Inter model and multi model shipment

To obtain the best routing is not the same as getting the

best total shipping cost. Using a combination of different
transport carriers is sometimes better to achieve the best
total shipping cost for door to door movements. However,
it requires more logistics coordination and hands-on
involvement. Using a single transport carrier to provide a
door to door movement, may achieve the best routing. It
requires less logistics coordination and paperwork. When
shipping using a variety of forms of transportation, you
may have run into the terms intermodal and multimodal.
Sometimes these terms are incorrectly used
interchangeably.

When using a carrier for your cargo, understanding the

difference and communicating your wants properly to
your providers can help alleviate any misunderstandings.
Let us take a look at the difference between intermodal
shipping and multimodal shipping.

Intermodal Shipping

Simply put, intermodal shipping is when your shipments

are handled by several different shipping companies.
Intermodal is defined as the movement of cargo from
origin to destination by several modes of transport where
each of these modes have a different transport carrier
responsible, each with its own independent contract.
Multiple carriers during a single journey. Each leg of the
shipment is be handled by a separate transport carrier. The
Shipper will have several contracts, one with each
transport carrier to handle their specific leg of the
shipment.

To obtain the best routing is not the same as getting the

best total shipping cost. Using a combination of different
transport carriers is sometimes better to achieve the best
total shipping cost for door to door movements. However,
it requires more logistics coordination and hands-on
involvement. Using a single transport carrier to provide a
door to door movement, may achieve the best routing. It
requires less logistics coordination and paperwork.

Let us say that you need to move a large amount of cargo

to another site. Both of these sites are land locked and on
different continents. This could mean in order to move
your cargo, you will contact a trucking company to
transport your shipment to a rail yard. Once at the rail
yard, you will move your cargo to a shipping port. The
cargo will be loaded on to a ship and moved overseas to
another port- where it will be unloaded and moved to
another rail carrier. Finally the shipment will be trucked
from the rail yard to your destination location.

When using intermodal shipping, each leg of that

shipment will be handled by a separate company. This
means that you will have to have several contracts, one
with each carrier to handle their specific leg of the
shipment.

There are some advantages to doing this. You can

negotiate terms separately with each company. This also
means more overhead for you, as you will need to keep
track of several contracts with different providers. You
may also be responsible for handling coordination of
delays, as one company will not be aware of the delays
that another company might be having.

Advantages of Intermodal transportation are associated

with:
a) Shippers can choose carriers to take advantage of lower
rates for each transport leg;

b) Gain flexibility and specialized handing of loading and

unloading goods at different ports;

c)Reduce their carbon footprint by choosing

environmentally friendly carriers;
d) Increased security of the products being transported;
and

e) Shippers have more access to equipment and can better

control capacity and selection of transit schedules.

Multimodal Shipping

Multimodal is defined as the movement of cargo from

origin to destination by several modes of transport where
each of these modes have a different transport carrier
responsible, However under a single contract or bill of
lading. Single carrier during a single journey. The same
transport carrier is responsible for moving the shipment in
all legs, in all modes. In simple terms, Multimodal is
using various modes of transport but with one transport .

The differentiation between multimodal and intermodal

lies in the contract/ bill of lading and transport carrier
responsibility / liability of the movement.

If we look back to our example above, multimodal

shipping would be where one company or one contract
would handle all legs of the journey. This means that the
same company is going to responsible for moving your
shipment in all legs, in all modes.
This can be set up in a couple of ways. You could go with
a company that has all of these modes of transport
available to them. Another way to set up a single contract
for yourself is to use an agent. An agent would do all the
negotiation on the back end for you while you only have
one contract to keep track of. The agent would also be
responsible for coordinating loading, unloading, and
delays.

This method holds several advantages, the first being less

overhead for you. Companies that handle multimodal
shipping will be able to handle delays in one leg of the
shipment in relation to the other legs without you needing
to be involved. This method provides a one stop shop
service, so every single aspect is handled by one provider,
giving you that ease and peace of mind.

Advantages of Multimodal transportation are associated

with:
a) Shipment tracking efficiency able to monitor with one
transport carrier from door to door delivery;

b) Access to remote parts of the world with responsibility

and liability of the movement with one transport carrier;

c) Efficiency in delivery time; and

d) Minimization of logistics coordination expenses of a
shipper

In summary, in terms of transportation, intermodality is

related as a operation where the cargo is transported since
its origin up to its destiny, by several modes, with one
different contract by segment (its implies in partial
responsability of each transport provider).
Multimodal (what MacAndrews offers) is the transport
operation where despite the use of several modes, a single
provider (and a single contract) assumes the entire
responsibility since the cargo origin until its destiny.

The advantage of both Intermodal and t is given by the

most efficient combination of multiple transport modes,
optimising lead times, reducing inventory costs and
keeping the level of freight costs under control. This
combination results in increased environmental
sustainability, reducing the transportation

Regardless of your choice with Intermodal or Multimodal,

Shippers require a transportation management system
(TMS) to ensure door to door tracking visibility, ability to
perform routing scenarios to determine the best overall
total shipping cost with the best overall routing transit
time. The transportation management system must have
capabilities for coordination with and between transport
carriers and suppliers, along with freight rates and
contract management.

Cargo transportation by railway allows for cargo transport over long distances; it is suitable for
transporting large and heavy cargo and is also the cheapest form of transport. Cargo is transported
by railways in various wagons: high-sided wagons, covered and tank wagons, intermodal railcars,
grain cars and marine containers. Cargo transportation by railway makes it possible to transport
standard and oversized cargo.
Cargo transport by railway has the following advantages over other means of transportation:
 transport of oversized cargos and cargos that do not comply with technical loading
conditions (the kind of cargo that is complicated to transport by road);
 the possibility to transport various goods at any time of year;

 an optimal solution for large cargos, taking into consideration that one rail transport carries
many more goods compared to other means of transport;

 a way to reduce freight costs;

 the possibility to transport cargo to distant countries and cities.

Cargo transportation by railway includes:

1.prompt analysis of forwarding orders;
2.organization of carriage depending on dates,
route and type of cargo;
3.transport of multimodal and intermodal cargo
by railways;
4.cargo loading and fastening;
5.tracking of cargo, wagons and containers;
 6.completion of legal documents, declaration of
cargo, processing of customs and transport
documents;
7.cargo insurance;
8.customs formalities;
9.representation of customers at railway stations;
10. cargo warehousing and preparation for
further transportation;
11. Competent advice on all issues connected to
rail logistics.
Key benefits of rail freight include
 Reliable transit times and schedules
 Railroads are the most efficient form of land transportation. One
train can haul the equivalent of over 400 trucks
 Fast and cost-effective deliveries over long distances. Typically
over 500 miles
 Traditionally, rail has a strong safety record.
 Helps in alleviating road congestion, thus lowering emissions

Advantages and Disadvantages of Railway Transport

Advantages:
1. Dependable:
The greatest advantage of the railway transport is that it is the most
dependable mode of transport as it is the least affected by weather
conditions such as rains, fog etc. compared to other modes of
transport.

2. Better Organised:
The rail transport is better organised than any other form of transport.
It has fixed routes and schedules. Its service is more certain, uniform
and regular as compared to other modes of transport.

3. High Speed over Long Distances:

Its speed over long distances is more than any other mode of
transport, except airways. Thus, it is the best choice for long distance
traffic.

4. Suitable for Bulky and Heavy Goods:

Railway transport is economical, quicker and best suited for carrying
heavy and bulky goods over long distances.

5. Cheaper Transport:
It is a cheaper mode of transport as compared to other modes of
transport. Most of the working expenses of railways are in the nature
of fixed costs. Every increase in the railway traffic is followed by a
decrease in the average cost. Rail transport is economical in the use of
labour also as one driver and one guard are sufficient to carry much
more load than the motor transport.

6. Safety:
Railway is the safest form of transport. The chances of accidents and
breakdowns of railways are minimum as compared to other modes of
transport. Moreover, the traffic can be protected from the exposure to
sun, rains, snow etc.

7. Larger Capacity:
The carrying capacity of the railways is extremely large. Moreover, its
capacity is elastic which can easily be increased by adding more
wagons.

8. Public Welfare:
It is the largest public undertaking in the country. Railways perform
many public utility services. Their charges are based on ‘charge what
the traffic can bear’ principle which helps the poor. In fact, it is
national necessity.

9. Administrative Facilities of Government:

Railways provide administrative facilities to the Government. The
defence forces and the public servants drive their mobility primarily
from the railways.

10. Employment Opportunities:

The railways provide greater employment opportunities for both
skilled and unskilled labour. Over 16 lakh persons are depending upon
railways for their livelihood.

Disadvantages:
Although railway transport has many advantages, it suffers
from certain serious limitations:
1. Huge Capital Outlay:
The railway requires is large investment of capital. The cost of
construction, maintenance and overhead expenses are very high as
compared to other modes of transport. Moreover, the investments are
specific and immobile. In case the traffic is not sufficient, the
investments may mean wastage of huge resources.

2. Lack of Flexibility:
Another disadvantage of railway transport is its inflexibility. Its routes
and timings cannot be adjusted to individual requirements.

3. Lack of Door to Door Service:

Rail transport cannot provide door to door service as it is tied to a
particular track. Intermediate loading or unloading involves greater
cost, more wear and tear and wastage of time.

The time and cost of terminal operations are a great disadvantage of

rail transport.

4. Monopoly:
As railways require huge capital outlay, they may give rise to
monopolies and work against public interest at large. Even if
controlled and managed by the government, lack of competition may
breed inefficiency and high costs.

5. Unsuitable for Short Distance and Small Loads:

Railway transport is unsuitable and uneconomical for short distance
and small traffic of goods.
6. Booking Formalities:
It involves much time and labour in booking and taking delivery of
goods through railways as compared to motor transport.

7. No Rural Service:
Because of huge capital requirements and traffic, railways cannot be
operated economically in rural areas. Thus, large rural areas have no
railway service even today. This causes much inconvenience to the
people living in rural areas.

8. Under-utilized Capacity:
The railway must have full load for its ideal and economic operation.
As it has a very large carrying capacity, under-utilization of its
capacity, in most of the regions, is a great financial problem and loss to
the economy.

9. Centralized Administration:
Being the public utility service railways has monopoly position and as
such there is centralized administration. Local authorities fail to meet
the personal requirements of the people as compared to roadways.