How Multimodal Freight Can Help Your Business
So How Does Multimodal Freight Help Your Business?
We've compiled a short list about the benefits of utilising a freight forwarder like Image International Freight that can offer your business multimodal freight options.
Contract
Intermodal transportation sees each mode of transportation as a different contract. whereas 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.
Flexibility
Intermodal transportation allows the customer to choose the best of each mode of transportation. In multimodal transportation, the entire process is the choice or model provided to the customer based on the service provider’s model.
Delay and Overheads
The supplier should keep track of every delay and complication of each transportation mode. One mode of transportation will not have complete information about the complications and delays in another, which leads to incoherence in intermodal transport. However, with multimodal freight, the entire process is under the control of one service provider, which gives ease to the supplier.
Cost
Intermodal transportation deals with a new contract for every mode of transportation, which increases the overall cost of transportation for the supplier. 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 more cost-efficient than intermodal. Multimodal transportation gives better routing efficiency than intermodal transportation.
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. 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 when choosing multimodal public transportation for an area or city.
The advantages of multimodal transportation are plenty. Companies and businesses use this mode of transport because it is a win-win for the carriers and the customers. Its simplicity in the contract and the cargo flexibility make it the most efficient among businesses.
To discuss how we can best serve your business with multimodal logistics solutions to ensure ease of delivery and reduce freight costs contact us today on +61 2 9773 1378 OR email us info@imageinternational.com.au
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