In international logistics, multimodal transport is an effective tool that allows for increased flexibility and speed of cargo delivery by utilizing the advantages of various modes of transportation. Multimodal transports are defined as transports that use multiple modes of transport but are governed by a single contract.
This distinguishes them from intermodal transports, which also use multiple modes of transport but allow the client to enter into contracts with several companies. In intermodal transport, multiple modes of transport are used as well, but responsibility is shared equally among all participants.
Today, multimodal transports are the most popular approach for transporting products, raw materials, and goods, as they allow for the optimization of logistics processes and the formation of advantageous and effective solutions for shippers and receivers.
The term "multimodal transport" is legally defined in Ukraine by the Multimodal Transport Law No. 4258 of October 23, 2020. This is a method of cargo delivery that uses two or more modes of transportation: road, rail, sea, and air. It involves the transportation of goods using a combination (sequential) of at least two different types of transport. For example, a product might first be transported by truck to a port, then by ship to another country, and from there by rail to the recipient's warehouse.
The main distinction of this logistic method is that instead of negotiating separately with each individual carrier, the customer signs a contract with an operator who is responsible for all organizational and legal aspects, including agreements with subcontractors. In other words, the core idea of this method is that the logistics of cargo delivery is managed by a single operator.
Under the conditions of globalization and increasing volumes of international trade, such international logistics transportation is becoming increasingly in demand, as it offers a crucial advantage for the client – the ability to negotiate with one company, rather than several, to organize the prompt and safe delivery of cargo.
Multimodal transportation may include the following types of transport:
The main advantage of multimodal transportation for the client is that one logistics company handles all contracts and shipments between subcontractors. This means no extra time or effort is needed from the customer, helping to reduce both financial and time costs.
However, the multimodal approach also has its drawbacks. Comparison of pros and cons:
| Advantages | Disadvantages |
|---|---|
| Cost reduction The customer signs a contract with one company instead of many, reducing the overall budget. |
Additional expenses Sometimes multimodal transport is more expensive due to payments to multiple carriers, extra handling, and coordination. |
| Route optimization Cheaper transport modes like sea or rail can be used to cut costs. |
Complex coordination Requires smooth interaction between different carriers, which can be difficult in practice. |
| Shorter delivery times Combining various transport modes can significantly speed up delivery. |
Possible delivery delays Chains are more complex: a delay at one stage affects the whole delivery. |
| Saving time and resources The contractor, not the customer, manages all agreements and coordination. |
High qualifications required Organization demands skilled logisticians and coordinators. |
| Flexible routes Allows cargo delivery even to hard-to-reach regions by combining modes. |
Less control over cargo movement Real-time tracking is more difficult than with one transport mode. |
| Consolidated responsibility A single operator is responsible for the entire chain. |
Higher risk of damage or loss Each transfer between modes increases risks, especially for fragile or valuable goods. |
Most drawbacks are linked to insufficient qualification of logistics providers — which makes it crucial to choose experienced contractors for multimodal transport.
Organizing multimodal transportation is complex for the logistics manager but highly beneficial for the customer. This delivery option is advisable in several cases when it is necessary to:
For China, multimodal transportation is one of the most popular methods of cargo delivery, as the country is the largest global exporter and has an extensive network of production facilities in all regions. This determines the presence of a developed transportation infrastructure and wide opportunities for transportation by road, rail, air, and sea. The use of multimodal transportation allows for the prompt delivery of goods over long distances to Europe, North and Latin America, Asia, and other regions. This is especially relevant for the transportation of electronics, clothing, industrial goods, etc.
The company Diffreight can offer comprehensive solutions for organizing multimodal cargo transportation to optimize the client's logistics processes. To place an order, you can submit a request on the website, and a manager will contact the customer as quickly as possible to clarify the details. DiFFreight specialists provide a full range of services, including both the purchase of goods in China and the development of optimal routes considering the characteristics of the cargo and the needs of the business, up to the preparation of customs documents and ensuring monitoring at all stages of delivery. DiFFreight logistics experts are professionals in organizing multimodal transportation; they understand its specifics and features, allowing them to handle tasks of any complexity.
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