Transshipment hub selection from a shipper's and freight forwarder's perspective.

Abstract

Transshipment hub selection becomes increasingly important to the global logistics community. From the perspectives of shippers and freight forwarders, a selection must align with cost control strategy and sustain service reliability across cooperative service providers. This paper assesses the selection with the options of both sea and air transports, and from the influence of country of origin of the company. Critical factors of transshipment hub selection, both qualitative and quantitative, are identified through focus group discussions. Relative importance of these factors is determined based on collective views of logistics stakeholders. The competitiveness of transshipment hubs is then assessed using an AHP approach. Our analysis is based on the historical implementation of direct transportation link policy between Mainland China and Taiwan. With this empirical work, the finding suggests that even the spawn of other nearby ports with shorter transport distance and closer proximity to cargo sources, there remain overriding factors such as customs regulations & government policies and connectivity that a transshipment hub is preferred.