We present an improved interval Vogel’s approximation algorithm for the initial feasible solution of a transhipment problem involving fully interval integer numbers in this paper. The interval variant of MODI algorithm is used to measure the optimality of the interval feasible solution. In a transportation problem, shipments are only permitted between source-sink pairs, while in a transhipment problem, shipments can be permitted both between sources and sinks. Furthermore, there may be points where units of a substance may be transferred from a source to a sink. To demonstrate the effectiveness of the proposed algorithm, a numerical example is given.