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New Trends in Sea Freight: Effective Use of Transit and Partial Transportation

New Trends in Sea Freight: Effective Use of Transit and Partial Transportation

New Trends in Sea Freight: Effective Use of Transit and Partial Transportation

Optimizing global logistics through strategic transit points and partial shipping solutions

April 10, 2023 Midas Global Team 3 min read

Although sea transportation accounts for an overwhelming majority of global trade, 9 countries in Africa, 14 countries in Europe, and 7 countries in Asia do not have access to the sea. Transit transportation refers to the practice of changing vehicles during a transportation journey from the country of origin to the destination due to economic, political, or physical reasons.

9
Landlocked Countries in Africa
14
Landlocked Countries in Europe
7
Landlocked Countries in Asia
12,000+
TEU Capacity Mega Ships

Transit transportation is a new business that allows for the expansion of the cake, rather than dividing it up.

Global Shipping Routes and Transit Points

The routes of large container ships (with a capacity of over 12,000 TEUs) typically follow an east-to-west line from Tokyo to Singapore, Dubai, Port Said, Malta, Marseille, Barcelona, Rotterdam, and Hamburg. However, increasing the number of ports for these large ships is not economically viable as it will prolong the journey time, so their cargo is typically transferred to smaller vessels at the main ports along the route. This allows buyers to obtain their goods at a more affordable cost.

Major East-West Shipping Route

T
Tokyo
S
Singapore
D
Dubai
PS
Port Said
R
Rotterdam

Strategic Transit Hubs for Landlocked Countries

Ports such as Djibouti, Tema, Dhaka, and Koper are crucial for landlocked countries. Logistics companies provide special solutions for transshipment operations at these ports. Additionally, the International Maritime Organization (IMO) establishes standards for landlocked countries to benefit from maritime transport and leads the preparation of international agreements.

Djibouti
Gateway for East African landlocked countries
Tema
Key transit point for West Africa
Koper
Central European transit hub
Dhaka
South Asian distribution center

Partial Transportation and Economic Efficiency

Partial transportation is also a common practice that frequently uses transit transportation due to economic reasons. Many island countries in the Atlantic have to procure their goods from relatively busy places such as Singapore and New Zealand. Cities like Dubai, Singapore, Barcelona, and Rotterdam have developed special handling procedures for partial transfers. These cities account for almost 50% of the world's partial transportation.

Transit Shipping Advantages
  • Cost-effective for landlocked countries
  • Access to mega-ship economies of scale
  • Flexible routing options
  • Strategic hub utilization
Partial Shipping Benefits
  • Economic for small to medium shipments
  • Access to specialized handling facilities
  • Consolidation cost savings
  • Flexible scheduling

Turkey's Position in Transit Transportation

"Despite Istanbul's ideal location to be a transit city, the 'big country syndrome' leads to a small share of the transit business. However, Istanbul is an ideal transit point for countries with access to the Black Sea."

Although Turkey has recently made transit regimes easier, there is currently no company that accepts the storage-free period application provided in developed countries for transit transportation. I hope that it will be understood that transit transportation is a new business that allows for the expansion of the cake, rather than dividing it up.

Conclusion: Future of Transit and Partial Shipping

The effective use of transit and partial transportation represents a significant trend in modern sea freight logistics. By leveraging strategic transit points and optimizing partial shipping operations, logistics providers can offer more cost-effective and efficient solutions for landlocked countries and smaller shipments. The continued development of specialized handling facilities in key hubs like Dubai, Singapore, and Rotterdam will further enhance global trade accessibility.

For countries like Turkey with strategic geographic positions, embracing transit transportation as an opportunity rather than a challenge could significantly boost their role in global logistics networks.

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