What transhipment means for wine, beer and spirits trade

When transporting beverages like wine, beer and spirits, the concept of transhipment needs to be considered as part of the shipment planning process. It affects not only the time it takes for shipments to reach their destination but also the potential risks and costs involved. For those in the wine, beer and spirits industry, understanding transhipment and its role in global shipping routes can help in making the right decisions for shipments.

What is transhipment?

Transhipment is the process of transferring shipping containers from one vessel to another, during their journey to their destination. Unlike direct shipments, which are moved from the port of origin straight to the port of discharge, transhipment involves a temporary stop at an intermediate port. This is where the container is transferred to a different vessel to continue its journey. This is often necessary when there isn't a direct service connecting the origin and destination, or when shipping lines are optimizing their routes for cost-efficiency.

For example, if you are shipping wine from Australia to the UK, you may need to use a transhipment service. Not every port in Australia has a direct shipping route to every port in the UK. So, your container might need to be transferred at an intermediate port like Singapore before reaching its destination. Or you will need to explore extra trucking miles or rail services at origin or destination, to move the container to a port that does have a direct service. 

Transhipment is not the ideal service type for the wine and beer shipments because of the increased exposure to temperature and humidity along the transport route. Though it can allow shippers to reach more markets by utilizing key hubs strategically, even if it does add complexity to the journey.

Why does transhipment happen?

Transhipment occurs for several reasons, sometimes by choice and sometimes because of the macro environment.  For wine, beer and spirits shippers, here’s the main points to know about why transhipment services exist:

Global connectivity: Many destinations around the world do not have direct shipping routes connecting them. To ensure a shipment of wines, beers or spirits can reach its intended market, it may need to be transported through larger, more connected ports. Transhipment hubs link less accessible ports with major global routes.

Economies of scale: Shipping companies aim to minimize costs and maximize efficiency. By consolidating smaller shipments at a transhipment hub, vessels can achieve economies of scale. Feeder vessels are used to move containers from smaller ports to larger ones.

Optimizing shipping routes: Weather conditions, geopolitical factors and market demand can impact shipping routes. Transhipment allows shipping lines to adjust their schedules and reroute shipments when needed based on the prevailing conditions.  This helps them to optimize the use of vessels in their fleet and minimize risk. 

Fleet and vessel availability: In some cases, certain vessels are only suited for specific sea routes or port sizes. Transhipment helps in managing fleet logistics efficiently, transferring shipments between vessels that can navigate the specific conditions of each segment of the journey.

Major transhipment hubs in wine, beer and spirits shipping

To understand transhipment, it’s important to identify the major hubs where these transfers are likely to take place. These hubs play a critical role in connecting the world’s wine, beer and spirits supply chains to the market.

1. Singapore: One of the most significant transhipment hubs globally, Singapore handles a substantial amount of wine, beer and spirits coming from regions like Australia and South America. With its strategic location and well-developed port infrastructure, Singapore is a pivotal gateway for shipments heading to Europe, the Middle East and North America. In 2023, Singapore port handled around 39 million TEUs.
2. Rotterdam: Often called the “Gateway to Europe,” Rotterdam is a primary port for transhipment, especially for alcoholic beverages arriving from outside of Europe. Like Singapore, wines from Australia or South America often pass through Rotterdam before heading to their final destination within the European continent. The throughput of TEUs in 2023 was recorded as 13.4 million. 
3. Port of Antwerp: Close to Rotterdam, Antwerp also serves as a crucial hub for transhipment in Europe. It is particularly significant for beer shipments due to its established cold chain capabilities, which help maintain quality standards during transit. The port is able to handle container ships holding 23,000 TEU’s and has a rail terminal on-site for fast onward transport.
4. Dubai (Jebel Ali Port): Jebel Ali is a key transhipment hub for the Middle East, serving as a connecting point between Asian origins and European and African destinations. Dubai’s central location makes it ideal for handling shipments of spirits and wine, especially when rerouting is needed. 
5. Hong Kong: For wine, Hong Kong is a significant hub, especially for shipments bound for East Asia. The port's extensive facilities and its status as a major entry point into China make it an essential transhipment hub for wine shipments. This port handled 14.40 million TEUs in 2023.

For current information about the most common ports used in the shipping of wine, beer and spirits, take a look at our port updates webpage here.

Major shipping routes involving transhipment for wine, beer and spirits

The trade of wine, beer and spirits spans the globe, with several major shipping routes involving transhipment hubs. Here’s a look at some common routes:

• Australia/New Zealand to Europe: Shipments that are not direct, can travel via Southeast Asia, stopping at major transhipment hubs like Singapore before continuing to European ports such as Rotterdam or Antwerp. This route is particularly relevant for wine, as these regions are major producers.
• South America to North America and Europe: Wine from countries like Argentina and Chile frequently use the Panama Canal for access to North American and European markets. Transhipment may occur in Panama or Caribbean ports, depending on the final destination.
• Europe to Asia: Spirits such as Scotch whisky and French wine are in high demand in East Asia. These products traditionally travelled through the Suez Canal, with transhipment hubs like Dubai and Singapore playing significant roles in connecting the journey.
• North America to Asia: Spirits, especially bourbon and craft beer, are increasingly popular in Asian markets. Shipments leaving the U.S. West Coast frequently pass through transhipment hubs like Hong Kong or Busan in South Korea, providing flexibility and access to a wide range of East Asian destinations.

To keep up-to-date with the trade routes your shipments travel on, visit Hillebrand Gori’s trade lane update page for the latest information.

Is transhipment a good option for wine, beer and spirits shipments?

For the wine, beer and spirits industry, transhipment presents both opportunities and challenges:

Opportunities:

• Broader market access: Transhipment allows producers to reach markets that do not have direct shipping services. This means that a craft beer from New Zealand or wine from a small vineyard in Chile can be available to consumers in emerging markets worldwide.
• Flexible Routes: Transhipment allows for route adjustments if there is disruption to a usually direct shipping service. For instance, if a direct route is unavailable due to port congestion or weather issues, a shipment can be rerouted through another hub.

Challenges:

• Increased transit time: Adding an intermediate stop naturally increases the transit time of shipments. Wine and beer are sensitive beverages, especially for those with specific aging or consumption periods. 
• Risk of damage or loss: Transhipment involves additional handling, which can increase the risk of damage to fragile items like glass bottles of wine, beer and spirits. Temperature fluctuations during transfer period, as well as along the route, can also affect the quality of these alcoholic beverages if proper handling procedures are not considered.
• Regulatory complexities: Customs regulations and requirements vary around the world. This can add complexity to the shipping process, especially when moving alcohol through various jurisdictions.

Working with Hillebrand Gori for transhipments

Hillebrand Gori specializes in the transportation of wine, beer and spirits. We understand the unique challenges that come with managing transhipments, especially for these sensitive alcoholic beverages. With a focus on providing end-to-end solutions, we can support importers and producers with their shipments, including managing temperature control.

Our vast global network means shipments are moved efficiently, even when transhipment is necessary. With connections to major transhipment hubs worldwide, they can navigate complex routes effectively. We provide real-time tracking though the myHillebrandGori portal as well as temperature monitoring, for comprehensive visibility throughout the journey. This helps keep you informed about your shipments.

Alcoholic beverage transport can be complex, especially when it comes to transhipment. By leveraging major hubs, optimizing routes and working with expert logistics partners like us, importers can send shipments easily.

Reviewed by Hillebrand Gori