Advantages of Multimodal Transportation In Your Trading

Multimodal transport system helps improve trading efficiency, transforming the relation between international carriers and trading partners. Due to globalization, companies require nothing less than international door-to-door transportation. They require these services under a single liability system which not only leads to better control but also results in low delivery costs.  

Multi-modal transport system is considered a game changer as it is quite effective in solving a major part of cargo mobility issues. By combining state and private transportation modes into one transport system, the best rates and transit time can be capitalized.

What is Multi-modal Transport?

Compared to freight forwarding, multimodal transportation involves carrying of goods from one point to another with the help of multiple transportation modes. One carrier operates the system that involves more than one mode of transport. All modes of transport including air, sea, road and rail are covered under one bill and are under the ownership or control of the operator.

Benefits of this transport system

• This type of transport system is planned and coordinated as a single operation which reduces the loss of time and money and also minimizes the risk of damage to the cargo at trans-shipment points
• Due to multi-modal transport system, the market is reduced physically as goods are transited quickly from one point to another. It has helped reduce the distance between the source materials and customers
• There is no need to issue multiple documents for each transport segment as one operator handles all modes
• Consignee just needs to be deal with the MTO (multimodal transport operator) as far as transportation of goods are concerned. Multi-modal transport eliminates the need to establish connection with all the entities separately

Operator of Multimodal Transport

Several entities involved in transportation can be termed as the operator in the multimodal system. If they have signed a multi-modal contract, they assume the responsibility of an operator. They also issue multi-modal transport documents to the merchant. For instance, shipping lines can be termed as the transport operators because they undertake rail and road mode of transport under Carrier Haulage (either from their own infrastructure or through a third party).

Freight forwarders can also be operators because in many cases, they take up the role of the carrier and offer transportation through rail, sea and road. This is also done either via 3rd party or their own infrastructure. NVOCC operators can also be considered multimodal transport operators because in majority of cases, the NVOCC undertakes the services of a freight forwarder and shipping line combined. NVOCC also handles the risks that come with such services.

Many international shipping companies are involved in offering services related to multimodal transportation. Their well-trained team of experts takes care of the cargo during the transportation procedure. They also monitor and establish co-ordination with the involved counteragents involved in the process. This not only ensures reliable and safe delivery of the cargo but also helps the clients save time and money for cargo movement.