A multimodal transportation system improves commercial efficiency by altering the relationship between international carriers and trading partners. Because of globalisation, businesses require international door-to-door transportation. They require these services to be provided under a single responsibility framework, which not only improves control but also results in lower delivery costs.
A multi-modal transportation system is seen as a game changer because it is quite effective in addressing a large portion of cargo mobility concerns. The best rates and transit time can be capitalised by integrating public and private transportation modalities into one transportation system.
What exactly is multi-modal transportation?
In contrast to commodities forwarding, multimodal transportation entails transporting items from one location to another using numerous modes of transportation. The system involving multiple modes of transportation is operated by a single carrier. All modes of travel, including air, sea, road, and rail, are covered by a single bill and are owned or controlled by the operator.
Advantages of this transport system
This sort of transport system is planned and coordinated as a single operation, reducing time and money lost as well as the danger of cargo damage at trans-shipment locations.
Because of the multi-modal transportation system, the market is physically shrunk because items are moved quickly from one location to another. It has aided in shortening the distance between the source materials and the customers.
There is no need to issue separate documents for each form of transportation because one operator manages all modes.
In terms of products transportation, the consignee only needs to deal with the MTO (multimodal transport operator). Multi-modal transportation reduces the need to connect with each entity independently.
Multimodal Transport Operator
The operator in the multimodal system can refer to a variety of entities participating in transportation. They take on the responsibilities of an operator if they have signed a multi-modal contract. They also provide the merchant with multi-modal shipment documents. Shipping lines, for example, are transport operators because they provide rail and road transport via Carrier Haulage (either through their own infrastructure or through a third party).
Freight forwarders can also be operators because, in many circumstances, they act as carriers, providing transportation via rail, sea, and road. This is also done through a third party or through their own infrastructure. NVOCC operators are also multimodal transport operators because, in most situations, the NVOCC combines the services of a goods forwarder and a shipping line. NVOCC also manages the risks associated with such services.
Many international shipping companies are active in providing multimodal transportation services. During the transportation process, their well-trained team of professionals looks after the cargo. They also monitor and coordinate with the many counteragents participating in the process. This not only ensures reliable and safe freight delivery, but also saves clients time and money on cargo transportation.