MULTIMODAL

TRANSPORTS
OPERATION
GROUP 1
MEMBERS
Nguyễn Thị Ngọc Ánh

Nguyễn Thị Thanh Thanh

Nguyễn Ngọc Mẫn Vy

Lý Trường Duy
TABLE OF CONTENTS

01 Different types of MTO

02 Different types of Operators

03 Relationship with intervening parties

04 Scope of Services performed by the MTO

 DIFFERENT
TYPES OF
MULTIMODAL
TRANSPORTS

Trường Duy
 Sea –Air
Combines the cost efficiency of ocean freight
with the speed of air freight.
Ideal for high-value and seasonal goods like
electronics, clothing, toys, and shoes.
After arriving at the port, air transport
ensures fast inland delivery, preserving
seasonality and quality.

Lý Trường Duy - IEC21PL006

 Road- Air
Merges road transport's flexibility with
air transport's speed.
Ideal for express delivery of small, high-
value packages, mail, and important
documents.
Roads handle initial consolidation and
final distribution, while airports serve as
hubs for swift long-haul shipments.

Lý Trường Duy - IEC21PL006

 Rail-Road
(Piggyback)
Combines the safety and speed of rail
with the flexibility of road transport,
known as Piggyback.
Trucks handle collection and distribution,
while rail covers the main route for
efficiency.

Lý Trường Duy - IEC21PL006

 Rail/ Road/ Inland waterway- Sea

Most common model for import-export transport.

Goods move by rail, road, or inland
waterway to the export seaport.
Sea transport to the import port.
Transported from the import port to the
consignee inland by road, rail, or inland
waterway transport.

Lý Trường Duy - IEC21PL006

 Land Bridge
The rail system is used as a link between a
foreign origin and destination.
The continental mass act as a bridge
between two maritime systems.
Rail transport is primarily used because it
provides faster long-distance service.

Lý Trường Duy - IEC21PL006

 Mini Bridge
Containers are transported from one
part of one country to another.
Then transported by rail to the second
port of destination.
The transportation follows a round-trip
bill of lading issued by the ocean carrier.

Lý Trường Duy - IEC21PL006

 DIFFERENT
TYPES OF
MULTIMODAL
TRANSPORT
OPPERATORS

Nguyễn Ngọc Mẫn Vy - IEC2302067

 FREIGHT FORWARDING
a service organization that transfers
goods from the point of origin to the
destination

NVOCCs
(Non-Vessel Operating Common Carrier)
A company that does not own a ship but provides
freight transportation services and issues its own
bills of lading, similar to an ocean carrier.

MT
(Management Transport)
Refers to the transportation method such as
sea, air, or road in the supply chain.

Nguyễn Ngọc Mẫn Vy - IEC2302067

 MAIN FUNCTIONS OF TYPES

Freight forwarder MTO

A company or agent that An MTO is a company that manages
arranges transportation, transport using different methods like
storage, packing, distribution, sea, road, and air to save costs and
and related advisory services for time. They also offer full logistics
goods. services, including shipping,
warehousing, delivery, and customs
procedures

Nguyễn Ngọc Mẫn Vy - IEC2302067

Key Differences Between Countries:
Asia:
Countries like Singapore, China, and Japan have
clear regulations on NVOCC and freight forwarding,
but the level of regulation varies.

Europe and the U.S.:

Regulations are strict, requiring licenses and
insurance, and compliance with agencies like FMC.

Vietnam:
Freight forwarding companies can take on the role
of NVOCC but must adhere to regulations and legal
procedures.

Nguyễn Ngọc Mẫn Vy - IEC2302067

Vessel Operating Multimodal Transport Operators (VO-MTOs):
These are shipowners who expand their business into multimodal
transport (MTO).
They typically rent land, rail, or air transport to complete the
multimodal transport contracts.

Non-Vessel Operating Multimodal Transport Operators (NVO-

MTOs):
This includes owners of non-maritime transport (cars, planes, trains)
and service providers like stevedores, warehousing, and freight
forwarders.
They rent transport modes they don’t own and offer multimodal
transport services, a common practice in developing countries like
Vietnam due to lower capital investment needs.
Nguyễn Ngọc Mẫn Vy - IEC2302067
 SCOPE OF
SERVICE
PERFORMED
BY THE MTO

Nguyễn Thị Ngọc Ánh - IEC2302066

 FCL (Full Container Load) is cargo for a single shipper or consignee.
The shipper or agents pack the container, which is then delivered to an

FCL MTO’s container yard.

Some MTOs also transport empty containers for packing and collect the
( Full Containers load) packed ones

LCL (Less than Container Load) occurs when the goods from a shipper are
LCL not enough to fill a full container.
(Less than Containers Load) LCL charges are based on the volume of goods.
The MTO (Multimodal Transport Operator) oversees the packing at the
Container Freight Station and unloading at the destination country's CFS.

CFS Container Freight Station also serves as an inland customs clearance

yard, where customs inspections take place.
( Container Freight Station ) The MTO ( Multimodal Transport Operation) can also carry out these
tasks by agreement with the shipper.

Container Yard is where containers are stored at the port or dry port before
CY being loaded onto or unloaded from ships.
( Container yard) CY service includes door-to-door or house-to-house transportation,
extending from the seller's facility to the customer's door, rather than
stopping only at the port.
Nguyễn Thị Ngọc Ánh - IEC2302066
 Once the MTO accepts the cargo from the shipper.
Booking of space The MTO reserves space on various transport modes to carry the goods
to the final destination

Consolidation agents issue separate bills of lading, combine small

shipments into one container, and hand it over to the MTO.
Consolidation This allows for FCL rate for the entire container. Upon arrival, shipments
are released to the consignee with the bill of lading.
This process reduces costs & optimizes space.

The MTO receives the cargo, they must arrange necessary guarantees for
the customs authorities of the transit countries.
Liaison with customs The MTO may assign agents at the borders to ensure compliance with
customs procedures and legal requirements, avoiding delays and
additional costs.

Nguyễn Thị Ngọc Ánh - IEC2302066

 The MTO is responsible for protecting the cargo until delivery to the
consignee and supervises the loading and unloading.
Insurance coverage Insurance covers the MTO's liability for loss or damage to the cargo.
Some MTOs also arrange insurance on behalf of the shipper or
consignee.

When containers are leased by the MTO or their agents/partners,

Return of leased container they must return containers to the respective depots.

During transport, MTOs often send cargo location updates via fax or
email to the shipper or consignee.
Experienced MTOs offer tracking systems on their website to check
Communication
cargo status.
This service applies to containerized, other types of cargo, and bulk
cargo.

Nguyễn Thị Ngọc Ánh - IEC2302066

 RELATIONSHIP
WITH
INTERVENING
PARTIES

Nguyễn Thị Thanh Thanh - IEC21PL037

 Relationship with intervening parties
Multimodal Transport Operator (MTO) – A crucial
intermediary role.
Connecting stakeholders in the supply chain.
Ensuring efficient transportation of goods.
Managing the journey from origin to destination.
The participants are divided into three main
groups:

Carriers
Non-Carriers (NVOCC)
Other Parties

Nguyễn Thị Thanh Thanh - IEC21PL037

 MTO’s Relationship with Carriers
Ship Owners
Provide sea transport; MTO books container slots
or charters vessels.

Road Transport Operators

Deliver goods from warehouses to ports and vice
versa.
Railways
Cost-effective solution for domestic routes.

Airlines
Role of MTO
Used for urgent or high-value cargo.
Connect, negotiate freight rates, and book
transport. Inland Waterway Transport Operators
Manage multimodal transport to ensure Support transportation via rivers and
on-time delivery. canals.
Nguyễn Thị Thanh Thanh - IEC21PL037
 MTO’s Relationship with Non-Carriers

Supporting Service Providers

Container Terminals: Transshipment, loading/unloading, and
container storage.

Warehouses: Temporary storage before further transportation.

Container Freight Stations: Consolidation/deconsolidation of LCL

shipments to optimize costs.

Packaging Service Providers: Ensuring cargo safety during

transportation.

Role of MTO:
Coordination, optimization of warehousing,
consolidation, and packaging services to ensure cargo
readiness for transportation.

Nguyễn Thị Thanh Thanh - IEC21PL037

 MTO’s Relationship with Other Parties
Key Stakeholders
Banks
Support international financial transactions (L/C).

Insurance Companies
Ensure cargo and liability coverage.

Foreign Exchange Control Authorities

Regulate foreign currency payments.

Customs Authorities
Assist with declarations, tax payments, and legal compliance.

Government Agencies
Inspect special goods (food, pharmaceuticals).
Role of MTO:
Acts as a coordinator, ensuring smooth financial transactions, cargo protection, regulatory
compliance, and optimized multimodal transport operations.

Nguyễn Thị Thanh Thanh - IEC21PL037

Thank You