What are Multimodal Transportations and What are Their Advantages

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.

Concept and Types of Multimodal Transport

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:

1. Aviation. The fastest delivery option, which is its key advantage. Most often combined with rail or road transport, which delivers the cargo to the final destination.
2. Water. A longer transportation method compared to the previous one. However, this type of cargo transport allows for the delivery of large shipments. It is also suitable for bulky goods.
3. Rail. Also provides the ability to transport large volumes of cargo. The use of this type of transport is limited by the existing railway routes.
4. Road. Suitable for less bulky cargo than with rail or water transport. Ensures the direct delivery of goods to the customer.

Advantages of Multimodal Transportation

The main advantage of multimodal transportation for the client lies in the fact that all issues related to contracts and shipments between contractors are handled by a single logistics company, thus there is no need to spend additional time and effort, allowing for a reduction in both financial and time costs.

Overall, multimodal transportation is chosen for a number of reasons:

• cost reduction. The customer enters into a single agreement with one company, rather than multiple contracts with several companies, which helps to minimize expenses. Additionally, routes can be optimized, and more cost-effective modes of transport, such as sea or rail, can be used to reduce expenses;
• reduction in delivery time. If the customer is responsible for delivering the cargo independently, they need to negotiate with several companies. When using multimodal transportation, the contractor, not the customer, handles the delivery. The carrier company independently negotiates with all parties involved in the transportation of goods (many such companies have pre-existing agreements with the actual service providers), which significantly saves the client's time. Additionally, combining various modes of transport allows for a substantial reduction in delivery times;
• flexibility and optimization of cargo transportation. In some cases, transporting goods from point A to point B using a single mode of transport can be too costly. Multimodal transportation allows the route to be divided into several segments so that goods are delivered by different types of transport, which not only saves money but also speeds up cargo delivery. It also enables the creation of optimal routes to any, even hard-to-reach regions, and the ability to change routes if obstacles arise along the way;
• consolidation of responsibility. When organizing multimodal international transportation, a contract is concluded with a single logistics operator, who assumes full responsibility for the safety of the cargo at all stages of transportation;
• security and reliability. The contractor bears financial responsibility for the safety of the goods, which is stipulated in the contract between the parties.

When to Choose Multimodal Transportation

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:

• arrange transportation to remote or hard-to-reach regions, for example, delivery of goods from China to Ukraine by sea and road transport;
• delegate responsibility for communication between contractors who directly carry out transportation by various modes of transport;
• minimize transportation costs;
• reduce delivery time.

Multimodal Transportation from China

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.

Delivery of goods from China to Ukraine

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How to Order Multimodal Transportation at DiFFreight

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.