Type
Essay
Pages
2 pages
Word Count
5749 words
School
Lake Forest College
Course Code
logistics

Multimodal

July 1, 2020
I
Multimodal Transport
April 2015
I
Multimodal Transport
April 2015
Multimodal transport is the articulation between
different modes of transport, in order to more
rapidly and effectively transfer operations of
materials and goods
Multimodal transport is that in which it is necessary
to use more than one type of vehicle to transport
the goods from his place of origin to their final
destination, but mediating a single contract of
carriage.
What is Multimodal transport?
Multimodal transport is the articulation between
different modes of transport, in order to more
rapidly and effectively transfer operations of
materials and goods
Multimodal transport is that in which it is necessary
to use more than one type of vehicle to transport
the goods from his place of origin to their final
destination, but mediating a single contract of
carriage.
Within this overall framework, we distinguish
intermodal transport (using different types of
transport but using a single measure of load) and
combined transport (the responsibility is assumed
by different operators).
Multimodal transport is effected by a multimodal
transport operator who holds a multimodal
transportation contract and assumes responsibility
for compliance as carrier.
Within this overall framework, we distinguish
intermodal transport (using different types of
transport but using a single measure of load) and
combined transport (the responsibility is assumed
by different operators).
Multimodal transport is effected by a multimodal
transport operator who holds a multimodal
transportation contract and assumes responsibility
for compliance as carrier.
Combined freight transport can be organized in
different ways. In general, trucks cover short
distances between the loading area and the
transshipment point respectively between the
place of arrival and the recipient. Long-distance
haulage is conducted by other means of
transport such as train, ship or even plane.
Combined freight transport can be organized in
different ways. In general, trucks cover short
distances between the loading area and the
transshipment point respectively between the
place of arrival and the recipient. Long-distance
haulage is conducted by other means of
transport such as train, ship or even plane.
"multimodal transport operator"
(MTO)
"Multimodal transport operator'
means any person who on his
own behalf or through another
person acting on his behalf
concludes a multimodal
transport contract and who
assumes responsibility for the
performance of the contract."
"Multimodal transport operator'
means any person who on his
own behalf or through another
person acting on his behalf
concludes a multimodal
transport contract and who
assumes responsibility for the
performance of the contract."
The main features of a multimodal
transport are
The carriage of goods by two or more modes of
transport, under one contract
One document and one responsible party (MTO) for the
entire carriage who might subcontract the performance
of some
The terms "combined transport" and "intermodal
transport" are often used to describe the carriage of
goods by two or more modes of transport.
The carriage of goods by two or more modes of
transport, under one contract
One document and one responsible party (MTO) for the
entire carriage who might subcontract the performance
of some
The terms "combined transport" and "intermodal
transport" are often used to describe the carriage of
goods by two or more modes of transport.
Therefore, in case of damage or loss, each
company will only bear responsibility for only its
own stage in line with the rules applicable to the
transport contract.
The merits of multimodal
transportation
Minimizes time loss at trans-shipment points Provides
faster transit of goods
The faster transit of goods
Reduces burden of documentation and formalities
Saves cost The savings in costs
Reduces cost of exports The inherent advantages of
multimodal transport system will help to reduce the
cost of exports and improve their competitive position
in the international market.
Minimizes time loss at trans-shipment points Provides
faster transit of goods
The faster transit of goods
Reduces burden of documentation and formalities
Saves cost The savings in costs
Reduces cost of exports The inherent advantages of
multimodal transport system will help to reduce the
cost of exports and improve their competitive position
in the international market.
Origin
Multimodal transport was developed in connection
with the "container revolution" of the 1960s and 70s.
The emergence of the container technology and of the
multimodal transport concept came from and
facilitated growing international trade. Trade and
transport are inextricably linked: efficient transport
services are a prerequisite to successful trading.
Multimodal transport was developed in connection
with the "container revolution" of the 1960s and 70s.
The emergence of the container technology and of the
multimodal transport concept came from and
facilitated growing international trade. Trade and
transport are inextricably linked: efficient transport
services are a prerequisite to successful trading.
Regarding combined container transport,
standardized loading units are transshipped
along different means of transport. In doing so,
various combinations of land, water, and air
transportation are applied in practice.
Combined container transport
Regarding combined container transport,
standardized loading units are transshipped
along different means of transport. In doing so,
various combinations of land, water, and air
transportation are applied in practice.
The rolling road usually describes carriage of
whole trucks – including both tractor and
trailer – on low floor trains.
In this regard, the second alternative that
contributes to additional cost savings is
forwarding of trailers without the tractor as it
reduces transport weight and labor costs.
However, this option requires a second tractor
at the place of arrival.
Rolling road
The rolling road usually describes carriage of
whole trucks – including both tractor and
trailer – on low floor trains.
In this regard, the second alternative that
contributes to additional cost savings is
forwarding of trailers without the tractor as it
reduces transport weight and labor costs.
However, this option requires a second tractor
at the place of arrival.
Roll-on roll-off traffic means the carriage of
freight vehicles on ships over a certain distance.
A rarely applied option is LASH-transportation. In
the course of this, an inland water vessel,
commonly known as LASH barge, is carried by the
barge carrier – a seagoing vessel.
Trailer shipment (rail transport of trailers) refers
to a combination of rail and road haulage.
Roll-on roll-off traffic means the carriage of
freight vehicles on ships over a certain distance.
A rarely applied option is LASH-transportation. In
the course of this, an inland water vessel,
commonly known as LASH barge, is carried by the
barge carrier – a seagoing vessel.
Trailer shipment (rail transport of trailers) refers
to a combination of rail and road haulage.
The introduced multimodal modes of
transport basically combine the flexibility of
trucks with economies of scale of such means
of transport that are destined for long-
distance forwarding.
However, additional handling processes are
cost and time consuming. The benefits of
utilizing different means of transport ideally
outweigh or even exceed the expenses. This
mainly depends on the distance to be
covered, the efficiency of transshipment
points and the goods to be conveyed.
The introduced multimodal modes of
transport basically combine the flexibility of
trucks with economies of scale of such means
of transport that are destined for long-
distance forwarding.
However, additional handling processes are
cost and time consuming. The benefits of
utilizing different means of transport ideally
outweigh or even exceed the expenses. This
mainly depends on the distance to be
covered, the efficiency of transshipment
points and the goods to be conveyed.
Prior to Containerisation MULTIPLE HANDLING
All cargoes other than bulk commodities were moved package by package
and piece by piece with multiple handling, resulting in damage, pilferage and
time loss.
What is Containerisation
It is a system of inter-modal cargo transport using
standard ISO containers that can be loaded on
containerships , railroad cars/trains and trucks
At the beginning containers were made of Steel frames with
either Aluminium , Steel or Fibre Glass.
The 3 common standard lengths 20’ ( 6.1M) , 40’ ( 12.2M ) or 45’
(13.7M)
Container capacity of Ships, Yards , Terminals are measured in TEU
= Twenty foot Equivalent Units or FEU = Forty foot Equivalent Units .
It is a system of inter-modal cargo transport using
standard ISO containers that can be loaded on
containerships , railroad cars/trains and trucks
At the beginning containers were made of Steel frames with
either Aluminium , Steel or Fibre Glass.
The 3 common standard lengths 20’ ( 6.1M) , 40’ ( 12.2M ) or 45’
(13.7M)
Container capacity of Ships, Yards , Terminals are measured in TEU
= Twenty foot Equivalent Units or FEU = Forty foot Equivalent Units .
With the advent of Containerisation
Container Vessel
The exterior dimensions of all containers conforming to ISO standards are 20 feet long x
8 feet wide x 8 feet 6 inches high or 9 feet 6 inches high for high cube containers.
VENTILATED CONTAINER
20’ Ideal for cargo requiring ventilation
BULK CONTAINER
20’ For bulk cargoes
Types of Containers
The exterior dimensions of all containers conforming to ISO standards are 20 feet long x
8 feet wide x 8 feet 6 inches high or 9 feet 6 inches high for high cube containers.
VENTILATED CONTAINER
20’ Ideal for cargo requiring ventilation
BULK CONTAINER
20’ For bulk cargoes
Types of Containers ..contd.
TANK CONTAINER
20' For transportation of liquid
chemicals and food stuffs
DRY FREIGHT CONTAINER
20' and 40' General purpose
container
HIGH CUBE CONTAINER
40' and 45' 9'6" High - For over
height and voluminous cargo
TANK CONTAINER
20' For transportation of liquid
chemicals and food stuffs
DRY FREIGHT CONTAINER
20' and 40' General purpose
container
HIGH CUBE CONTAINER
40' and 45' 9'6" High - For over
height and voluminous cargo
Types of Containers ..contd..
OPEN TOP CONTAINER
20' and 40' Removable
tarpaulin for top loading of
over height cargo
FLAT RACK
20' and 40' For over width and
heavy cargo
PLATFORM
20' and 40' For extra length and
heavy cargo
OPEN TOP CONTAINER
20' and 40' Removable
tarpaulin for top loading of
over height cargo
FLAT RACK
20' and 40' For over width and
heavy cargo
PLATFORM
20' and 40' For extra length and
heavy cargo
Types of Containers ..contd…
INSULATED CONTAINER
20' and 40' For additional
insulation of sensitive cargo
REEFER CONTAINER
20' and 40’ & 40’HQ
For Temperature controlled cargo.
cooling, freezing or heating of
foods or chemicals
INSULATED CONTAINER
20' and 40' For additional
insulation of sensitive cargo
REEFER CONTAINER
20' and 40’ & 40’HQ
For Temperature controlled cargo.
cooling, freezing or heating of
foods or chemicals
PLAYERS IN THE CONTAINER SUPPLY CHAIN
CARGO SHIPS
CARGO SHIPS
FREIGHT TRAINS
FREIGHT TRAINS
CARGO SHIPSCARGO SHIPS FREIGHT TRAINSFREIGHT TRAINS
INLAND CONTAINER DEPOTINLAND CONTAINER DEPOT TRUCKSTRUCKS
LOGISTICS
Logistics is the management of the flow of resources between the point
of origin and the point of consumption in order to meet some
requirements.
For example, of customers or corporations. The resources managed in
logistics can include physical items, such as food, materials, equipment,
liquids, and staff, as well as abstract items, such as time, information,
particles, and energy.
Logistics is the management of the flow of resources between the point
of origin and the point of consumption in order to meet some
requirements.
For example, of customers or corporations. The resources managed in
logistics can include physical items, such as food, materials, equipment,
liquids, and staff, as well as abstract items, such as time, information,
particles, and energy.
DefinitionDefinitionDefinitionDefinition
The task of coordinating material flow and
information flow across the supply chain.
LOGISTICS PROCESS
The Supply Chain management
A supply chain is a group of partners who
collectively convert a basic commodity
(upstream) into a finished product
(downstream) that is valued by end-
customers, and who manage returns at
each stage.
A supply chain is a group of partners who
collectively convert a basic commodity
(upstream) into a finished product
(downstream) that is valued by end-
customers, and who manage returns at
each stage.
DefinitionDefinitionDefinitionDefinition Planning and controlling all of the processes
that link partners in a supply chain together in
order to serve needs of the end-customer.
MANUFACTURING
PROCUREMENT
OUTPUT/ FINISHED
GOODS
OUTPUT/ FINISHED
GOODS
WAREHOUSING
TRANSPORTATION
DISTRIBUTION
DISTRIBUTION
LABORATORIES RETAILERS
CUSTOMERS
MEDICAL STORES
Components of Logistics Management
Management actions
Planning Implementation Control
Raw
materials
In-process
inventory
Finished
goods
Natural
resources
Human
resources
Time and
place utility
Competitive
advantage
Logistics management
Suppliers Customers
Inputs into
logistics
Outputs of
logistics
31
Copyright © 2001 by The
McGraw-Hill Companies, Inc.
All rights reserved.
Raw
materials
In-process
inventory
Finished
goods
Human
resources
Financial
resources
Information
resources
Time and
place utility
Efficient
movement
to customer
Proprietary
asset
Suppliers Customers
Customer service
Demand forecasting
Inventory management
Logistics communications
Material handling
Order processing
Parts and service support
Plant & warehouse site selection
Procurement
Packaging
Reverse logistics
Traffic and transportation
Warehousing and storage
Logistics activities
The aim of logistics:
Provide the right product
In the right condition
In the right quantity
At the right place
At the right time.
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Provide the right product
In the right condition
In the right quantity
At the right place
At the right time.
Major Participants in an International
Logistics Transaction
Domestic
seller
Export
facilitators
Inland
transportation
carrier
Domestic
port or terminal
of exit
Domestic
bank
Domestic
government
agencies
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Domestic
port or terminal
of exit
Foreign port
or terminal
of entry
International
carrier
(air, water)
Foreign inland
transportation
carrier
Foreign
buyer
Foreign
government
agencies
Foreign
bank
Information
flow
Product
movement
Logistics Costs as a Percentage of GDP
Selected Countries
Logistics Costs as a Percentage of GDP —Selected Countries
Country Percentage Country Percentage
Mexico 14.9 Portugal 12.7
Ireland 14.2 Canada 12.0
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Ireland 14.2 Canada 12.0
Singapore 13.9 Japan 11.3
Hong Kong 13.7 Netherlands 11.3
Germany 13.0 Italy 11.2
Taiwan 13.0 UK 10.6
Denmark 12.8 U.S. 10.5
Source: Compiled by Jacques Roy, HEC - Montréal
The Global Logistics Environment
Customer
service
Other
activities Inventory
Competition
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Logistics
executive
activities
Warehousing
and storage
Transportation
Packaging
Inventory
Competition
Exporting Companies
Export distributor
Customs house broker
International freight forwarder
Trading company
Non-vessel-operating common
carrier (NVOCC)
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Export distributor
Customs house broker
International freight forwarder
Trading company
Non-vessel-operating common
carrier (NVOCC)
How NVOCCs Work a
LCL shipper LCL shipper LCL shipperLCL shipper LCL shipper
NVOCC
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NVOCC
Bill of lading
Less than container load
(LCL) shipments Full container
How NVOCCs Work (cont.)
NVOCC
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NVOCC
Consignee Consignee ConsigneeConsignee Consignee
Less than container load
(LCL) shipments Full container Bill of lading
Factors Influencing
Transportation Costs
Product-related
factors
density
stowability
ease or difficulty of
handling
liability
Market-related factors
Degree of competition
Location of markets
Government regulation
Balance or imbalance of
freight traffic
Seasonality
Domestic versus
international movement
15/04/2015 Foreign Trade University 39
Product-related
factors
density
stowability
ease or difficulty of
handling
liability
Market-related factors
Degree of competition
Location of markets
Government regulation
Balance or imbalance of
freight traffic
Seasonality
Domestic versus
international movement
How a Letter of Credit Works
1) Seller asks buyer for
letter of credit
(L/C).
2) Buyer asks its bank
to issue L/C in
accordance with
sellers terms.
3) After approving
buyers credit line,
buyers bank
notifies sellers
bank that it has
issued L/C.
4) Sellers bank either adds
confirmation (guarantees
payment to seller) or
simply advises seller that
L/C has been issued.
5) Seller makes
shipment, presents
6) Sellers bank
examines and
7) Buyers bank examines
and approves
8) On receipt of funds,
sellers bank credits