“Intermodal vs. Multimodal
When talking about transportation of goods, two terms are commonly used to describe the method of moving them: Intermodal and Multimodal. At Containerships, we’re experts in multimodal, but we think you should be clear on what that means. So what exactly is the difference?
Multimodal Shipping
Multimodal is defined as the movement of cargo from origin to destination using several modes of transportation. In this instance, however, each mode is operated by a single carrier or multiple carriers, but under a single contract or Bill of Lading. A single carrier for a single journey. The same transport carrier is responsible for moving the shipment across all legs, in all modes.
The difference between multimodal and intermodal lies in the contract / bill of lading and transport carrier responsibility / liability of the movement.
If we look back to our example above, multimodal shipping would be where one company or one contract would handle all legs of the journey. This means that the same company is going to be responsible for moving your shipment in all legs, in all modes.
This can be set up in a couple of ways. You could go with a company that has all of these modes of transport available to them. Another way to set up a single contract for yourself is to use an agent. An agent would do all the negotiation on the back end for you while you only have one contract to keep track of. The agent would also be responsible for coordinating loading, unloading, and delays.
Advantages
This method holds several advantages, the first being less overheads for you. Companies that handle multimodal shipping will be able to handle delays in one leg of the shipment in relation to the other legs without you needing to be involved. This method provides a one stop shop service, so every single aspect is handled by one provider, giving you ease and peace of mind.
Advantages of multimodal transportation are:
a) Shipment tracking efficiency: Being able to monitor with one transport carrier from door-to-door;
b) Access to remote parts of the world with responsibility and liability of the movement with one transport carrier;
c) Efficiency in delivery time; and
d) Minimization of logistics coordination expenses of a shipper
Intermodal Shipping
Simply put, intermodal shipping is when your shipments are handled by several different shipping companies.
Intermodal is defined as the movement of cargo from origin to destination by several modes of transport where each of these modes have a different transport carrier responsible, each with its own independent contract. Multiple carriers during a single journey. Each leg of the shipment is be handled by a separate transport carrier. The Shipper will have several contracts, one with each transport carrier to handle their specific leg of the shipment.
To obtain the best routing is not the same as getting the best total shipping cost. Using a combination of different transport carriers is sometimes better to achieve the best total shipping cost for door to door movements. However, it requires more logistics coordination and hands-on involvement. Using a single transport carrier to provide a door to door movement, may achieve the best routing. It requires less logistics coordination and paperwork.
Let us say that you need to move a large amount of cargo to another site. Both of these sites are land locked and on different continents. This could mean in order to move your cargo, you will contact a trucking company to transport your shipment to a rail yard. Once at the rail yard, you will move your cargo to a shipping port. The cargo will be loaded on to a ship and moved overseas to another port- where it will be unloaded and moved to another rail carrier. Finally the shipment will be trucked from the rail yard to your destination location.
When using intermodal shipping, each leg of that shipment will be handled by a separate company. This means that you will have to have several contracts, one with each carrier to handle their specific leg of the shipment.
There are some advantages to doing this. You can negotiate terms separately with each company. This also means more overhead for you, as you will need to keep track of several contracts with different providers. You may also be responsible for handling coordination of delays, as one company will not be aware of the delays that another company might be having.
Advantages
a) Shippers can choose carriers to take advantage of lower rates for each transport leg;
b) gain flexibility and specialized handing of loading and unloading goods at different ports;
c) reduce their carbon footprint by choosing environmentally friendly carriers;
d) increased security of the products being transported; and
e) Shippers have more access to equipment and can better control capacity and selection of transit schedules.”
