DIFFERENCE BETWEEN MULTIMODAL AND INTERMODAL SHIPPING

  As transportation revolutionizes, newer, more complex inventory movement processes are entering the industry. In shipping, most goods travel thousands of kilometers overseas to reach their destination. Therefore, in today’s world, transportation plays a vital role in the movement of people and goods from one place to another. Multimodal and intermodal transportation are two terms that are often used interchangeably, but they are different. Shipping freight forwarding companies like AFM Logistics define the two terms and explain the differences between them, highlighting the advantages and disadvantages of each type of transportation. By the end of this blog, you will have a clear understanding of the differences between multimodal and intermodal transportation and how to choose the most efficient and cost-effective mode of transportation for their needs.




INTERMODAL SHIPPING

Intermodal shipping refers to when the shipment is handled by several shipping companies. The movement of cargo by several modes of transport and each of these modes have a different transport carrier. From origin to destination, the shipment is handled by multiple carriers during one journey. Using different shipping carriers will help you find the best routing and reduce the shipping time.

If you use this kind of shopping, you should have contacts of each carrier to handle the specific leg of the shipment. There are several Perks of using Intermodal shipping. Check out the advantages of using this kind of shipping below:

  • You can take advantage of choosing carriers of lower rates for each transport leg.
  • You can choose the carrier for each transport leg based on budget and services.
  • You can track the shipment and can stop it at any time for any reason.
  • If you face issues related to equipment and space, you can flexibly select the carrier.

 

Intermodal shipping has several advantages and disadvantages:

·        Advantages of intermodal shipping

Cost efficiency;

Flexibility and scalability;

Reduced transit times;

Reduced transit times;

Improved reliability;

Environmental sustainability.

 

● Disadvantages of intermodal shipping

Infrastructure limitations;

Transloading challenges;

Limited accessibility;

Coordination and communication;

Increased complexity.

 

Advantages of multimodal transportation

Efficiency and speed;

Flexibility and adaptability;

Cost optimization;

Security and risk reduction;

Access to global markets;

Disadvantages of multimodal transportation

Administrative complexity;

Additional costs;

Dependence on third parties;

Longer transit time in some cases;




 

MULTIMODAL SHIPPING

Multimodal shipping is the combined shipment by using a different type of transport that includes trains, trucks, airplanes, and ships. The shipment falls under a single contractor but broken up into different modes of transport. In the context of multimodal shipping, only one provider will be responsible for handling shipping delays and interaction. If you use multimodal shipping, you have to contact one carrier that covers the entire shipping. This might mean that multimodal shipping reduces hassle and eases the stress of communicating.

  • One carrier is liable for the shipping of freight.
  • You can track the shipment through one contact.
  • One entity is responsible for meeting shipment and delivery requirements.
  • No hassles at all and easy communication.

Fortunately, you have choices available to pick the right kind of shipping for your business. This is a great opportunity to drive your business and shipping needs according to what you want. But, be sure to find the right freight forwarding company that serves peace of mind and meet all your requirements.

 

 

The main difference between multimodal and intermodal transport is: 1) how the product is transferred between transportation modes, and 2) how the contracts are made with each carrier.

 

Product Transfer

With multimodal transport, the products or commodities are loaded and unloaded into transportation-specific containers when transferring, say, between sea and rail, rail and ground, etc. Excessive product transfer may result in product damage or loss; you may have heard the phrase “fallen out of a truck” when asking your relative about an expensive purse they clearly can’t afford. In fact, product damage during transportation costs up to $0.48 per pallet annually, which certainly adds up over time with larger supply chains.

This is the benefit of intermodal transport, because the products are loaded into a single intermodal container to be used for several modes of transportation. The products themselves will remain secure as the container itself is loaded and offloaded from a truck, train, ship or air freight. 

Using one intermodal container allows for safer packing of products, which results in less damage and loss, as well as quicker and more efficient movement between freight methods. For this reason, intermodal transport tends to be less costly than multimodal transport.

Contracting Carriers

During a multimodal transport, the shipper creates a single contract with the Multimodal Transport Operator (MTO), which is wholly responsible for the cargo from the origin to the end destination. This allows the shipper to simplify the communication process by just working with a sole transport provider or agent. Also, the simplified communication allows for more accurate shipping updates, tracking notifications, and opportunities for optimization. On the other hand, the shipper must rely on the MTO to select the best/cheapest routes for their cargo, and flexibility is limited.

Conversely, during an intermodal transport, the shipper must create multiple contracts with individual carriers. While there is only one intermodal container, it will be passed between many liable parties, increasing the complexity for the shipper in terms of communication and optimization across carriers; however, the shipper has more flexibility to independently choose each leg of the fulfillment journey. 

 

Conclusion

In conclusion, multimodal and intermodal transportation are two methods that businesses can use to transport goods using multiple modes of transportation. While they share some similarities, they differ in terms of management, coordination, equipment, cost, and flexibility. Understanding the differences between the two is essential to make informed decisions on which method to use, depending on the specific needs of the shipment. Ultimately, businesses must weigh the advantages and disadvantages of each method to choose the one that best fits their needs and budget. In conclusion, shippers must determine if multimodal or intermodal is the right choice given their circumstances, i.e., is your product fragile or at risk of damage/loss, do you have the resources to schedule and manage carrier contracts, etc. Thankfully, smart fulfillment providers and 3PLs like AFM Logistics can help you determine the best way to ship. 

 

 

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