MULTI MODALISM

CHAPTER 11
 INTRODUCTION
Multi-modalism / Combined Transport Operation:
Process of operating a door-to-door/
warehouse-to-warehouse service for the
shipper, involving 2 or more forms of
transport, with the merchandise being
conveyed in the same unitized
form for the entire transit.
 INTRODUCTION

Any mode of transport: road, rail, inland

waterway, sea or air – may be involved.
International distribution network is becoming
more integrated & MM will play major role.
Traditional seaport to seaport operation is no
longer acceptable.
Integrated operation involving
carriers, suppliers, consignor
and consignee.
 INTRODUCTION

Production of product in different location or

countries.
Global operation with no time or trade
barriers.
MM infrastructure offers low-cost global
distribution, fast transit, dedicated
services.
 MM BENEFIT FOR SHIPPERS
Reliable service, frequent & competitively priced.
• Goods arrive within scheduled.

Dedicated & integrated schedules

• Benefit companies that has global
network & operate on JIT basis.
• Equipped with EDI.

Tailor made service

• Tailor made for certain trade/commodities
• Use high-tech purpose-built equipment.
 MM BENEFIT FOR SHIPPERS

Minimum documentation.
Used of through BOL, through rate.
Faster & rapid transit facilitate earlier payments.
Encourages usage of common code, standard,
practice on international scale.
Goods arrive in good & better
condition.
 FORMS OF MM

Containerization
Method of distributing merchandise in unitized
form.
Suitable for transportation by rail, road, air,
canal & sea.
Block movement of container, through
interconnect land & maritime terminals.
 FORMS OF MM

Land Bridge
Overland transport between following and/or
preceding sea transport of goods and/or
containers.
Could be:
LB via trailer/truck – road/sea/road
LB via pallet/IATA container –
road/sea/air/road
 FORMS OF MM
Piggy Back Operation
Most recent development in MM. Involved
usage of road, rail & vehicular ferries.
Road trailers are conveyed by vehicular ferries
from one port to another.
Might be loaded to railway wagon for carriage
by scheduled train, to certain location.
Then continue journey by road to consignee.
 FORMS OF MM

Piggy Back Advantage:

 Fast transit time through scheduled road, sea
& rail services.
 No loading/unloading delay at port.
 Cheaper cost.
 Less wear & tear on trailer
equipment.
 FORMS OF MM
Inland Waterways
 Sea shipping is integrated with inland
waterways (river/canal).
 Employ barge carriers for voyages between
port & inland waterway connections.
 Barge carrying vessel: specialized sea - going
ship which can carry barges.
 Permitsseparation of the ship from the barge,
which handled the cargo to consignee.
 Obstacles to Multi-modalism

1. Conflicts of interest
 Potential conflicts of interest between
different parties involved in long
international supply chains.
 Each party anxious to protect their
position & market share
 Also between government of
different country.
 Obstacles to Multi-modalism

2. Lack of money
 Growth of MM has been slowed by
the widespread shortage of public
investment funds.
3. Regulatory impediments
 Despite widespread deregulation of transport
has taken place over the last few years, there
are still many regulatory impediments to MM.
 Both within individual countries and at border
crossings.
 Obstacles to Multi-modalism

4. Security concerns
 Still
confusion about who is
responsible when things go wrong.
 Many large MM operators prepared to absorb
the risk – take cargo insurance.
 However, it is difficult for smaller operators to
absorb risk.
 Have an important psychological effect on
customer attitudes towards MM.
 Obstacles to Multi-modalism

5. Insufficient knowledge of user requirements

 Because MM services are provided by
competing private carriers, there is relatively
little discussion or sharing of information about
customer needs.
 Organizationspaid very little attention to
customer requirements.
 Not fully aware of the types of service for
which there is an emerging customer demand