Factor Impact
Substitution Small ships instead of large ships (better asset utilization).
Water instead of land (modal shift).
Network expansion More links and wider coverage (more traffic and throughput).
Intersection and relay (transit between long distance services).
Imposed Lack of port infrastructure (capacity unavailable for large ships).
Lack of traffic (not enough traffic to justify a large ship call).
Congestion (potential delays for large ships).
High port costs (port call charges versus volume).
Cost trade off Savings in ship cost vs. additional port handling (advantages of ‘offshore’ locations).
Level of service Transit Time (varied; depend on the port pairs).
Frequency (higher; more port calls).
Reliability (less; more potential for delays).
Source: adapted from Ashar (2009).
Factors behind Transshipment
There are several network and technical factors behind the usage of transshipment as a maritime shipping strategy. From a port authority perspective, transshipment can also have a lot of appeal since it can lead to rapid surges in traffic and therefore additional revenue. This is particularly attractive for ports that show limited expansion opportunities due to a saturated or highly competitive hinterland. Also, limited investments are required for hinterland access and the transshipment port therefore combines limited externalities with a higher traffic level.