Question

In: Operations Management

what is a direct shipment ? what is a transshipment ?

what is a direct shipment ? what is a transshipment ?

Solutions

Expert Solution

Direct Shipping, as the name suggests, is a method of delivering the goods directly from the supplier to the customer. As said, whenever a product is shipped directly, the seller only passes the delivery information to the supplier, and the rest is then managed by the supplier.

Practically, the cargo & shipment will go right from the factory directly to the customer without any stopping in the supply chain that could be a warehouse or any seller facility

Direct shipping happens when a vessel ships the cargo on one shipping service to its final destination while transshipment takes place when a container is transported by a vessel to an intermediate port.

The transshipment’ (transshipment) means the shipment of off-loading of goods from one location and loading to another (or one country to another) and from one carrier to another by mode of air, sea, road, either of two, or of all” .

There, it will be transferred onto another ship bound for its final destination.

Transshipment containers can be likened to passengers on transit at international airport hubs.
When a container vessel arrives at these hubs, it both unloads and takes onboard containers brought in by other ships.


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