Advantages of Multimodal Transport

By | June 2, 2017

Multimodal transport is commonly known as referring to a transport operation that is carried out using different modes of transport such as railway, waterway, and airway. A single operator organizes it.

Multimodal transport is a legal concept strictly defined in the United Nations Convention on the International Transport of Goods and other international instruments, where the specified liability regime of the operator differs from those applicable in modal operations.

Key benefits of multimodal transport are:

  1. Minimizes time loss at trans-shipment points: Multimodal transport operator maintains its communication links and coordinates that interchange onward carriage smoothly at transshipment points.
  2. Provides faster transit of goods: The faster transportation of goods is made possible under Multimodal transport reduces the disadvantages of distance from markets and the typing-up of capital.
  3. Reduces the burden of documentation and formalities: The burden of issuing multiple documentation and other formalities connected with each segment of the transport chain is reduced to a minimum.
  4. Saves cost: The savings in money from costs resulting from these advantages are usually reflected in the through freight rates charged by the Multimodal transport operator and also in cargo insurance cost.
  5. Establishes only one agency to deal with: The consignor needs to deal with only the Multimodal transport operator in all matters relating to goods, or delay in delivery of goods at destination.
  6. Reduces cost of exports: Th inherent advantages of Multimodal transport system will help to reduce the cost of exports and improve their competitive position with pricing in the international market segment.