Both transloading and cross docking are essential in the modern supply chain. While each is used to process and forward freight, they serve very different roles. Here’s what you need to know:
What is a transloader and transloading?
Transloaders help process shipping containers at facilities near the port and direct cargo to destinations further down the supply chain. They enable intermodal transport for freight and optimize packaging to enable expedited handling.
Let’s say your container arrives at the Port of Los Angeles. Once removed from the ship, it will be transferred to a nearby transloader. There, its freight is unloaded, sorted, palletized, and shrink wrapped for further shipping down the supply chain. In some instances, cargo in intermodal containers will be forwarded from the container ship direct to another mode of transport by the transloader without unloading and processing.
Transloaders can also provide value added services, including weighing, customs management, or transferring to a different chassis (as is the case at break-in-gauge points along rail lines). Unlike cross-docking, transloaders will palletize and store goods until they are shipped on to the next transport mode.
Transloaders are valuable for handling freight at various breakpoints along the supply chain. A transloader can help pack raw material from overseas — coal, grain, or iron — then unload and store it stateside. They are essential for getting cargo that is optimized for ocean travel ready for transport on roads and rails. Transloaders will also temporarily warehouse cargo until it’s ready to be forwarded to the next destination.
What is cross-docking?
Cross-docking facilities are vital redirection points for cargo that limit the need for handling and warehouse storage. They serve as junctions for inbound and outbound modes of transport. Cross-docking is especially valuable for moving both raw and finished goods from manufacturers direct to end users like retailers, next level manufacturers, or customers. This limits the need for storing cargo on site by allowing supply chains to operate quickly and with flexibility.
How does cross-docking work? Instead of unloading, sorting, screening, and reloading cargo at the port or docking terminal, cross-docking facilities quickly stage and transfer freight received from one truck to another truck for forwarding. Advanced logistics management software, in conjunction with IoT tech and smart containers, track and document cargo to get it onto the right truck faster, usually without unpacking or re-palletizing.
Cross dockers are located toward the end of the supply chain. Unlike transloaders, cross-docking facilities don’t deal with container ships — they receive cargo shipped on trucks and redirect it to other trucks. Effective cross-docking is essential for getting perishable cargo to market quickly.
Why the distinction matters
Both transloaders and cross-docking facilities can be used within the same supply chain to achieve streamlined fulfillment. At the port, a shipping container could be processed by a transloader, then shipped by freight-forwarder to a cross docker who directs cargo to retail stores or regional warehouses. Knowing how each piece operates allows logistics pros to plan their operations to meet tight deadlines more consistently.
By allowing a retailer to ship only the amount they need, a cross-docking facility can help a company manage demand with close margins. Transloading facilities can work with local port-side warehousing facilities to feed cargo to cross dockers as demand fluctuates, rather than waiting for resupply from overseas factories. Using these facilities properly allows a company to manage freight smarter, which can cut warehousing costs, expedite last-mile fulfillment to a customer or end user, and much more.
As the supply chain evolves to meet new customer demand and expectations, each piece in this puzzle becomes more essential. Advanced transloading and cross-docking are helping companies meet demand in creative new ways. A more nimble supply chain means smarter and more specialized facilities. Having a partner at the port to help navigate this space is indispensable for hitting deadlines with ease.