Understand the discipline of
Multimodal Transportation
Table of Contents
INTRODUCTION...........................................................................................................................3
Multimodal Transportation..........................................................................................................3
Container transport chain.............................................................................................................6
Performance level of container terminals....................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
INTRODUCTION
Multimodal transportation is very similar to the concept of the combined transport and it means
the goods and products that are shipped by performing various transportation modes such as rail,
road, air, etc. The multimodal transportation is done under a single contract that means
exclusively single bill of lading will be there in the transportation. This report will discuss about
the transportation form which is termed as multimodal along with the various facilities of a
terminal of multimodal transportation (Anwar, 2019). The contract of multimodal transport is to
be done with single operator and covers the full carriage of by the various modes of
transportation. The physical and processes flows within the country in the container transport
chain will also be explained. The container terminals are the facilities through which containers
from cargo are shipped among different vehicles. This report will explain about the container
terminals, its levels of performances and its functions.
Multimodal Transportation
The transportation or shipping which is multimodal refers to the freight and logistics processes
that need the multiple transportation modes. This means if a single shipment is completed while
involving carriers of rail, freight and air cargos as well as carriers of truck means three modes of
transportation are required. Multimodal transportation combines all these three modes to
complete one shipment (Baykasoğlu, 2019). There is a single multimodal transport provider or
operator is in the multimodal transportation. The multimodal transport operator depends on a
smaller contractor’s network to complete the shipment but still it is called a contract of single
operator process for the shipper who is opting for the transportation through multimodal.
The following components are required to approach the multimodal transport system. Demand of
Travel is essential because it approximates the demands of the customers which need multimodal
transportation services. It also evaluates the choices and preferences of the customers and
shippers that are going to use and provide multimodal transportation services (Bouchard, 2013).
Transport Supply involves the accessibility of several modes at different locations such as rural,
urban, international locations and plan exposure of the nodes and map of transport system. To
get the facility which is cost effective, the different modes of transport should be linked. An
operation of traffic is a tool which comprises of the schedules of operation that are controlled for
the priority at intersection point to improvise the regularity and punctuality of the transport. It
puts a control on the various modes of the transportation. Transport Services requires a perfect
time table or a plan of trains, buses and several other transportation modes. This also involves the
network of train movement, services to feeders, minimum and maximum capacities of other
modes, models for prediction of departure, arrival and delays, etc. Guidance and Information
about travel concept is of desegregated information about the traveller of multi modal
transportation and mixed groups of travellers (George, 2013). This tool helps to guide the people
about the multimodal transportation system so that they can change their perceptions about this
transport system. Coordination of inter-organisation such as operators of transportations, their
authorities, the suppliers of information and the owners of the transportation facility all are
termed as a crucial element in the transportation system of multi modal.
Figure 1: Multimodal Transportation System
(Source: Pawan Kumar, 2023)
Facilities of a Multimodal Terminal
Deadlines – Multimodal Transport system minimizes the time of deliver and delivery delays are
also reduced by method of giving single contract to a single contractor. The efficiency in Supply
chain, management of transports as well as customer satisfaction all are based on the deadlines of
shipping (Hummels, 2007). The carrier providers and operators as well as shippers are on the
same mind for the shipments and fulfilment of orders. The risks of delayed delivery are
minimized and the satisfaction of customer needs is maximised in the multimodal transportation
system.
Accessibility – When doing transportation activities with a single mode or by combining various
modes into one brings out various constraints in its way. Multimodal transportation system is
giving facilities to the customer by eliminating the constraints and becoming accessible for them
whenever they want. This system of transport is highly accessible because of the procedure of its
working. Therefore, a customer can easily build trust on the multi modal transportation system.
Accountability – There is only one agent or service provider which is responsible for the motion
of freight. The management of supply chain have some tricky part because it means to track and
hold the shippers and make them answerable to the suppliers about the wasted resources and
delayed services. Multi modal transportation as one supplier which means the coverage of
deliveries will be at the door of customers and the shipment is also safeguarded by the company.
Communication – The most important facility a customer gets in the multi modal transportation
system is of the communication. There is much clarity in the communication in this transport
system. Multi modal transportation system has one service and freight provider. Therefore, from
the view point of customer, talking to a single operator is much easier than communicating with
numerous operators (Kumar, 2019). Likewise, from the point of view of service provider,
communicating with the team of their own people is way easier than to the service providers of
different companies. This brings out the coordination among the customer and operator as well
as the operator and their team.
Despite having various facilities and benefits of the multi modal transportation system, this
system has to face some challenges for the smooth functioning and the solutions that multi modal
carrier providers refers to are paperwork is excessive in multimodal shipping. The bills made for
the different services are also different and at the each transportation halt invoices are made
which is somewhere bothersome for the customers (Ioannou, 2001). The solution to this is the
management system of deliveries should be paperless and also follows the electronic medium.
Disruptions in Supply chain because every shipment provider has to face some challenges as
they are in the industry of logistics. There are various challenges such as concerns of safety for
the shipment as well as the disruptions caused in services and the costs of shipping are inflated.
If the system provider switches to the local suppliers and make changes in their distribution
networks then they may face the challenges. Poor tracking of shipment in multi modal
transportation system because for tracking a shipment combination of resource are needed
whether the transportation is carried in between one shipper or in between one carrier. Therefore,
the requirement of constant updates of the shipment and its tracking is essential. The solution to
this is the automatic notifications of shipment to be generated to the customer as well as the
operator.
Container transport chain
The container transport includes services which are provided door to door surrounding the land
based transporting and ocean going services. Containers move beside the network of shipping
locations and the transport. Physical locations are the places where the containers are stored and
handled. The three most essential components of container transport chain are transport
operators, primary customers and transport facilitators. Sellers and buyers are termed as
primary customer in the chain of container transport (Komashinskiy, 2020). The activities related
to transport as well as import and export is might be handled by the shipment providers, if they
do not want to handle the activities then they can outsource the work to the intermediaries. The
links between the carriers and the shippers are provided by the third party as a transport
facilitator and this third party is termed as an intermediary. Operators of transport include
operators of various modes such as rail, inland, road, ocean etc. The decision on choosing a
mode is very complex because every mode of transport has different characteristics. The factors
in services of a container transport system involve security, capability, inventory, accessibility,
reliability, stock out and transit timing.
Process and physical flows in the container transport chain within the country
Order Placing – The first step of the process in the container transport chain is placing of an
order by a consignee or an importer with a consignor or a manufacturer. An estimate of the total
cost of the products is provided to the consignee along with the preliminary sale bill. After the
approval of the quote, the purchase order is created and this consists of the details of the order
and products’ total cost. Details of address of the destination, dimensions of freight, etc. are also
mentioned in the purchase order.
Shipping terms – The agreement between the supplier and the buyer is regulated by shipping
terms, which apportions risks and costs between the supplier and the consignee. Engagement of
the freight operator for every stage in the shipping process by the supplier or buyer is determined
by the shipping terms.
Freight forwarder – After the generation of purchase order and selection of the shipping terms, a
freight forwarder is required for the organisation of the transport of goods from the place to the
destination place. A company or an individual who makes arrangement of the goods to be
shipped and uses careers which are multiple as well as single across sea, rail, land or air is
termed as freight forwarder (Rodrigue, 2013). The containers that are required for the
transportation of the goods are also arranged by the freight forwarder.
Figure 2: Process of Container Transport
(Source: Hari Menon, 2021)
Shipping documentation – After the placing of an order, a letter of credit is obtained by the
supplier and then an order of confirmation is issued and sent to the importer along with the
commercial bill.
Organisation of the goods – The freight forwarder is responsible for organising the products that
are going to be shipped. This requires the preparation of proper documents. The documents
includes list of packaging, letter of instruction by shipper, origin certificate, declaration letter by
the manufacturer. All this details are required to know about the quality of the products that are
going to be shipped.
Dispatching – The packaging of the products are done into the containers and sent to the
transport in which the goods are to be sent. The products are gone through the proper checking
through instruments. The lading bill is issued before the pickup of the products by the shipper.
Then the containers are put on the instruments that will carry the shipment from the origin to the
location of delivery and are dispatched.
Delivery – After the dispatch of the products, the chosen transportation mode is therefore sent to
the location of the customer. After all the stoppage in the route, the delivery is done to the
customer.
There are various types of containers that are shipped. Flat rack containers which contain the
sides those are foldable. The main mode of transportation of these containers is equipment, cars
and boats. Dry storage containers are those which are typically required in the shipping of
materials which are dry (Kotler, 1999). Open top containers are the containers which have no
upper part or no roof and this type enables the shipping of products which have height.
Machinery is the best example of product in this type of container. Open side containers are
those in which the door of the container remains open fully from the side and allows the loading
of products which are quantifiable and higher in numbers such as vegetables. Containers which
are refrigerated are requires for pharmaceutical products or food products. Tanks are made to
ship the liquids which also include fuels.
The physical flows of the containers transport chain refers to the flow of products, stocks,
materials and other products in the networks of the logistics. The direction of the flow is from the
point of origin to the consumption point. The physical flows of the containers chain also involve
the reverse or backward flows of all the materials. That is why, the systems of logistics and their
entire activities and process is considered by the physical flow (Mongelluzzo, 2006). To
understand the physical flow of container chain transportation, logistics management is needed.
The major types of management in logistics require the management of supply with the proper
planning, procurement and coordination with the materials. Movement of materials and proper
distribution of the products is quite important. The movement is controlled from the products at
the warehouses to the products till the stores. Management of logistics and production is requires
to stage the materials at the correct time and the building of product should also be correct. This
logistic management type is also called as the product management (OECD, 1998). Return of
product and reverse logistics is about the claim of the returned products. The return of the
products which are unwanted and not used by the customer and demand of refund by the
customer is also covered in this type of management.
Performance level of container terminals
A container terminal allows the movement of the containers and transfer of the cargo that are
going to be shipped between the other modes of transport and ships. A checkpoint is refereed as
terminals as here the inspection, loading and unloading of ships takes place. Key Performance
Indicators (KPI) refers to a value that can be measured, that illustrates the effectiveness of a
company in achieving the important objectives of the business (Morrison, 2011). The
measurement of key performance indicators for the container terminals helps to make
improvisations in the operational productivities and efficiencies. The best way to evaluate the
performances of the container terminal is to utilize the criteria of the components that are
Specific, Relevant, Time-bound, Attainable and Measurable.
The key primary indicators that container terminals should track for determination of their
performance level are-
Productivity of the voyage explains about the quick loading and unloading capacity of the
containers at the terminals. The measurement of the productivity of the voyage is important as
companies who ship products need their containers to stay according to the schedule and the
shipping service takers want the unloading and loading of the products very quickly by the
operators at the terminals. Tracking of the productivity of voyage comes under key performance
indicators because it makes the working quickly and every consignor as well as consignee wants
the product functioning in a quick manner (Yu, 2022). This indicator ensures that the loading and
unloading of the container at the terminals takes lesser times and increases the performance of
the container terminal.
Lodge time of the containers describes the staying time of the container at the terminal. The
greater utilization of the potential at the terminal will get achieve if the lodge time of the
container is shorter. The average time measurement of the time of lodging the container is
considered as the way of cost effectiveness to achieve the outputs of the terminals. The
accessibility of the piling area and storing yards are less at the terminals even though the
reductions in lodge time of the containers can enhance the productivity.
Reefer the time of lodge states the time of reefer container stays at the terminal. Reefer is also
known as refrigerated container that should be differently measured because they have products
or cargos that are sensitive to temperature and may need access to power supply from external
sources (World Trade Organisation, 2023). Tracking of reefer lodge time separately is required
to allow the terminal operators to produce important information for the monitor and
optimisation of the logistics of cold items. Reefer temperatures or any abnormal happening as
well as excessive uses of fuel can also get measured.
Container traffic measurement refers to the time taken by container passing through a terminal.
The way of measurement of container traffic is through the number of moves, traffic should be
analysed yearly, monthly, weekly and daily. Container traffic allows the terminals to analyse
their performance of traffic comparison before and today. Due to current traffic, terminals also
get to know about their operations in the current season. Anyone who has interest in the terminal
will always ask about the container traffic. It is really crucial to stay up to date about the
numbers.
Visit time of truck states the time spent by the trucks and the drivers at the terminal when they
came the terminal to load and unload the containers. The bottom line of the truck providing
company gets affected because of the visit time of trucks (Waters, 1996). As truck providing
company is an important player in the chains of supply and are the best customers at the
terminals therefore they want to give the best supply and services as possible. If the visit time of
the trucks at the terminal is reducing then they can make more number of rounds at the terminals
and will be the loyal customers at the terminals. It is useful for the container terminals to cut the
costs for the clients.
Number of movement of gates is the last key performance indicator in the container terminal. The
terminal should closely regulate the number of movement of gates per day. It is useful for
controlling of the overall operations at the terminal along with their real time volumes.
Measurement of the number of gate movements is crucial as it help the terminals to reduce
obstruction and enhance the average movement of gates per week which will increase the overall
productivity of the terminal.
CONCLUSION
This report has discussed about the discipline of the transportation system which is multimodal.
The term multimodal transportation system has been explained along with its various benefits
and a facility to the consumers as well as to the transportation provider is also stated. Multimodal
transport system has various approaches that made this system easily accessible. The container
transport chain refers to the transportation of the containers are done door to door and it have
three crucial components and that are operators, customers and facilitators. These components
make container transport chain as widely utilised chain. The processes as well as the physical
flows of the container transport chain within the country is also been explained in the report. The
container terminals are the ports where transportation of container takes place. This report has
also described the performance levels of container terminals.
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