Multimodal Transport Operations

UNESCAP
Transport & Tourism Division
 Chapter objectives

• On completion of this chapter you should be

able to:
– Define the term “Multimodal transport”.
– State the advantages of multimodal transport for
forwarders.
– Describe the different forms of multimodal transport
operations and operators.
– State the relationship of a Multimodal Transport
Operator (MTO) with the intervening parties.
– Describe the scope of services covered by an MTO.
 UNIMODAL TRANSPORT

Truck Port Ship Port Rail

Warehouse Road Port Sea Port Rail Warehouse

 MULTIMODAL TRANSPORT

Truck Port Ship Port Rail

Warehouse Road Port Sea Port Rail Warehouse

Freight Forwarder/MTO
 Multimodal transport defined

• Multimodal transport, as understood by many,

refers to a transport system usually operated
by one carrier with more than one mode of
transport under the control or ownership of one
operator. It involves the use of more than one
means of transport such as a combination of
truck, railcar, aeroplane or ship in succession
to each other e.g. a container line which
operates both a ship and a rail system of
double stack trains.
 Multimodal transport

ƒ More efficient ways of getting

goods to market
ƒ New ways of doing old business
ƒ Container and ICT applications
ƒ Using a combination of transport
modes more effectively
 Advantages of multimodal transport

• Minimises time loss at trans-shipment

points
– Multimodal transport operator maintains his own
communication links and coordinates interchange and onward
carriage smoothly at trans-shipment points.
• Provides faster transit of goods
– The faster transit of goods made possible under multimodal
transport reduces the disadvantages of distance from markets
and the tying-up of capital.
• Reduces burden of documentation and
formalities
– The burden of issuing multiple documentation and other
formalities connected with each segmented of the transport
chain is reduced to a minimum.
 …cont. Advantages of multimodal
transport
• Saves cost
– The savings in costs resulting from these advantages are
usually reflected in the through freight rates charged by the
multimodal transport operator and also in the cost of cargo
insurance.
• Establishes only one agency to deal with
– The consignor has to deal with only the multimodal transport
operator in all matters relating to the transportation of his
goods, including the settlement of claims for loss of goods, or
damage to them, or delay in delivery at destination.
• Reduces cost of exports
– The inherent advantages of multimodal transport system will
help to reduce the cost of exports and improve their
competitive position in the international market.
 Forms of multimodal transport
operations
• Land-Sea-Land
– E.g. An empty container is picked up from the line’s container yard in
Singapore and trucked to shipper’s factory in Johore (Malaysia) for
stuffing, thereafter the FCL is trucked to Singapore.
– Ocean transportation from Singapore to New York.
– Truck from vessel to rail-head New York
– Rail from New York to rail-head Chicago
– Truck from Chicago rail-head to consignee’s warehouse.
• There can be several additional links, for instance, if the container
was carried by rail from, say, Kuala Lumpur to Singapore or, the
vessel sailed to USA west coast instead.
• Where LCL cargo is concerned, the individual shipments would be
delivered to the freight forwarder’s CFS or the shipping line’s CFS
and consolidated into a FCL which, in Chicago, is trucked to the
CFS, where it is picked-up by the consignee’s truck.
 Road/Air/Road

• A combination of air carriage with truck transport is a

frequent method of multimodal service. Several airlines
are building up a number of trucking hubs in Europe to
act as focal points for road-based feeder operations.

• Many airlines provide road service to cities which they

either find uneconomical to service by air, or to which
they do not enjoy landing rights. This road
transportation is often effected with their own vehicles,
and to and from their own facilities, but on occasion
they do also use highway common carriers.
 Sea/Air/Sea

• This combines the economy of sea transport and the

speed of air transport and is becoming increasingly
popular in several international trade routes like the Far
East - Europe route. The economics of this
combination mode favour high value items like
electronics, electrical goods, computers and
photographic equipment as well as goods with high
seasonal demand such as fashion wear and toys.
• This multimodal operation is particularly applicable
where the route to be covered combines large
distances via land and water, and where transit time is
important.
 …cont. Sea/Air/Sea

ORIGIN MODE VIA MODE DESTINATION OPERATION

Asia Ocean Dubai Air Europe Sea/Air

Asia Ocean Seattle Air Europe Sea/Air

Europe Ocean E. Canada Air W. Canada Sea/Air

Nepal Air Singapore Sea Europe Air/Sea

 Rail/road/inland waterways/sea

• Common use
when goods are
moving from an
inland centre to
the seaport in the
country of origin or
from the seaport to
an inland centre in
the country of
destination.
 Mini-bridge

• This involves the movement of containers, under a

through bill of lading issued by an ocean carrier, by a
vessel from a port in one country to a port in another
country and then by rail to a second port city in the
second country, terminating at the rail carrier's terminal
in the second port city.

• The mini-bridge offers the consignor a through

container rate inclusive of rail freight up to the final port
city in the country of destination. The railways are paid
a flat rate per container by the ocean carrier for the rail
transit. This system is in operation on certain routes
covering the trade between the United States and the
Far East, United States / Europe, United States /
Australia, etc.
 Land bridge

• This system concerns itself with shipment of containers

overland as a part of a sea-land or a sea-land-sea
route. In this case, the railways are paid a flat rate by
the ocean carrier who issues the through bill of lading.

• This system is in operation for the movement of

containers on certain important international routes
such as: between Europe or the Middle East and the
Far East via the Trans-Siberian land bridge; and
between Europe and the Far East via the Atlantic and
Pacific coasts of the U.S.A., continental U.S.A. being
used as a land bridge.
 Ro-Ro (Roll on –Roll off)

• This mode combines

different means of
transportation (sea and
road), and is used most
often with new
automobiles, which are
shipped by sea and them
simply driven off the
vessel to the importer’s
warehouse. Heavy and
over-dimensional cargo is
also suitable for Ro-Ro
transport.
 L.A.S.H. (Lighter Abroad Ship)

• It must be noted that

LASH vessels are
expensive, and
furthermore it is
necessary to check on
the availability of the
special handling
facilities necessary in
the ports of
destination.
 Piggyback

• The goods are packed

in trailers and hauled by
tractors to the railway
station. At the station,
the trailers are moved
onto railway flat cars
and the transport
tractors, which stay
behind, are then
disconnected. At
destination, tractors
again haul the trailers to
the warehouses of the
consignee.
 …cont. Piggyback

• This is a system of unitised

multimodal land
transportation, a
combination of transport by
road and rail. It has become
popular in Latin American
and European countries
because it combines the
speed and reliability of rail
on long hauls with the
door-to-door flexibility of
road transport for collection
and delivery.
 Sea train

• Geographically
separated rail systems
can be connected by the
use of an ocean
carrier.Typically these
vessels are long and thin
and consist of one main
deck running the length
of the ship. They are
quicker at loading trains
than general cargo
vessels since the train’s
carriages do not need to
be detached from one
another.
 Conclusion

• In actual practice, several other combination modes

may be used depending upon the trade routes,
trans-shipment points and the availability, of different
modes of transport.
• New infrastructural developments are being proposed
the world over to create a seamless flow of traffic e.g.
the channel tunnel linking England and France, the
Oresund bridge linking Sweden and Denmark… As
these projects have become reality so the flow of traffic
changes. Other changes such as global warming pose
the potential for new routes to open up via the northern
sea between Russia’s northern border and the north
pole.
 …Cont. Conclusion

• An MTO should have the knowledge and skill

to organise the transportation of goods through
different modes of transport. He should be
aware of what is happening in the areas of
technological development, political stability of
countries, congestion of routes or mergers of
operators.
• Since the function of the MTO derives from the
needs of the shipper, he must be able to offer a
service which covers a wide geographical area,
either through an in-house branch network or
by means of reputable agency arrangements.