Multimodal Transport: What Is It And What Are The Benefits?

If you're looking for an efficient way to transport goods, you've probably heard of multimodal transport. But what does it mean

Kenny Lipman
April 26, 2023

If you're looking for an efficient way to transport goods, you've probably heard of multimodal transport. But what does this actually mean and what are the advantages compared to intermodal transport? In this blog post, we'll explain it and give you valuable information about multimodal transport.

What is multimodal transport?

The meaning of multimodal transport is to transport goods via multiple modes of transport, such as trucks, ships, trains and planes. Here, the various means of transport are used in a coordinated way, so that the goods are transported from point A to point B as efficiently as possible and the transport is as smooth as possible. If you want to transport a shipment from China to the Netherlands, you simply cannot use a ship or plane alone. You therefore need road and/or train transport. The great advantage of multimodal transport is that it is possible to combine the strengths of different modes of transport. For example, the fastest mode of transport can be used for the first part of the journey, while the cheapest mode of transport can be used for the last part of the journey. In addition, you use the most common routes, making transport as cheap as possible. A flight from Shenzhen to Amsterdam, for example, is a common route. A flight from Shenzhen to Groningen, or Rotterdam, is much less common and therefore less efficient transport route.

Difference between multimodal and intermodal transport

In intermodal transport, the goods remain in one loading unit, such as a container, throughout the transport. This allows the loading unit to be transferred from one means of transport to another without the goods being transhipped in the meantime. This results in fewer actions, fewer errors and faster transaction.In multimodal transport, the goods can be transferred from one mode of transport to another in the meantime. This provides more flexibility, because the strengths of various modes of transport can be used. This allows transport to be carried out more efficiently and costs can be saved.Benefits of multimodal transportNow that we know what multimodal transport is, we can look at the advantages compared to intermodal transport.

1. Efficiency

Multimodal transport makes use of the strengths of various modes of transport. As a result, transport can be carried out more efficiently than, for example, road transport alone or rail transport alone. This results in lower costs and shorter lead times. One example that shows that multimodal transport is more efficient than intermodal transport is transporting goods from Asia to Europe. Intermodal transport, for example, uses sea containers that are transported from the port to an intermodal platform, where they are then transferred to trains that travel inland and are transported from there by trucks.In multimodal transport, on the other hand, different modes of transport can be combined to make the process even more efficient. For example, sea freight, combined with air freight or inland navigation, can be used to transport goods faster and cheaper. In this way, transport time can be reduced and costs reduced, which is a clear advantage over intermodal transport.At Boloo Forwarding, for example, we make frequent use of the method of sending consolidation containers. This method means that we consolidate different goods from companies and put them in the same container. As a result, processes in the ports are faster, because all goods booked in a container by Boloo Forwarding belong to a company that is a customer of Boloo Forwarding. As a result, the container does not have to be split in the port, but the entire container can go directly to our department store in the Netherlands, which saves an enormous amount of administrative hassle and time. In the department store in the Netherlands, we split the container, put the goods on pallets and ship them to our customers. This allows every Boloo Forwarding customer to make optimal use of this efficient method of multimodal transport.

2. Flexibility

In multimodal transport, there is more flexibility in the choice of means of transport. As a result, for example, a faster mode of transport can be chosen if delivery needs to take place in the short term. So an advantage is that it can help increase the flexibility of the transport process. By combining different modes of transport, companies can create a more flexible transport route and better respond to changes in market supply and demand. For example, if a company needs to transport goods to a remote location, it can use a combination of air transport and road transport. This can help increase flexibility because air transport is fast, while road transport offers more flexibility to deliver goods to specific locations.

3. Cost savings

Multimodal transport can lead to cost savings. By using different modes of transport, goods can be transported faster and cheaper. This can lead to lower transport costs and lower logistical costs. One example of the advantage of multimodal transport is that it can help reduce transport costs. By combining different modes of transport, companies can find more efficient transport routes and thus save costs. For example, if a company needs to transport goods from the Netherlands to Spain, it can use a combination of road transport and sea transport. This can help lower costs because road transport is relatively expensive, while sea transport is less fast but less expensive.

4. Less dependence on one mode of transport

By using multiple modes of transport, there is less dependence on one mode of transport. As a result, there is less chance of delays or failure of transport, which increases the reliability of the transport.

5. Environmentally friendly

Multimodal transport can contribute to reducing CO2 emissions and improving air quality. By combining trucks and ships, for example, more efficient loading can take place and fewer transport movements may be required. As a result, less fuel is consumed and fewer harmful substances are emitted. An example of the advantage of multimodal transport is that it can help reduce the impact on the environment. By combining different modes of transport, the transport process can be made more sustainable. For example, if a company needs to transport goods from the port in the Netherlands to a distribution center in Zwolle, it can use a combination of inland navigation and road transport. This can help reduce greenhouse gas emissions, because inland navigation is less polluting than road transport.

Disadvantages of multimodal transport

Now that we know the advantages of multimodal transport, we can look at the disadvantages compared to intermodal transport.

1. Complexity

Multimodal transport can be complex and requires good coordination between different modes of transport. In addition, the transport process may be affected by weather conditions and other factors that are beyond the company's control.

2. Higher transport costs

Another disadvantage is that multimodal transport sometimes involves higher costs than, for example, direct shipping via one transport mode. In multimodal transport, different parties must work together and sometimes additional actions must be carried out, so that the total transport costs can be higher.

3. Dangerous substances

One example that shows that multimodal transport can have disadvantages is the transport of dangerous goods. When transporting dangerous goods, strict safety regulations must be followed, and sometimes extra measures must be taken to ensure safety. In multimodal transport, these safety regulations and additional measures must be followed for each mode of transport, which can lead to additional costs and challenges

4. Perishable goods

Another example is transporting perishable goods, such as food. In multimodal transport, additional measures often have to be taken to control the temperature and to ensure that the goods remain in good condition during transport. As a result, the total transport costs can also be higher than, for example, direct shipping via one transport mode.

Conclusion

After weighing the pros and cons of multimodal and intermodal transport, multimodal transport seems to be the best choice for companies that want to combine efficiency and flexibility. While intermodal transport can be a good option for transporting large quantities of goods over long distances, multimodal transport offers more advantages in terms of speed, reliability and sustainability.Multimodal transport uses different modes of transport, allowing companies to benefit from the specific advantages of each mode of transport. In addition, multimodal transport provides more flexibility and can help reduce the risks of delays and operational challenges. In addition, multimodal transport can contribute to reducing CO2 emissions and improving air quality. Because of these advantages, multimodal transport is an attractive option for companies looking for an efficient and sustainable way to transport goods. Of course, there are also some disadvantages to multimodal transport, such as higher costs and safety challenges when transporting dangerous goods. However, companies must weigh these disadvantages against the advantages and determine what best suits their specific needs. All in all, multimodal transport seems to be a good choice for companies looking for an efficient and sustainable solution for their logistical needs. By combining different modes of transport, companies can take advantage of the benefits of each of them and thus optimize their logistics processes.

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