Post on 03-Apr-2018
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Done By-S.Naresh JainAniq AhmedBalaji.V
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Multimodal transport, as understood bymany, refers to a transport system usuallyoperated by one carrier with more than one
mode of transport under the control orownership of one operator.It involves the use of more than one means of
transport such as a combination of truck, railcar,
aeroplane or ship in succession to each othere.g. a container line which operates both a shipand a rail system of double stack trains.
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More efficient ways of getting goods tomarket.
New ways of doing old business. Container and ICT applications Using a combination of transport modes
more effectively.
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Minimises time loss at trans-shipment point: Multimodal transport operator maintains his own
communication links and coordinates interchangeand onward carriage smoothly at trans-shipmentpoints.
Provides faster transit of goods
The faster transit of goods made possible undermultimodal transport reduces the disadvantagesof distance from markets and the tying-up ofcapital.
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Reduces burden of documentation andformalities
The burden of issuing multiple documentation andother formalities connected with each segmented ofthe transport chain is reduced to a minimum
Saves cost
The savings in costs resulting from these advantagesare usually reflected in the through freight ratescharged by the multimodal transport operator andalso in the cost of cargo insurance.
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Establishes only one agency to deal with The consignor has to deal with only the multimodal
transport operator in all matters relating to the
transportation of his goods, including the settlementof claims for loss of goods, or damage to them, ordelay in delivery at destination.
Reduces cost of exports
The inherent advantages of multimodal transportsystem will help to reduce the cost of exports andimprove their competitive position in theinternational market.
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Land-Sea-Land E.g. An empty container is picked up from the lines container yard
in Singapore and trucked to shippers factory in Johore (Malaysia)
for stuffing, thereafter the FCL is trucked to Singapore. Ocean transportation from Singapore to New York.
Truck from vessel to rail-head New York
Rail from New York to rail-head Chicago
Truck from Chicago rail-head to consignees warehouse.
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There can be several additional links, forinstance, if the container was carried by railfrom, say, Kuala Lumpur to Singapore or, thevessel sailed to USA west coast instead.
Where LCL cargo is concerned, the individualshipments would be delivered to the freight
forwarders CFS or the shipping lines CFS andconsolidated into a FCL which, in Chicago, istrucked to the CFS, where it is picked-up bythe consignees truck.
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A combination of air carriage with trucktransport is a frequent method of multimodalservice. Several airlines are building up a number
of trucking hubs in Europe to act as focal pointsfor road-based feeder operations. Many airlines provide road service to cities which
they either find uneconomical to service by air,or to which they do not enjoy landing rights. Thisroad transportation is often effected with theirown vehicles, and to and from their ownfacilities, but on occasion they do also usehighway common carriers.
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This combines the economy of sea transport and thespeed of air transport and is becoming increasinglypopular in several international trade routes like the
Far East - Europe route. The economics of thiscombination mode favour high value items likeelectronics, electrical goods, computers andphotographic equipment as well as goods with highseasonal demand such as fashion wear and toys.
This multimodal operation is particularly applicablewhere the route to be covered combines largedistances via land and water, and where transit time isimportant.
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This involves the movement of containers, under athrough bill of lading issued by an ocean carrier, by avessel from a port in one country to a port in anothercountry and then by rail to a second port city in the
second country, terminating at the rail carrier'sterminal in the second port city. The mini-bridge offers the consignor a through
container rate inclusive of rail freight up to the finalport city in the country of destination. The railways are
paid a flat rate per container by the ocean carrier forthe rail transit. This system is in operation on certainroutes covering the trade between the United Statesand the Far East, United States / Europe, United States/ Australia, etc
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The goods are packed in trailers and hauled bytractors to the railway station. At the station, thetrailers are moved onto railway flat cars and thetransport tractors, which stay behind, are thendisconnected. At destination, tractors again haul thetrailers to the warehouses of the consignee.
This is a system of unitised multimodal landtransportation, a combination of transport by roadand rail. It has become popular in Latin American andEuropean countries because it combines the speedand reliability of rail on long hauls with the door-to-door flexibility of road transport for collection anddelivery
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Geographically separated rail systems can be
connected by the use of an oceancarrier.Typically these vessels are long andthin and consist of one main deck running thelength of the ship. They are quicker at loadingtrains than general cargo vessels since thetrains carriages do not need to be detachedfrom one another.
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In actual practice, several other combination modesmay be used depending upon the trade routes, trans-shipment points and the availability, of differentmodes of transport.
New infrastructural developments are being proposedthe world over to create a seamless flow of traffic e.g.the channel tunnel linking England and France, theOresund bridge linking Sweden and Denmark. Asthese projects have become reality so the flow oftraffic changes. Other changes such as globalwarming pose the potential for new routes to open upvia the northern sea between Russias northern borderand the north pole.
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An MTO should have the knowledge and skill toorganise the transportation of goods throughdifferent modes of transport. He should be
aware of what is happening in the areas oftechnological development, political stability ofcountries, congestion of routes or mergers ofoperators.
Since the function of the MTO derives from theneeds of the shipper, he must be able to offer aservice which covers a wide geographical area,either through an in-house branch network or bymeans of reputable agency arrangements.