UNESCAP Training Module Multimodal Transport Operations Introduction ‘The meet far reaching impact of containesisation on the sole of freight forwardess is their involvement in multimodal transpott, ie. castiage of goods by moss than one mode of transport under a single contract ‘When a freight forvasder acts as a multimodal transport opesstos, he assumes responsiblity for the execution of the multimodal transpost contract, and of the cattiess patticipating in the multimodal transpost opesations, He may enter into separate contracts with individual transpott operators and provides of sesvices, but these subcontsacts ‘would not affect his obligations to the consignor for the performance of the multimodal transpost contsact and his lability to him asising under the contract ‘When a forwarder acts 2: multimodal transpost opesator, it thus involves a major transformation of his sole, The caries for whom he was previously acting as an intermedia become his subcontractos: and he becomes the psincipal. ‘Maltimodal transpottation is not a recent invention since any consignment coming from ovesseas and destined inland wall be travelling on multi modes of tramspost utilizing sea, ral, ait or road ‘What is newris that such a transport can be made without breaking bulk, ie. without taking it out of the containes, vehicle or tuailer in which in was loaded at the place of ongin, and often under the cover of one transport document ‘This is the result of the container “tevclution” which has occusted over the last 20-30 yeass and ‘with the development of Ro-Ro vessel, traless orsea-fersies creating lanctbuidge routes, Heavy loads can also be sent in barges which in tum can be loaded onto vessels in the same mannet as containes, in systems Imoum as “lash” ot “Aseabee”” ‘This chapter will provide you with an undestanding of multimodal transpost opetations and the sole of a multimodal transpost operator (MTO) Chapter objectives On completion of this chapteryou should be able to: Spy + Define the tem “Multimodal transport”, LI = State the advantages of multimodal transport for foruasdess 1" Descsibe the different foums of multimodal transpost operations and operatoss. = State the selationship of a Multimodal Transport Opesstor (MTO) with the intervening patties+ Descsibe the scope of services covered by an MTO. ‘Multimodal transport defined ‘Maltimodal transpost, as undestood by many, refers to a transpost system usually operated by cone catsier with mor than one mode of transport under the control or owmeship of one operator It involves the use of more than one means of transpost such as a combination of touck, railcar, aeroplane or ship in succession to each other eg a container line which opesates both aship anda rail system of double stack trains Advantages of multimodal transport Minimises time loss at trans-shipment points ‘Maltimodal transport, which is planned and coordinated as a single operation, minimises the loss of time and the tisk of loss, pilfecage and damage to caigo at transshipment points. The multimodal transport opesator maintains his oum communication links and coordinates interchange and onward catsiage smoothly at trans-shipment points Provides faster transit of goods “The faster transit of goocs made possible under multimodal transpost reduces the disadvantages cof distance from markets and the tying-up of capital. In an ex of Globalization the dstance between ongin or sousce mateials and consumer is increasing thanks to the development of multimodal transpost Reduces burden of documentation and formalities ‘The busden of issuing multiple documentation and other formalities connected with each segmented of the transpost chain is reduced to a minimum, Saves cost ‘The savings in costs resulting from these advantages ate usually reflected in the through freight sates charged by the multimodal transpost operator and also in the cost of cargo insurance. As savings are passed onto the consumer demand increases. Establishes only one agency to deal with ‘The consignor has to deal with only the multimodal transpost operator in all matters lating to the transpottation ofhis goock, including the settlement of claims forloss of goods, or damage to them, or delay in delivery at destination, Reduces cost of exports ‘The inherent advantages of multimodal transpost system wall help to reduce the cost of exposts and improve their competitive position in the intemational masket.Forms of multimodal transport operations CCusrently, different types of multimodal transpost opetations involving different combinations axe taking place, such as Land-Sea-Land ‘An example of this foam of the transport is as follows An empty container is picked up from the line’s container yard in Singapore and tmicked to shippeds factory in Johoxe (Malaysia) for stuffing, thereafter the FCL is trucked to Singapore and transposted by ocean vessel to New York. ‘Truck from vessel to sai-head New York Ral from New York to sail-head Chicago ‘Tuck from Chicago sal-head to consignee’s warehouse Preeinens ‘There can be several additional links, for instance, if the container was catsied by sail from, say, Kuala Lumpurto Singapore ‘Where LCL cargo is concemed, the individual shipments would be delivered to the freight forurarde’s CFS or the shipping line’s CFS and consolidated into a FCL which, in Chicago, is tucked to the CFS, where from itis pickechup by the consignee’s touck. Road/Air/Road A combination of ais catsiage with tmick teanspott is a frequent method of multimodal service. Undoubtedly, pick up and delivesy sesvices by road transpott are usually incidental to air transpoxt. Butapait from this, road transport is now being incseasingly used, pasticulady in Europe and USA, fortmcking air freight over long distances, sometimes actcss national boundaties, to connect wath the main bases of aidines operating long haul services such as trans-Pacific, trans-Atlantic and intercontinental. Several aidines are building up a number of tnicking hubs in Eusope to act as focal points for road-based feeder operations ‘Many aidines provide road service to cities which they either find uneconomical to service by ais, orto which they do not enjoy landing sights. This road transpostation is offen effected with their ‘own vehicles, and to and from their oum facilities, but on occasion they do also use highway Sea/Air/Sea ‘This combines the economy of sea transpost and the speed of air transpost and is becoming increasingly popular in several intemational trade routes like the Far East Eusope route. ‘The economics of this combination mode frvour high value items Uke electronics, electrical goock, computes and photographic equipment as well 2s goocs with high seasonal demand such as, fashion wear and toys ‘This multimodal operation is pasticulady applicable where the route to be covered combines large stances via land and ates, and where transit time is impostant Frequent sea/air services routes are: ORIGIN | MODE via MODE | DESTINATION | OPERATION Asia | Ocean | Dubai Air Europe SealAir Asia | Ocean | Seattle Air Europe SealAir Europe | Ocean | Canada | Air W. Canada SealAir Nepal | Air | Singapore | Sea Europe Air/Sea Rail/road /inland waterways /sea ‘This combination mode is in common use when goods have to be moved by sea from one country to another and one or ‘more inland modes of transpost such as sail, road or inland ‘waterunys, have to be used for moving the goods fiom an inland centre to the seapott in the country of ongin or from the seaport to an inland centre in the countsy of destination, Mini-bridge ‘This involves the movement of containes, under a through bill of lading issued by an ocean catties, by a vessel from a pott in one country to a post in ancther countyy and then by sail to a second port city in the second countiy, terminating at the sai carsier’s texminal in the second pott city. The mini-buidge offess the consignor a through container sate inclusive of sail fright up tothe inal post city in the country of destination. ‘The sailways ate paid a fat rate per container by the ocean cassis for the sal transit. This system is in operation on cestain routes covering the trade between the United States and the Far East, United States / Eusope, United States / Austualla ete Land bridge ‘This system concems itself with shipment of containers overland as a patt of asexland or ase: Iand-sea route. In this case also, the taitways ate paid a flat ente by the ocean cassier who issues the through bill of lading This system is in operation for the movement of containers on cestain impostant intemational routes such as: = between Eucope or the Middle Hast and the Far East via the Trans-Siberian land buidge; and + between Europe and the Far East via the Atlantic and Pacific coasts of the USA, continental U.S.A. being used as aland bridge Ro-Ro (Roll-on/Roll-off) ‘This mode combines different means of transpottation Gea and road), and is used most often with new automobiles, ‘which ase shipped by sea and them simply diiven off the vessel to the imposters warehouse Heavy and over ckmensional cargo is also suitable for Ro-Ro transport L.AS.H. (Lighter Abroad Ship) LASH transpottis the combination of deep sea and inland waterway transpostation. An example is the soute from Germany to the Mississippi Posts where the barges sail doum the Rhine, Elbe or Weser in Gesmany, ase loaded onto LASH container vessels in Rotterdam, Hamburg or Bremen, ace then cattied actos the Atlantic, only to be unloaded at a ‘Mississippi delta post to sail upstream in the U.S Tt must be noted that LASH vessels are expensive, and fasthesmore it is necessasy to check on the availability of the special handling facilites necessary in the potts of destination.Piggyback ‘This is a system of unitised multimodal land transpottation, a combination of transpost by road and sail. It has become popular in Latin Amesican and European counties because it combines the speed and reliability of rail on long hauls with the doorto-door flexbility of soad transport for collection and delivery. The goods ate packed in tales and hauled by tractors to the sailuay station. At the station, the trades: ase moved onto sailuny flat cass and the transpott tractos, which stay behind are then disconnected At destination, tractoss again haul the tuailes to the warehouses ofthe consignee ‘The system has undergone sefinements and sophistication by the introduction of the so-called "trailer train" which uses the same trailer as a vehicle on the road and a sail vehicle on the sail In other worck, the trailer moves on its wheels as a tmck on the soad but the wheels can be retracted by an air suspension system and connected to a sail bogie for movement by ral. At the end cof the sail joumey, the conversion back to being toad vehicle is «effected for delivery of the goods to the customers, Sea train ‘This is another innovation in the smultimodal transport system involving the use of sal and ocean tunsport. It was onginally adopted in the USA It is similar to the tolton, soll-off (Ro-Ro) system except that in the place of the Ro-Ro vehicle a sail car is used so that geoguaphically separated sail systems can be connected by the use of an ocean catsiex Typically these vessels are long and. thin and consist of one main deck mnning the length of the ship. They ate quicker at loading trains than general cargo vessels since the teain’s carsiages do not need to be detached fom one another Conclusion ‘These examples ase only illustrative, not exhaustive, In actual practice, several other combination smodks may be used depending upon the trade routes, trans-shipment points and the availability, of different modes of transport. Newrinfiastmctusal developments are being proposed the would over to create a seamless flow of traffic eg the channel tunnel linking England and France, the (Oresund bridge linking Sweden and Denmad. As these projects have become reality so the fowr of traffic changes. Other changes such as global watming pose the potential for new routes to ‘open up via the nosthem sea between Russia's nosthem border and the nosth pole.An MTO should have the Imoudedge and skill to organise the transpottation of goocs through Afferent modes of transport He should be aware of what is happening in the areas of technological development, political stability of countsies, congestion of routes or merges of operators. The MTO needs this information because he atranges vith the tmcking company, always, shipping lines and other transport operatoss to transpott the goods from one place to another vithm the shostest time which may not necessary be the most dliect. Since the finction of the MTO auises out ofthe needs of the shipper, he must be able to offer a service which coves: a-wide geographical asea, either through an in-house branch netwodk or by means of reputable agency axsangements. ‘The value added in teums of the services provided by a MTO is significantly greater than that provided by the conventional cattier ‘The role of the MTO in the transpostation of goods door to-door will continue to inctease because of the single cassis lisbility they undestake and the Alexbility with which they fonction. They can, for example, vary the all-in firight sates according tothe complexity ofthe service provided, taking into account the volume of business provided by their customess