In: Accounting
1.the international mode of transportation can be used delivery of a shipment containing 1,000 women’s yoga pants to lululemon athletica’s distribution center in Toronto.may be it can be flight or shipment
2.
Intermodal transportation is the use of two or more modes, or carriers, to transport goods (freight) from shipper to consignee. Special standardized containers are used for intermodal transport of cargo on trucks, freight trains, and ships. These containers are large rectangular boxes, capable of being secured to special trailers. These durable, steel containers are built so they can be transferred between different modes of transportation easily. This eliminates the risks of directly handling shipments.
Intermodal transportation isn’t new. The practice was first used in 18th century England. In the 1950s the steel intermodal container became the standard. It was based on design specifications developed for the US DoD.
A typical example of intermodal freight transportation is rail, truck, ship, and then truck. The truck transport used between the rail terminals and the ocean ports, is a specialized form of trucking often called drayage. This is usually provided by dedicated companies who provide only this type of service.
An example of how this type of transportation scenario would progress, would be with a truck bringing an empty container to a shipper to pick up a load. The container would be loaded with freight by the shipper and then taken by the truck to a railroad yard. It is then put on a train and moved to its destination. At the destination city it is removed from the train and delivered by truck to the consignee, where the contents of the containers are unloaded. The container is then empty and ready for another load.
What is the Difference Between Intermodal And Multimodal Transportation?
Contract
Intermodal transportation sees each mode of transportation as a different contract. On the other hand, multimodal transportation maintains higher efficiency as the entire process comes under the monitoring radar of one single carrier. Thus, under intermodal, the product or container’s responsibility moves from one hand to other, making it challenging to maintain strict control over quality. On the other hand, multimodal has the advantage of keeping the freight under control. Creating a unified ticketing system is more accessible with multimodal transportation. However, the passengers have to take care of individual ticket purchases for each stage of transit.
Flexibility
Intermodal transportation allows the passenger or carrier contractor to choose the best of each mode of transportation. For instance, he can choose the fastest ferry service to save hours in transit and comfortable road transportation over public transportation. In multimodal transportation, the entire process is the choice or model provided to the contractor or passenger based on the service provider’s model.
Delay and Overhead
In terms of overhead and delay, the contractor should keep track of every delay and complications, in each transportation mode. For instance, if an individual is traveling from airport to a remote region, he has to take into account the delay in train arrival, match it up with boarding public road transportation, and so on. One mode of transportation will not have complete information about the complications and delays in another, which leads to incoherence in intermodal transport. However, in terms of multimodal, the entire process is under the control of one service provider, which gives ease to the contractor or service user.
Cost
Intermodal transportation deals with a new contract for every mode of transportation, which increases the overall cost of transportation for the contractor or passengers. In the case of multimodal transportation, the operation cost of setting up such a service is high, but the overall package for the user can be cost-efficient than intermodal. Multimodal transportation gives better routing efficiency than intermodal transportation.
Government Regulation
In case of both the origin and destination located in the same country, there isn’t a considerable difference in regulations of intermodal and multimodal transportation. Let’s say both points (origin and destination) are on different continents, the shipment company has to create a contract that covers the regulations of both the governments.
While dealing with international transportation, the regulations ratified on the process by each country is different. This difference increases the complexity of the contract of multimodal transportation. Some countries do not have the infrastructure to implement multimodal transportation. In such cases, intermodal transportation is the best option.
Reliability / Insurance / Claims
At each node, the carrier provides a contract of lading, which shifts the responsibility of the cargo or transportation to the next service provider, in the case of intermodal transportation. Thus, during cargo claimants, the process can become complicated and tangled into webs of conditions. The claim process can vary based on the type of bill of lading provided by each carrier service provider. Depending upon the contractual conditions and agreements, the claimant’s position will vary. In the case of multimodal transportation, one contract stands valid, and the service provider is claimable in case of any misfortunate events.
Insurance
In the case of multimodal transportation, single umbrella insurance covers every mode of transportation. The intermodal transportation increases the overall cost of operation by requiring different types of insurance for each contract. However, this individual insurance can provide better safety and security of transportation for those transporting fragile or perishable products. The overall insurance concept is quite applicable while choosing multimodal public transportation for an area or city.
Speed vs. Cost
Multimodal transportation and intermodal transportation are both efficient in terms of speed and value when compared to conventional trucking logistics. However, in an in-depth analysis of intermodal vs multimodal concepts, multimodal transportation is the best when commuters put more emphasis on speed than the cost of transportation. This reason is why multimodal transportation is the best replacement for the public transportation system. In terms of intermodal transportation, it is cost-efficient, but the pressure and complexity of intermodal routing and creating a combination of transportation modes fall on the head of the contractor or traveler, which can become a daunting process if used daily.
3.
Multimodal transport (or combined transport) is per definition a combination of at least two or more different modes to move your cargo from a place in one country to another country. The main characteristic of multimodal transport is that even though it includes various modes for transportation, it still falls under one single bill of lading. That means the carrier is fully liable for the entire carriage even though it is performed by different modes of transport such as Air, Rail Road or Sea.
A good example for multimodal transport is Rail-Truck. Carriers like DHL or UPS are offering such a solution for example along China’s Belt-and-Road initiative for goods to move from Asia to Europe. Another example is Sea-Air which is less expensive than air but quicker than shipping only.
When shippers choose multimodal transportation for their cargo, it means that an agent or the carrier is responsible for the entire journey. Having only one contract minimizes coordination and communication expenses for you as a shipper, especially if something goes wrong which leads to high efficiency in delivery time. With Multimodal it is easy for you to track your containers because you only use once tracking interface instead of several ones. Access to remote parts of the world with responsibility and liability of the movement with only one carrier is another reason to choose Multimodal transportation. Multimodal is considered to be a timelier, cost-saving shipping resource.
For instance, take a freight between Hamburg to Shanghai under Multimodal transportation. After the cargo is packed in the containers. the carrier sends their own designated trucking company to pick up the containers in Hamburg and bring it to the Hamburg Port and after it can been brought to Shanghai, it is then brought to its final destination again by a trucking company that works under the carrier. The carrier takes full responsibility from the point of pick-up to the drop-off at the final destination. One contract serves the entire stretch.