What is transshipment in shipping?
Ocean carriers run hub-and-spoke networks: large mainline vessels call at a few hub ports, and smaller feeder ships connect them to regional ports. A container may be discharged at a hub such as Singapore or Algeciras, wait in the terminal yard, and then be loaded onto the next vessel. The bill of lading covers the whole voyage, from port of loading to port of discharge.
Transshipment is not customs transit. At a transshipment hub the cargo usually stays under the carrier's control and is not cleared into that country, whereas transit moves goods through a country under a customs procedure. It also differs from multimodal transport, in which the cargo changes mode. Letters of credit often state whether transshipment is allowed, so check before booking.
Each transshipment adds time and the risk of a missed connection, when the container is rolled to a later vessel at the hub. The arrival date at the final port depends on the connecting vessel, not on when the first ship reached the hub, so tracking needs the second vessel's name and voyage. When comparing services, weigh direct transit times against transshipment routes and their reliability.