TRANSIT
A conveyance / vessel may reach a port but may not unload the goods at that port. It may halt at the port for any other purpose such as repairs, replenishment of supplies, refuelling etc. Once the purpose is over, it may start sailing to the destination port. In this case two ports are involved; 1) the halting port (known as transit port) and 2) the destination port (called as port of clearance).
Such temporary stay at a port other than a destination port is called Transit.
In transit, the goods remain in the same vessel and consequently reach the port of clearance.
TRANSHIPMENT
In transhipment, however, the vessel after reaching an intermediate port, transfers the goods to another vessel and the second vessel into which the goods are transferred (loaded) from the 1st vessel, carries the goods to the destination port.
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