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Multimodal freight shipping is the use of multiple modes of transportation by a single trucking company to optimize the movement of goods. This type of shipping offers companies many benefits, including reduced transportation time, lower costs, improved logistics, and stability.
Multimodal shipping involves moving goods using multiple transportation options such as rail, road, sea, and air. This method of shipping is used to reduce the time and cost of transportation.
For example, the combination of sea transportation with road or rail transportation allows efficient transportation of goods from seaports to inland destinations.
Also a feature of multimodal transportation is the use of a single transportation document, meaning that a package of documents for each vehicle is not needed. Also, there is no breaking of cargo or separation of goods during the trip.
How multimodal freight transportation is carried out
The transportation chain is most often divided into three segments:
In most cases, preliminary and final transportation is carried out by road transport, which allows you to deliver a batch of goods, products from the sender’s warehouse to the front door of the recipient. And at the stage of long-distance transportation less expensive rail or water transport is used.
Multimodal transportation of goods is provided by different mechanisms and tools. For example, warehouse multimodal terminals serve as centers where cargo/parcels are seamlessly transloaded from one transport to another. Such warehouses minimize delays and increase the overall speed of transportation. And containerization involves packing goods in standardized containers that can be easily and quickly reloaded from one vehicle to another, eliminating the need for manual handling and reducing the possibility of damage or loss of goods.
Multimodal international freight transportation helps reduce congestion at certain stages of transportation. By redirecting some traffic from heavily congested highways to rail or sea routes, combined transportation reduces the strain on infrastructure and reduces overall traffic flow. This results in shorter travel times, lower fuel costs and a better environment.
Each mode of transportation has its own strengths and limitations. For example:
By integrating multiple modes of transportation, such as rail, truck, sea and air, companies can leverage the strengths of each to optimize the movement of goods. When a trucking company strategically combines these modes of transportation, multimodal freight transportation becomes a profitable and sometimes the only solution in some cases:
For example, a large cargo ship cannot call at small ports to load goods. Therefore, goods are transported from inland areas using rail or road to ports that have their own rail terminals. A combination of road and air transport works in a similar way, which is ideal for express transportation of urgent shipments.
Another one of the advantages of multimodal transportation for companies is having a single trucking company for the entire process. One company – one trucking contract. There is no need to contract with different logistics operators. Administrative costs are reduced, and the risks of problems at each stage of delivery are lowered. Due to the fact that the goods are controlled by one operator, the logistics of multimodal transportation is improved:
In terms of economic efficiency, international multimodal freight transportation offers significant advantages. By using the most appropriate mode of transport for each stage, companies can optimize their transportation costs. For example, using rail or sea transport for long-haul segments is more cost-effective than transportation by truck. And if a trucking route encounters unexpected delays or track closures, rail or water transportation can be involved. Reducing dependence on a single mode of transportation ensures a continuous flow of traffic and minimizes downtime. Consolidation of cargo at intermodal terminals and the use of standardized containers, in turn, help reduce the costs of transloading, packing, and handling.
A Ukrainian company sends cargo to Greece. The cargo is packed into containers at the company’s warehouses in Ukraine. Neolit Logistics specialists pick up the containers and deliver them to the port of Odessa. By sea the cargo is delivered to one of the ports of Greece, where it is unloaded onto trucks. By trucks the shipment is delivered to the warehouse of the recipient. During the whole process we take full responsibility for the cargo. The shipment is handled by one contract.
Neolite Logistics specializes in providing the best multimodal solutions. We offer transportation services that aim to reduce customer costs, increase delivery speed and maximize cargo security. Using the advantages of each mode of transportation, we develop solutions and routes that are optimal in terms of time and cost for each shipment. We will deliver your cargo anywhere in the world and guarantee:
You can find out more about what multimodal transportation is and get competent advice by phone or in the office of Neolit Logistics. The manager will tell you in detail about transportation options and calculate the cost of delivery of a batch of goods using multimodal transportation.
