MULTI MODALISM

CHAPTER 11

INTRODUCTION

Multi-modalism / Combined Transport Operation:

Process of operating a door-to-door/ warehouse-to-warehouse service for the shipper, involving 2 or more forms of transport, with the merchandise being conveyed in the same unitized form for the entire transit.

Any mode of transport: road, rail, inland waterway, sea or air – may be involved.

International distribution network is becoming more integrated & MM will play major role.

Traditional seaport to seaport operation is no longer acceptable.

Integrated operation involving carriers, suppliers, consignor and consignee.

INTRODUCTION

INTRODUCTION

Production of product in different location or countries.

Global operation with no time or trade barriers.

MM infrastructure offers low-cost global distribution, fast transit, dedicated services.

MM BENEFIT FOR SHIPPERS

Reliable service, frequent & competitively priced. • Goods arrive within scheduled.

Dedicated & integrated schedules • Benefit companies that has global

network & operate on JIT basis.• Equipped with EDI.

Tailor made service• Tailor made for certain trade/commodities• Use high-tech purpose-built equipment.

Minimum documentation.

Used of through BOL, through rate.

Faster & rapid transit facilitate earlier payments.

Encourages usage of common code, standard, practice on international scale.

Goods arrive in good & better condition.

MM BENEFIT FOR SHIPPERS

FORMS OF MM

Containerization

Method of distributing merchandise in unitized form.

Suitable for transportation by rail, road, air, canal & sea.

Block movement of container, through interconnect land & maritime terminals.

Land Bridge

Overland transport between following and/or preceding sea transport of goods and/or containers.

Could be:LB via trailer/truck – road/sea/road

LB via pallet/IATA container – road/sea/air/road

FORMS OF MM

Piggy Back Operation

Most recent development in MM. Involved usage of road, rail & vehicular ferries.

Road trailers are conveyed by vehicular ferries from one port to another.

Might be loaded to railway wagon for carriage by scheduled train, to certain location.

Then continue journey by road to consignee.

FORMS OF MM

Piggy Back Advantage: Fast transit time through scheduled road,

sea & rail services.

No loading/unloading delay at port.

Cheaper cost.

Less wear & tear on trailer equipment.

FORMS OF MM

Inland Waterways

Sea shipping is integrated with inland waterways (river/canal).

Employ barge carriers for voyages between port & inland waterway connections.

Barge carrying vessel: specialized sea - going ship which can carry barges.

Permits separation of the ship from the barge, which handled the cargo to consignee.

FORMS OF MM

Obstacles to Multi-modalism

1. Conflicts of interest Potential conflicts of interest

between different parties involved in long international supply chains.

Each party anxious to protect their position & market share

Also between government of different country.

2. Lack of money Growth of MM has been slowed by

the widespread shortage of public investment funds.

3. Regulatory impediments Despite widespread deregulation of

transport has taken place over the last few years, there are still many regulatory impediments to MM.

Both within individual countries and at border crossings.

Obstacles to Multi-modalism

4. Security concerns

Still confusion about who is responsible when things go wrong.

Many large MM operators prepared to absorb the risk – take cargo insurance.

However, it is difficult for smaller operators to absorb risk.

Have an important psychological effect on customer attitudes towards MM.

Obstacles to Multi-modalism

5. Insufficient knowledge of user requirements

Because MM services are provided by competing private carriers, there is relatively little discussion or sharing of information about customer needs.

Organizations paid very little attention to customer requirements.

Not fully aware of the types of service for which there is an emerging customer demand

Obstacles to Multi-modalism