LOGISTICS BLOG

ASK LOGISTICS EXPERTS - ASK SUPPLY CHAIN PROFESSIONALS
Post your Logistics and Supply Chain Questions to:

Click Here to Ask Advice from Logistics and Supply Chain Professionals

The Logistics Blog is seeking logistics experts and supply chain professionals to write about: Legal Issues, Employment, Supply Chain Management, Logistics, Air Freight, Ocean Freight, Supply Chain, Procurement, Technology. This is an excellent opportunity for you to share your expertise and build a reputation within the freight, logistics and supply chain industry.  Please contact: Nick Matyas Logistics Portal Editor  nmatyas@logisticsportal.org  or call the Logistics Portal at: 1+ (657) 215-1833

Ask the Experts Ask the Experts
Blogs »
Difference between Intermodal shipping and Multimodal shipping

Difference between Intermodal shipping and Multimodal shipping

Getting the best transit time routing is not the same as getting the best total shipping cost.

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.

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.

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 bill of lading.

The differentiation between multimodal and intermodal lies in the contract/ bill of lading and transport carrier responsibility / liability of the movement.

According to DHL, "The advantage of both Intermodal and Multimodal Transport is given by the most efficient combination of multiple transport modes, optimizing lead times, reducing inventory costs and keeping the level of freight costs under control. This combination results in increased environmental sustainability, reducing the transportation carbon footprint".

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.

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.

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 rate / contract management.

NEED BETTER LOGISTICS PLANNING / VISIBILITY AND COLLABORATION / RATE MANAGEMENT - TAKE A DEMO


  • Comments