MULTI MODALISM

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MULTI MODALISM

• CHAPTER 11

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INTRODUCTION

• Multi-modalism / Combined Transport Operation
• Process of operating a door-to-door/
  warehouse-to-warehouse service for the shipper,
  involving 2 or more forms of transport, with the
  merchandise being conveyed in the same unitized
  form for the entire transit.

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INTRODUCTION

• Any mode of transport road, rail, inland
  waterway, sea or air may be involved.
• International distribution network is becoming
  more integrated MM will play major role.
• Traditional seaport to seaport operation is no
  longer acceptable.
• Integrated operation involving
  carriers, suppliers, consignor
  and consignee.

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INTRODUCTION

• Production of product in different location or
  countries.
• Global operation with no time or trade barriers.
• MM infrastructure offers low-cost global
  distribution, fast transit, dedicated
  services.

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MM BENEFIT FOR SHIPPERS

• Reliable service, frequent competitively
  priced.
• Goods arrive within scheduled.
• Dedicated integrated schedules
• Benefit companies that has global network
  operate on JIT basis.
• Equipped with EDI.
• Tailor made service
• Tailor made for certain trade/commodities
• Use high-tech purpose-built equipment.

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MM BENEFIT FOR SHIPPERS

• Minimum documentation.
• Used of through BOL, through rate.
• Faster rapid transit facilitate earlier
  payments.
• Encourages usage of common code, standard,
  practice on international scale.
• Goods arrive in good better
  condition.

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FORMS OF MM

• Containerization
• Method of distributing merchandise in unitized
  form.
• Suitable for transportation by rail, road, air,
  canal sea.
• Block movement of container, through interconnect
  land maritime terminals.

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FORMS OF MM

• Land Bridge
• Overland transport between following and/or
  preceding sea transport of goods and/or
  containers.
• Could be
• LB via trailer/truck road/sea/road
• LB via pallet/IATA container road/sea/air/road

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FORMS OF MM

• Piggy Back Operation
• Most recent development in MM. Involved usage of
  road, rail vehicular ferries.
• Road trailers are conveyed by vehicular ferries
  from one port to another.
• Might be loaded to railway wagon for carriage by
  scheduled train, to certain location.
• Then continue journey by road to consignee.

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FORMS OF MM

• Piggy Back Advantage
• Fast transit time through scheduled road, sea
  rail services.
• No loading/unloading delay at port.
• Cheaper cost.
• Less wear tear on trailer
  equipment.

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FORMS OF MM

• Inland Waterways
• Sea shipping is integrated with inland waterways
  (river/canal).
• Employ barge carriers for voyages between port
  inland waterway connections.
• Barge carrying vessel specialized sea - going
  ship which can carry barges.
• Permits separation of the ship from the barge,
  which handled the cargo to consignee.

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Obstacles to Multi-modalism

• Conflicts of interest
• Potential conflicts of interest between different
  parties involved in long international supply
  chains.
• Each party anxious to protect their position
  market share
• Also between government of
  different country.

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Obstacles to Multi-modalism

• 2. Lack of money
• Growth of MM has been slowed by the
  widespread shortage of public investment
  funds.
• 3. Regulatory impediments
• Despite widespread deregulation of transport has
  taken place over the last few years, there are
  still many regulatory impediments to MM.
• Both within individual countries and at border
  crossings.

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Obstacles to Multi-modalism

• 4. Security concerns
• Still confusion about who is
  responsible when things go wrong.
• Many large MM operators prepared to absorb the
  risk take cargo insurance.
• However, it is difficult for smaller operators to
  absorb risk.
• Have an important psychological effect on
  customer attitudes towards MM.

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Obstacles to Multi-modalism

• 5. Insufficient knowledge of user requirements
• Because MM services are provided by competing
  private carriers, there is relatively little
  discussion or sharing of information about
  customer needs.
• Organizations paid very little attention to
  customer requirements.
• Not fully aware of the types of service for which
  there is an emerging customer demand