CARM: What all importers need to know about CARM

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What you need to know about transshipments

     Truck and containers

A “transshipment” occurs each time your freight is moved from one container to another, or from one vessel to another during the shipment’s journey.

For example, your ocean freight from South Africa may be transshipped via Rotterdam; your air freight from Hong Kong via Chicago; your truck freight to Texas via Nashville, Tennessee.

Transshipping freight is not necessarily a problem, nor is it always avoidable, but there are risks you should be aware of:

  • The more transshipments, the longer the transit time.
  • Each transshipment requires your freight to be physically unloaded and reloaded into the next conveyance.  More handling means more risk of loss, damage, theft or pilferage.
  • For every transshipment point, there is a cut-off date which must be met. Failing to meet this deadline can result in substantial delays in the transit time.

Quick Tip #14
Don’t just insure the value of the goods

When insuring your freight, you are fully entitled to value your goods at a price above the base cost. Valuation of goods may include all freight charges, related costs, plus 10% (or more) to cover the administrative burden of processing a claim and to cover the insured’s profit. Since duty is still payable on damaged goods, make sure you insure the amount of duty as well.

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