Transshipment Allowed

"Transshipment Allowed" is a common term in international cargo transportation, meaning that during transit, the carrier is permitted to unload the goods from one means of conveyance and reload them onto another for continued carriage to the port of destination. This term usually appears in bills of lading, letters of credit, or sales contracts. Usage scenarios: When there is no direct route between the port of loading and the port of destination, or when the direct route is too costly or space is tight, the seller or buyer may choose to allow transshipment. Precautions: Transshipment may increase the risk of cargo damage, delay, and additional costs, so buyers often require "Transshipment Prohibited." Under payment by letter of credit, if the L/C does not expressly allow or prohibit transshipment, according to UCP600, banks will accept a transport document indicating that the goods may be transshipped. The difference from "Transshipment Prohibited" is that the former gives the carrier the right to transship, while the latter requires direct shipment. Foreign trade practitioners should clearly stipulate this in the contract based on route, time efficiency, cost, and cargo characteristics.