What are the functions of transit port

"Transit port" is sometimes referred to as "transit place" and "transshipment port". It refers to the port where the goods go from the port of departure to the port of destination, pass through the third port in the journey, the means of transport stop, load and unload goods, supply and other operations, and the goods are reloaded, and the means of transport continue to be transported to the destination. There are both one-time transshipment by shipping companies and transshipment by shippers for tax-free reasons.

Formation of transit port
International transit port is gradually derived from the whole shipping trade pattern, which serves ocean transportation and surrounding areas with transshipment goods. The influencing factors of its formation mainly include the economic hinterland, the geographical location of the port, the water depth and facility conditions, the degree of freedom of the port and the operation cost and efficiency of the port. Among them, the decisive factor is the geographical location of economic hinterland and port, which together with the flow direction of international economy and trade (represented by routes) constitute the "point, line and surface" shipping geographical pattern. In addition, soft environments such as customs, import and export inspection, information transmission and government services are also important factors for the development of transit ports.

Status of transit ports 
The transfer port is generally the basic port. Therefore, the ships attached to the transfer port are generally large ships from the main international shipping routes and branch ships from and to the ports in the region.

Port of discharge / place of delivery = port of transit / port of destination?
The port of destination refers to the port of delivery by sea. When booking space, you generally only need to indicate the place of delivery. Whether to transfer or to which transfer port is decided by the shipping company.
In the case of multimodal transport, the port of discharge refers to the port of destination and the place of delivery refers to the place of destination. As different unloading ports will incur different transshipment charges, the unloading port must be indicated when booking space.

Role of transit port
1.Tax-free
What we want to say here is segmented transfer. Setting the transit port as a free trade port can achieve the purpose of tariff reduction and exemption. If Hong Kong is a free trade port, if the goods transit to Hong Kong; Goods not specially stipulated by the state can basically achieve the purpose of export tax exemption, and even have tax rebate subsidies.

2.Hold goods
This is about the transshipment of shipping companies. In international trade, due to various factors, midway goods cannot move forward and need to hold goods. The consignor may apply to the shipping company for detention before arriving at the transit port. The goods will be shipped to the port of destination after the trade problem is solved. This is often easier to operate than a direct ship. But it's also expensive.

About Transit Terms
In the process of international cargo transportation, due to geographical or political and economic reasons, goods need to be transshipped at some ports or other places. When booking space, it is necessary to limit the transit port. But it ultimately depends on whether the shipping company accepts transshipment here.
If it is accepted, the provisions on the transit port are clear. It is usually marked after the port of destination, which is generally connected through "via" or "w / T (with transshipment at...).

However, in practice, we can not directly treat the transit port as the port of destination, so as not to cause transportation errors and unnecessary losses. Because the transit port is not the final destination of goods.