Intermodal and Multimodal Transport of Goods: From Ocean to Inland
Shipping goods in containers doesn’t mean that the journey only covers shipping it in literal ships on the ocean. Most of the time, containers will also travel by truck, rail, barge or a mix of modes before reaching its final destination. Mixing modes of transport (MoT) can be referred to as either Intermodal Transport or Multimodal Transport. While both involve different MoTs, there are some differences. Let’s explore both concepts and see how they work together to keep trade flowing smoothly.
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Intermodal Transport: Interconnected Transportation
As already mentioned, intermodal transport involves more than one mode of transport to get the container from A to B. For example, moving the container from the factory to its Port of Loading (PoL) via truck, then transferring it onto the vessel. After reaching the Port of Destination (PoD), the container is then transported to a different terminal via rail.
The catch? With intermodal transport, there are multiple contracts. Each leg of the journey is handled by a different stakeholder. So, there will be a contract between the shipper with the trucking company, one with the carrier and one with the rail handling company.
Multimodal Transport: Multiple Vehicles, One Operator
On the other hand, multimodal transport involves multiple modes of transport but all of them are handled by the same company, mostly the respective carrier. Hence, there’s only one contract between shipper and carrier that covers the entire transport journey.
MTO stands for Multimodal Transport Operator and refers to the party that handles all the different transport legs under one single contract. In most cases this is the carrier. The MTO takes care of the documentation, liability and coordination across the modes.
Now that you know the difference between intermodal and multimodal transportation you might be wondering, when to use what and if it really matters. Well, admittedly, the lines between both models start to blur – not at least because of developments like IoT devices and an increase in smart visibility offerings such as our very own Live Position.
With tools like these, end-to-end visibility becomes more accessible and is less dependent on the chosen Transport model. Nonetheless, there are some key benefits for each.
What are the Characteristics of Intermodal and Multimodal Transportation?
While there certainly are some advantages and disadvantages to each of the both modes, it cannot be generalizsed with a one-size-fits-all approach to choose between the two of them. Instead, it depends on the individual use case. Anyhow, let’s take a look at the differences at one glance and then some recommendations to make the choice a bit easier.
| Intermodal | Multimodal | |
|---|---|---|
| Number of contracts | Multiple | One |
| Responsibility | Split among carriers | One operator is fully responsible |
| Flexibility | High – choose specific partners or routes | Lower – you go with the operator’s plan |
| Liability | Divided by leg and carrier | Centralized under the multimodal operator |
| Documentation | Multiple transport documents | One combined transport document |
| Best For | Cost control, route customization | Simplicity, one-stop logistics solutions |
As you can see, there’s quite a few things to be kept in mind.
Intermodal Transport might be more challenging when it comes to planning and handling the entire process because of the increased coordination. You should be ready to:
- Coordinate: Either you, your consignee or freight forwarder will need to manage and coordinate multiple providers, schedules and documentstns to get and keep your cargo moving.
- Track all the different legs: With different handlers per leg there might be different tracking systems and data involved.
- Network: When organising intermodal transport, you should have a network on hand to rely on for each of the steps.
While you do not need to take care of these things when opting for the multimodal transport model, you should nevertheless be aware that you are not quite as flexible as when choosing intermodal transport. Nonetheless, you will be able to get a full-service multimodal package and can lean back, while we take care of your cargo.
The Advantages of the Hapag-Lloyd Multimodal Service Packages
- Simplified logistics: With a single contract and a single carrier, you have one point of contact for the entire journey, making it easier to manage your shipments.
- Increased efficiency: Hapag-Lloyd's multimodal services streamline your supply chain by providing a seamless transition between different modes of transport, reducing transit times, and improving overall efficiency.
- Reduced costs: By using a single carrier for multiple modes of transport, you can benefit from economies of scale and reduced costs, as you don't need to negotiate separate contracts with multiple carriers.
- Improved reliability: Hapag-Lloyd's multimodal services provide a high level of reliability, as they have control over the entire transport chain, enabling them to better manage risks and minimize disruptions.
- Enhanced visibility: With a single carrier, you have greater visibility into your shipment's status, as Hapag-Lloyd provides tracking and monitoring across all modes of transport. You can access our tracking tools 24/7 via our Online Business Suite.
- Customized solutions: We offer tailored multimodal solutions to meet your specific needs, taking into account the type of cargo, route, and other factors.
- Risk management: By having a single carrier responsible for the entire journey, you can better manage risks, such as damage, loss, or delays, as Hapag-Lloyd assumes liability for the entire transport chain.
- Compliance and regulatory expertise: We at Hapag-Lloyd have extensive knowledge of international regulations and compliance requirements, ensuring that your shipments comply with relevant laws and regulations.
Conclusion
Whether you choose intermodal or multimodal transport depends on your goals:
- If you want more control and flexibility, intermodal might be the way to go.
- If you value simplicity, single-point accountability, and ease of management, multimodal is likely a better fit.
Either way, both options are essential tools in today’s global supply chain, especially for containerized cargo. The good news? With the right setup, your cargo can travel thousands of miles, across borders and oceans, all without ever leaving its container.
Check our Inland options for tailored transport for your cargo.