cargo in transit..

What is the difference between

This article is based on a question from a user

What is Transhipment..?? – Transhipment is the act of

How is this different from Cargo in Transit..??

A cargo that is moved from an origin point across 

termed as “Cargo in Transit”..

Let me explain further..

There are several countries and commercial centers

Some examples of such countries would be

Ethiopia which uses the port of Djibouti in

Cargo in Transit move could be as below :

1. Cargo from Country A is moved to

could be a sea port) and Country C (another

Bills of Lading and Manifest for cargoes bound for

If this clause is not included in the bill of lading and

In some cases, shipping lines or government

Cargoes in transit may be moved via any mode of

The documentation and customs clearance

*** Transhipment is the act of off-loading a container

*** Cargo in Transit is the movement of cargo that is

1. discharged at a gateway seaport or

across international borders to another country where

Would love to hear your experiences with In

One blogger likes this.

Related Posts you may find interesting

Does Customs check

 Previous Article Next Article 

Be part of the discussion and share your views

Enter your comment here...

This site uses Akismet to reduce spam. Learn how

30 thoughts on “Difference between

A big tanks for writing this explicitly. And I’m

could we put statement of CARGO IN

Hi can the same vessel dock at port A port

It was an interesting sharing. If we want to

Hope to hear from you soon.

What is process import documention start to

I have a case where port of discharge (Callao

Appreciate your feedback.

I am not sure what the rules are in Peru, but

But under CIF, it is the responsibility of the

Trust this assists..

after unpacking the cntr , what is the place

Hi Hassan, neither.. The empty container

Liesbeth van Werkhoven

what are the risks for a carrier who issues the

Hello Liesbeth, CP is normally used in bulk

Destination in bill of lading is shown as a

Mustafa Yousef Abdulghafor Esmail

This article is very helpful. Thanks for sharing.

Glad to be of help Mustafa..

Please advise if a shipment is going to Iraq

The FPOD on shill bill filed with Customs

Hello Suresh, consignee can be in any

One question: on the BL, Where shall “cargo

Hi Meryam, it is normally mentioned in the

I find your blog very informative. Thanks for

(I still find this blog very interesting &

A warning though : co-loaders (Shpco,

It is then different from a “regular

it is therefore useful to have co-loaders

As a FF, this is a piece of information that we