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If a shipment is traveling a long way from the port to the final destination by truck, the shipment will likely go to a warehouse, and transload the cargo into a truck to avoid expensive per diem charges. Transloading is the process of moving a shipment from one mode of transport to another form, for example, moving from an ocean container to truck or rail.

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The most common use of transloading is when a container is picked up from port, brought to a warehouse, unloading it, and then reloading the cargo into a truck for final delivery.

If a shipment is going to multiple locations, a “transload fee” that gets applied is typically to cover the labor for de-consolidation at a warehouse, palletizing the freight and loading it into the trucks for final delivery. Transloading is common for shipments that have multiple warehouse locations that require cargo be palletized.

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