SCM2 International Transport Management Chapter 7 Multimodal and Internodal Transport ©Global Maritime Learning Solutions Page 1 v 2021 Chapter 7: Multimodel and Intermodal Transportation Objectives • To differentiate between intermodal and multi-modal transportation. • To appreciate the merits of modal transportation. *
SCM2 International Transport Management Chapter 7 Multimodal and Internodal Transport ©Global Maritime Learning Solutions Page 2 v 2021 Table of Contents Objectives..................................................................................................................................1 1. Introduction.......................................................................................................................3 2. Differences Between Intermodal & Multi-modal Transportation.....................................3 3. Purposes of Intermodalism ...............................................................................................8 4. Drivers of Intermodalism...................................................................................................9 5. Intergovernmental Role...................................................................................................11 6. Conclusion .......................................................................................................................11 7. References.......................................................................................................................12
SCM2 International Transport Management Chapter 7 Multimodal and Internodal Transport ©Global Maritime Learning Solutions Page 3 v 2021 1. Introduction Globalisation has caused an expansion in trade demand, and logistic activities have become important issues. The recent competition between the modes has tended to produce a transport system that is segmented and un-integrated. Each mode has sought to exploit its own advantages in terms of cost, service, reliability, and safety. Carriers try to retain business by maximising the line-haul under their control. The various modes that comprise the transportation system connect and intersect in a variety of ways, and both freight and passengers often move from one mode to another. In general, modal transportation may be viewed as the transportation of a person or a load from its origin to its destination by a sequence of at least two transportation modes, the transfer from one mode to the next being performed at a terminal. 2. Differences Between Intermodal & Multi-modal Transportation As compared to unimodal transport, intermodal transportation uses different mode of transport, stated intermodal is the transport of goods using a number or variety of modes, example air, land, sea, and rail. Intermodal transport covers all single-bill shipments using multiple modes whereby an intermodal movement involves the physical infrastructure, goods movement, and transfer, and also having capabilities of information drivers under a single freight bill. With all these, intermodal transport can be described as the set of technologies that facilitates the transfer of loading units from one mode of transport to another. The movement of goods will be in the same loading unit such as containerising the goods without direct handling of the goods themselves when changing modes. It could be argued that one carrier that arranges the entire transportation of goods through different mode of transport from point of origin to final destination, by means of one or more interface and different transport documentation may be issued by the carrier if it is responsible for a portion of the entire transportation. Example will be carrier that arranges the combination of sea and air transport mode, where goods are shipped to Dubai and en route to Europe through air, issues only the sea transport document that he is responsible and next carrier arranges the air transport document that he is responsible for. Hence, in intermodal transportation, each carrier issues their own documents. The definition of multimodal and intermodal are similar in the aspect of various transport modes, as the responsibilities and issuance of transport document. In intermodal, the carrier may be responsible for a portion of transport route, therefore the operator may issue intermodal transport documentation, whereas multimodal transport operator takes charge of the whole transport process and issue a single multimodal transport document. When multimodal transport is connected to worldwide transport of goods, international multimodal transportation is used.
SCM2 International Transport Management Chapter 7 Multimodal and Internodal Transport ©Global Maritime Learning Solutions Page 4 v 2021 United Nations Conference on Trade and Development (UNCTAD) (2011) in 1980 defined international multimodal transport as the carriage of goods by at least two different modes of transport between two different country, which goods are taken charge by the multimodal transport operator with the evidence on transfer of title from seller to buyer on a single carriage document. To further illustrate the differences: Source: (Rodrigue, Comtois, and Slack, 2009). Figure 7-1: Illustrations of Inter-modalism and Multimodalism Figure 7-1 distinguishes between intermodal from multimodal transport. The former involves the use of at least two different modes in a trip from origin to destination under a single transport rate. Inter-modality enhances the economic performance of a transport chain by using the modes in the most productive manner. Thus, the line-haul economies of rail may be exploited for long distances, with efficiencies of trucks providing local pick-up and delivery. Multimodal transport refers to a transport system usually operated by carrier (e.g., a container line which operates both a ship and a rail system of double stack trains) with more than one mode of transport under the control or ownership of one operator. It involves the use of several means of transport; combination of truck, railcar, aeroplane, and ship, in succession to each other. The main key here is that the entire trip is seen as a whole, rather than a series of legs, each marked by individual operation with separate sets of documentation and rates.
SCM2 International Transport Management Chapter 7 Multimodal and Internodal Transport ©Global Maritime Learning Solutions Page 5 v 2021 It is South African practice for the container operator to subcontract the land side movement of cargo to Transnet Freight Rail and thus the container operator accepts liability for the movement of the cargo from origin to the final destination, this movement being carried out under a through bill of lading. While some freight movement may use, and justify the use of, a number of different transport modes, such as road, rail or inland waterways or either short-or-deep-sea shipping, thus making them multimodal operations, in the majority of instances efficient movement are invariably achieved by use of just two modes; most commonly road haulage collection and final delivery journeys combined with a rail-freight truck-haul journey, and it’s known as a combined road-rail operation. Combined transport operations involving either road haulage or rail freight in conjunction with deep-sea container services or with an airfreight operation also feature in intermodal and multimodal scenarios. Figure 7-2: Example of Intermodal Transport Chain Figure 7-2, above an example of intermodal is a common shipping container (20', 40' etc) that is delivered to a shippers’ dock, loaded with freight and sealed, the loaded container is released by the shipper to a transportation company and transported by truck, (rail) truck, to a port where it is loaded on a ship for marine transport, off loaded at the destination port (customs), and moved via truck or rail to the final destination where the container is opened and it is unloaded.
SCM2 International Transport Management Chapter 7 Multimodal and Internodal Transport ©Global Maritime Learning Solutions Page 6 v 2021 Figure 7-3: Example of Multimodal Transport Chain Figure 7-3 is an example of multimodal, the shipper loads pallets of freight; they are released to a shipping company and loaded into a truck. The pallets of freight are delivered to a marine freight dock where it is loaded onto a ship, carried by the ship across the water to the destination port where it is off loaded to a warehouse or truck (customs) and delivered by truck to the receiver. Currently, different types of multimodal transport operations involving different combinations are taking place such as: • Land-Sea-Land, for instance - An empty container is picked up from the line’s container yard in City Deep, Johannesburg and trucked to shipper’s factory in Brits for stuffing, thereafter the FCL is trucked to City Deep, Johannesburg for Railage to Durban CT and transported by ocean vessel to New York, Truck from vessel to railhead New York, Rail from New York to rail-head Chicago, Truck from Chicago railhead to consignee’s warehouse. There can be several additional links, for instance, if the container was carried by rail from, City Deep, Johannesburg to Durban. Where LCL cargo is concerned, the individual shipment would be delivered to the freight forwarders CFS (Container Freight Station known in South Africa as a container depot) or the shipping line’s CFS and consolidated into an FCL which in Chicago, is trucked to the CFS, where from it is picked-up the consignee’s truck. It must be admitted that there is not much true LCL cargo these days as this function has now been taken over by the Groupage Operators. • Road-Air-Road, a combination of air carriage with truck transport is a frequent method of multimodal service. Undoubtedly pickup and delivery services by road transport are usually incidental to air transport. But apart from this, road transport is now being increasingly used, particularly in Europe and USA, for trucking air freight over long distances, sometimes across national boundaries, to connect with the main bases of airlines operating long haul services such as transpacific, trans-Atlantic and inter-continental. Several airlines are building up a number of trucking hubs in Europe to act as focal points for road-based feeder operations.
SCM2 International Transport Management Chapter 7 Multimodal and Internodal Transport ©Global Maritime Learning Solutions Page 7 v 2021 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. For this road transportation on occasion, they do also use highway common carries. • Rail/Road/in/and waterways-sea-rail/road/in/and waterways, this combination mode is in common use when goods have to be moved by sea from one country to another and one more inland modes of transport such as rail, road or inland waterways, have to be used for moving the goods from an inland centre to the seaport in the country of origin or from the seaport to an inland centre in the country of destination. • RO-RO (Roll-on/Roll-off), this mode combines different means of transportation (sea and road), and is used most often with new automobiles, which are shipped by sea and then simply driven off the vessel and to the importer’s warehouse. Heavy and over-dimensional cargo is also suitable for RO-RO transport. The rest of the chapter will focus on intermodalism even though the main difference between it and multimodalism is merely in the processing and handling of documentation. 1. Intermodal Transportation The term “intermodal” is often used synonymously with containerisation (Alt et al. 1996, p.3). However, intermodal transportation is also defined as the exploit of two or more transportation modes to move a container or shipment from origin to destination. It is more useful to define intermodalism as a technical, legal, commercial and management framework for moving goods from door-to door using more than one mode of transport (D’Este 1996, p.5). In general, it can be explained as an exploit of two different transportation modes from one mode of transport to another. For example, a Singapore company that uses the practice of hand-carried computer chips from Singapore plant to Su Zhou plant by taking a taxi to the airport and taking a plane to Su Zhou, from airport transfer to taxi and finally reaching Su Zhou plant. Intermodal transport refers to one carrier moving of goods by several modes of transport i.e., container transport via. This is because of the intermodal logistics platform connect with many transport systems and freight forwarder. In many cases, manufacturers and shippers would look into the intermodal transport for a solution when they face the situation where production was delayed, due to the reason of quality issues, late arrival of raw materials or lack of workforce issues. If the timing is critical to the customer, a quick decision would have to be made by whatever means possible even with the need to pay a high price on the delivery, and the manufactures and shipper were to absorb the additional cost incurred in order to stay in business.
SCM2 International Transport Management Chapter 7 Multimodal and Internodal Transport ©Global Maritime Learning Solutions Page 8 v 2021 The figure below illustrates the possibilities of intermodal transportation for freight or passenger intermodal transportation. Figure 7-4: Types of Intermodalism for Freight Figure 7-5: Types of Intermodalism for Passengers 3. Purposes of Intermodalism Intermodal transportation systems are designed to facilitate cargoes to create a seamless incorporate more than one form of transport into a journey from origin to final destination. Intermodal transportation system provides the foundation to compete in the global economy as it is secure and safe, economically as well as environmentally friendly. As such, the system will continue to grow in essence as every rand spent on transportation systems to be more efficient. The use of heuristic techniques plus combined of information and communication technologies to develop and evaluate the transport system in an intermodal environment.
SCM2 International Transport Management Chapter 7 Multimodal and Internodal Transport ©Global Maritime Learning Solutions Page 9 v 2021 Hence, achieves the effectiveness and sustainability through the process optimisation (Durán et al., 2010). The development of intermodal systems plays a key role in permitting the most appropriate mode of transport to be used for different elements of the transport task, combining the flexibility of road operations with the line-haul efficiency of rail transport – and the ability of sea transport to move large quantities of freight over extended distances (UNESCAP 2005, p.162). The intermodal systems are useful for smooth process flows such as effective loading or unloading and transfer in terminals, as well as reliable performance. Modalism involves the development of an integrated intermodal transport network such as the traffic converges at two transhipment points, rail terminal, where loads are consolidated. This can result in higher load factors or higher transport frequency, especially between terminals. The advantages for modal transportation such as minimises time loss at transhipment points which is planned and coordinated as a single operation, minimises the loss of time and the risk of loss, pilferage and damage to cargo at transhipment points; provides faster transit of goods, reduces burden of documentation and formalities; saving cost resulting from these advantages are usually reflected in the through freight rates charged by the multimodal transport operator and also in the cost of cargo insurance; establishes only one agency to deal with; inherent advantages of multimodal transport system will help to reduce the cost of exports and improve their competitive position in the international market. The information will continue to promote and drive higher expectation of warehouses performance as intermodal process requires real-time information. Information systems are essential for managing the workflow in a warehouse. Therefore, intermodalism will enhance the demand for crafting and execute intermodal technologies and information system. Nevertheless, in order for intermodal transport to success, an efficient interchange of information is required (D’Este, 1996). 4. Drivers of Intermodalism One of the main drivers of intermodal transportation has been containerisation which permits painless handling between modal systems. Containers are designed to move in economically large units with common handling equipment enabling high-speed intermodal transfers between ships, railcars, intermodal chassis which are wheeled frames with container locking devices (trailers) attached to truck tractors for the transport of containers on highway. Besides, Ro-Ro barges are used with a minimum of labour. The container, therefore, serves as the load unit rather merely for the cargo contained. Containers are flexible enough to enable the transport of various types and sizes of goods. It also allows a standardisation of loads. Containers have thus become the most important component for rail and maritime intermodal transportation. An intermodal transportation chain works in such a way when loaded containers leave the shipper’s warehouse by truck to the sea container terminal.
SCM2 International Transport Management Chapter 7 Multimodal and Internodal Transport ©Global Maritime Learning Solutions Page 10 v 2021 Containers are then transported to a seaport on another continent by waterway mode, from there they leave by either trucking or rail or both to their final destinations. Such a transport can be made without breaking bulk. It means without taking it out of the container, vehicle, or trailer in which it was loaded at the place of origin, and often under the cover of one transport document. Intermodal transportation relies greatly on containerisation due to its many advantages. The container limits damage risks for the goods it carries because it is shock resistant and could withstand weather conditions. Besides, containers permit stacking on ships and double stacking on trains (in the USA). Moreover, the container may only be opened at the origin, at customs and at the destination therefore, thefts are reduced, especially those of valuable commodities (Rodrigue et al, 2011). In addition, with the linkage of technology and infrastructures, the safety level of container transportation has been increased through the use of electronic sealing and EDI monitoring. Resultantly, reduces missing and damage cargo, also improve security since this method of transportation eliminates cargo handling. However, containerisation involves heavy capital investments for the development of an intermodal transport system. Investments are required in terminals equipped with container handling cranes, railway terminals for transfer operations and portable cargo/container handling equipment, and also container boxes, cellular container ships, rail flats, truck trailers. Intermodal transport requires efficient transport systems supported by efficient infrastructural facilities so that goods can move smoothly, safely, and rapidly from door to door. A significant amount of time is spent on performing the transfer between modes eventually increases the transportation time. The cost of performing a transfer is also critical. In other words, the facilities needed to make transfers are important. Examples of these are container terminals, container handling equipment, seaports, inland container depots, container freight stations, rail yards, roads, airports, information, and communication technology infrastructure, administrative, warehousing and maintenance facilities. These facilities have equipment that all require large capital investments and incur significant terminal operation costs. Furthermore, to overcome those negative effects of time and cost incurred by performing transfer operations, commodities are therefore consolidated to achieve economies of scale. Some of the major infrastructure facilities include road vehicles that are capable of transporting containers, not only provide local distribution but also long-haul services where rail tracks do not exist. The advantages of road transport are door-to door service capability, flexibility, and speed. Whereas rail transport is used between ports and inland distribution centres separated by long distances since it is less expensive to carry large volumes of cargo over longer distances. Besides, rail traffic has been adapted to carry container traffic, through special designed wagons and container yards. Specialised container trains such as double stack trains offer regular schedules with guaranteed departure and delivery time. In South Africa we have the bathtub rail trucks which assist in preventing the opening of the container doors whilst the containers are on rail.
SCM2 International Transport Management Chapter 7 Multimodal and Internodal Transport ©Global Maritime Learning Solutions Page 11 v 2021 Container ports are supposed to be fully equipped to handle container ships so as to minimise idling of ships. In particular, ports are equipped with container terminals, container handling equipment (including gantry cranes, reach stackers and forklifts) and container yards. The success of a hub port depends on various factors: Economic and political stability, strategic location, high level of operational efficiency, high port connectivity and inland transport facilities, adequate infrastructure, cheaper terminal costs, less stringent customs procedures, adequate information structure such as EDI and a wide range of port services. Singapore, in this case, has competitive advantages over these factors. Besides, Inland Container Depots (ICD) referred to as terminals in South Africa are established to relieve the congestion at the ports and its nearby areas, and allow continuous movement of container traffic beyond ports, thus bringing containers closer to the cargo generating hinterland areas. ICDs serve a significant role of changing the mode of transportation, usually from rail to road and vice versa. ICDs provide the following services: Handling of containers from road, rail, and barges to a temporary storage yard (CY), intermediate storage between various transport modes, receipt and delivery of containers and general cargo, cargo consolidation and distribution, depot functions, maintenance and repair services for container handling equipment, refrigeration equipment, and road chassis. Custom clearance activities at inland depots could help to decrease the dwell time of containers in deep seaports. Container Freight Stations (CFS or Container Depot) is a shipping dock where the main function is to provide loose cargo transfer service and trailer and intermodal conveyance, along with necessary custom formalities. Another important function of a CFS is to consolidate smaller shipments of LCL (Less Container Load) and groupage cargo into full FCL (Full Container Load) shipments. The CFS is normally connected to the nearest ICD by road. From the ICD, the containers are transported to the gateway ports, for direct transportation from and to ports. A CFS thus serves as a cargo segregation centre and work to figure out how the cargo can get to its destination with the fewest interruptions. 5. Intergovernmental Role An intergovernmental agreement ASEAN MT (Multimodal Transport) agreement was signed on 2005. The main purpose of this agreement is to increase efficiency, cut down cost for multimodal transport operators and help companies in entering into partnership on the movement of goods. For example, being one of the member countries, Singapore can benefit from the lower price and more efficient alternatives to ship goods via road from Singapore through Malaysia and into Thailand. Prior to the agreement signed, goods are moved from Singapore to Thailand by sea and inland waterways. The use of feeder vessels is not only slower than movement by road, but it also incurs additional costs such as terminal handling charges. In other words, movement by feeder vessel is port to port, which means final delivery to the consignee by road is still necessary. 6. Conclusion
SCM2 International Transport Management Chapter 7 Multimodal and Internodal Transport ©Global Maritime Learning Solutions Page 12 v 2021 Integration and interconnectivity between modes is vital, which provides scope for more efficient use of the transport system. The integration between modes needs to take place at the levels of infrastructure and other hardware such as loading units, vehicles, telecommunications, operations, and services, as well as the regulatory conditions. Efficient information and communication flows are essential for the management of these chains. They allow advance and instant information exchange, including service availability, negotiation procedures, tracking and tracing, information on disruptions and the flow of transport documents. The system of intermodal transport replaces the conventional fragmented transport system by an integrated system. This system has led to the development of special ships, and the development of relevant ports, rail, and road infrastructure to service the needs of the intermodal infrastructure. 7. References 1. Cheong, Y.W, Lim, S and Sim, T (2008). Multimodal Transport: The Practitioner’s Definitive Guide. 2nd ed. The Singapore Logistics Association. 2. D’Este, G., 1996, An event-based approach to modelling intermodal freight systems, International Journal of Physical Distribution & Logistics Management, Vol. 26 No. 6, 1996, pp. 4-15. 3. Jesus, Combra-Fierro and Rocio, Ruiz-Benitez (2009). Advantages of Intermodal Logistics Platforms: Insight from a Spanish Platform. Supply Chain Management: An International Journal, Vol 14, No. 6, pp.418-421. 4. Rodrigue, J.P., Comtois, C., and Slack, B., (2009) The Geography of Transport Systems, 2nd ed, Taylor & Francis, NY. 5. Crainic, T.G. and Kim K.H. (2005), Intermodal Transportation. 6. Tomlinson, J., 2009, History and Impact of the Intermodal Shipping Container, <http://mysite.pratt.edu/~jtomlins/654/history_and_impact_of_shipping_container.p df>, Accessed on 15th of April 2011. 7. Bektas, T. & Crainic, T. G., 2007, A Brief Overview of Intermodal Transportation, Interuniversity Research Centre on Enterprise Networks, Logistics and Transportation, January 2007, <https://www.cirrelt.ca/DocumentsTravail/CIRRELT-2007-03.pdf>, Accessed on 09th of April 2011. 8. Rodrigue, J. P., Slack, B. & Comtois, C., 2011, Intermodal Transportation, 9. <http://people.hofstra.edu/geotrans/eng/ch3en/conc3en/ch3c6en.html>, Accessed on 18th of April 2011. END OF MODULE