Multi Modal Transport System
The multi model transports system or the combined transport is a system of delivering cargo from the place of origin to its destination using different transport modes under on carriage of goods contract. The contract includes two or more modes include sea, air, rail inland water ways and road. This facilitate the international trade by smoothing the delivery process by providing a single window for transport arrangement.
The Article 1 of United Nations Convention on International Multi modal Transport of Goods, (Geneva, 24 May 1980) states International multi modal transport as “The carriage of goods by at least two different modes of transport on the basis of a multi modal transport contract from a place in one country at which the goods are taken in charge by the multi modal transport operator to a place designated for delivery situated in a different country. The operations of pick-up and delivery of goods carried out in the performance of a uni modal transport contract, as defined in such contract, shall not be considered as international multi modal transport”.
The multi modal transport operator is responsible to arrange the carriage and there is no necessity for one firm to own means of transport in every transport mode. Yet they will coordinate and arrange the freight until reach the destination.
For the safety of transparency of the operators role, United Nations Convention on International Multi modal Transport of Goods, describes the "Multi modal transport operator" as “Any person who on his own behalf or through another person acting on his behalf concludes a multi modal transport contract and who acts as a principal, not as an agent or on behalf of the consignor or of the carriers participating in the multi modal transport operations, and who assumes responsibility for the performance of the contract”.
Using a multi model transport system provides several benefits to the users. Few are as described in below
Advantages of Multi Modal Transport System
The responsibility of delivering the freight from origin to destination lies with the operator
Reduce the total transport cost as negotiation done for the whole trip at once
Optimized route utilization
Improve the transit time
User has the opportunity to focus on core business as the risk of delivering passes to the operator
Multi Modal Transport Document
Same as issuing a BL in ocean transportation and airway BL in air transportation, operator issues a multi modal transport document to its user upon handing over the cargo. Same as in BL the multi modal transport document can issue either negotiable or non- negotiable format.
The document contain the details and the nature of goods, quantity, volume, quality, DG/Non-DG status, consignor/consignee details, as well the delivery place.
Examples for Multi Modal Transport System
Multi Modal Vs Inter Modal Transport
Since you have abetter understanding on the multi modal transport system we will have the understanding of inter modal transport system.
Inter modal transport is the total opposite of multi modal transport system. So, the cargo will not deliver to the destination using one transport document. User has the ability to decide which modes to use and up to which distances. For example, user can decide whether the cargo deliver to the sea port using a truck or not. Then contact a trucking company to carry out the job, if the next distance deliver via ocean transport contact a shipping line/forwarder to negotiate rate and handle goods. So the shipping line issues a BL for the port of origin to port of destination which they are responsible for and trucking company will provides a separate transport document for the distance they have agreed. So there will be more than one transport document involves when deliver cargo from the plant to final customer.
Safe transport modal selection!
The Article 1 of United Nations Convention on International Multi modal Transport of Goods, (Geneva, 24 May 1980) states International multi modal transport as “The carriage of goods by at least two different modes of transport on the basis of a multi modal transport contract from a place in one country at which the goods are taken in charge by the multi modal transport operator to a place designated for delivery situated in a different country. The operations of pick-up and delivery of goods carried out in the performance of a uni modal transport contract, as defined in such contract, shall not be considered as international multi modal transport”.
The multi modal transport operator is responsible to arrange the carriage and there is no necessity for one firm to own means of transport in every transport mode. Yet they will coordinate and arrange the freight until reach the destination.
For the safety of transparency of the operators role, United Nations Convention on International Multi modal Transport of Goods, describes the "Multi modal transport operator" as “Any person who on his own behalf or through another person acting on his behalf concludes a multi modal transport contract and who acts as a principal, not as an agent or on behalf of the consignor or of the carriers participating in the multi modal transport operations, and who assumes responsibility for the performance of the contract”.
Using a multi model transport system provides several benefits to the users. Few are as described in below
Advantages of Multi Modal Transport System
The responsibility of delivering the freight from origin to destination lies with the operator
Reduce the total transport cost as negotiation done for the whole trip at once
Optimized route utilization
Improve the transit time
User has the opportunity to focus on core business as the risk of delivering passes to the operator
Multi Modal Transport Document
Same as issuing a BL in ocean transportation and airway BL in air transportation, operator issues a multi modal transport document to its user upon handing over the cargo. Same as in BL the multi modal transport document can issue either negotiable or non- negotiable format.
The document contain the details and the nature of goods, quantity, volume, quality, DG/Non-DG status, consignor/consignee details, as well the delivery place.
Examples for Multi Modal Transport System
- Sea-air transport
- Road-sea transport
- Rail-sea transport
- Rail-sea-air transport
- Rail-air-road transport
- Rail-sea-road-air transport
- Sea-inland water ways transport
Multi Modal Vs Inter Modal Transport
Since you have abetter understanding on the multi modal transport system we will have the understanding of inter modal transport system.
Inter modal transport is the total opposite of multi modal transport system. So, the cargo will not deliver to the destination using one transport document. User has the ability to decide which modes to use and up to which distances. For example, user can decide whether the cargo deliver to the sea port using a truck or not. Then contact a trucking company to carry out the job, if the next distance deliver via ocean transport contact a shipping line/forwarder to negotiate rate and handle goods. So the shipping line issues a BL for the port of origin to port of destination which they are responsible for and trucking company will provides a separate transport document for the distance they have agreed. So there will be more than one transport document involves when deliver cargo from the plant to final customer.
- Multi Modal or Inter modal Transport: Which suit your Business
- The selection of the modal depend on its suitability to your business. Below are some factors to consider before your decision
- The predominance your firm is given on transportation over other business activities
- The cost difference of both modals
- Reliability of the available multi modal operator/operators
- The risk and the difficulties involved in both modals
- Overall comfort to the firm on selection
Safe transport modal selection!