Multimodal Transportation in Logistics
Multi-Modal Transportation
L21C27C
Dr. Akshita Sharma
Asst. Prof. (MSMSR)
MATS University, Pandri, Raipur
(C.G.)
Multi- Modal Transportation L21C27C
1
MODULE I
Transportation Systems & Multi modal
transport- Concept of Multi modal &
Intermodal Transport-introduction to Multi
modal transport, the difference between Multi
modal and Intermodal transport- Type of
transport Modes-detail and characteristics of
air, road, rail, water, pipelines, package
carriers- Need, Aim and Key Issues of Multi
modal transport.
Multi- Modal Transportation L21C27C
2
Transportation Systems & Multi
modal transport
Multimodal transportation or multimodal
shipping refers to
logistics and freight
processes that require multiple modes of
transportation
. For example, one shipment
may involve rail carriers, air cargo freight, as
well as a truck carrier. These are three modes
of transport used in combination to complete a
shipment.
Multi- Modal Transportation L21C27C
3
Transportation Systems & Multi
modal transport
Multimodal transport is handled by a single carrier aka
a
multimodal transport operator or provider
. The
provider relies on a network of smaller carriers or
contractors to do the job, but it's still a single-contract
process for the shipper opting for multimodal transport.
Unlike intermodal shipping, multimodal shipping allows
for the cargo to be handled differently depending on the
responsible carrier.
E.g. the freight will be moved from a container to the
pallets in a truck because of multimodal transport
constraints.
Multi- Modal Transportation L21C27C
4
Concept of Multi Modal
“International multimodal transport’ means the carriage of
goods by at least two different modes of transport on
the basis of a multimodal transport contract from a
place in one country at which the goods are taken in
charge by the multimodal transport operator to a place
designated for delivery situated in a different country”.
The operations of pick-up and delivery of goods carried
out in the performance of a unimodal transport contract,
as defined in such contract, shall not be considered as
international multimodal transport.”
Multi- Modal Transportation L21C27C
5
Concept of Multimodal Transport
Concept of Multimodal Transport in ASEAN
and International Context:
1.International Transport
2.At least mode of transportation
3.One Operator
4.Single Transport Document and Contract of
Carriage.
Multi- Modal Transportation L21C27C
6
Common understanding of
difference between “Intermodal”
and “Multimodal’
Single transport document
(multimodal contract) covering
the whole carriage by several
modes of transport
Goods remain in the same
transport unit (container or road
vehicles) during the entire
carriage by several mode of
transport
“Multimodal transport”
“Intermodal transport”
Multi- Modal Transportation L21C27C
7
Advantage of Multimodal Transport
1. Reduce Complication of Liability of Intermodal
Transport.
2. Dealing with one operator for contract of carriage.
3. Fix the limitation of liability of operator
4. One single contract of carriage for entire routes
5. Door-to-Door Deliverable
Multi- Modal Transportation L21C27C
8
Advantage of Multimodal Transport
6. National Wealth as Hub of Transit
7. Reduction in the costs and time for coordination and
operation of logistics.
8. Increased monitoring of shipments from stage to stage.
9. There is only one company in charge of meeting the
shipment deadline; therefore, there is better control on
management and less risk of merchandise theft or loss
while responsibility lies on just one entity.
10. Scheduling routes, costs, staff, and logistics becomes
easier.
11. The FBL document has preference to enter and go
through customs.
Multi- Modal Transportation L21C27C
9
Disadvantage of Multimodal
Transport
1. The merchandise may encounter legal and
operational limitations when international
standards are applied.
2. For safety reasons, inspections in terminals are
frequent, which limits
Multi- Modal Transportation L21C27C
10
What is Intermodal Transport?
Intermodal Transport definition by OECD (Organisation for
Economic Co-operation and Development) -
“Movement of
goods (in one and the same loading unit or a vehicle) by
successive modes of transport without handling of the goods
themselves when changing modes.”
Intermodal Transport definition by ASEAN Training
Material-
“The Carriage of Goods by MORE than TWO
modes of transport without any handling of the freight when
changing the modes through an intermodal transport chain
with one single contract of carrier. In USA so called
“Containerized Rail Transport”
Multi- Modal Transportation L21C27C
11
What is Intermodal Transport ?
Intermodal Transport definition byEU
Commission Intermodality1977-
“ A
characteristic of transport system that allows at
least two different modes to be used in an
integrated manner in a door-to-door chain”.
Intermodal Transport definition by European
Conference of MTO (ECMT)2003 (same as
OECD)
“The movement of goods in one and the same load
unit or vehicle by successive modes of transport
without handling of the goods
Multi- Modal Transportation L21C27C
12
Concept of Intermodal Transport
1. International Transport
2. At least two modes of transport
3. No handling the goods when changing modes
Several Contracts of Carriage (traditional
concept)
Single Contract of Carriage but liability of
carrier is based on each leg
Multi- Modal Transportation L21C27C
13
Intermodal Transport Advantage
1.
Increased ability to negotiate terms per stage or stretch of the route.
2.
Each supplier is responsible for its service.
3.
Possibility to choose carriers and take advantage of the best rates for
each stage or stretch of the route.
4.
Fewer inspections because containers are sealed in advance.
5.
Because everything is loaded in the same container, the time it takes
for loading and unloading is lower.
6.
Increased flexibility and special handling of loading and unloading
in different ports.
7.
Cheaper insurance premiums.
8.
Consistent Capacity and service such as Rail and truck
9.
Quality Service because choice of selection
Multi- Modal Transportation L21C27C
14
Intermodal Transport Disadvantage
1.
Slower because cost reduction is prioritized.
2.
Less reliability because there are several suppliers
answering for their own services.
3.
Tracking all the suppliers and coordinating solutions
to delays with them.
4.
More expenditures due to the need to coordinate
several contracts with different suppliers.
5.
The infrastructure that makes intermodal
transportation easier for example, cranes for
containers, is scarce and more expensive.
6.
Additional packaging costs to mitigate damage when
moving merchandise.
Multi- Modal Transportation L21C27C
15
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.
Multi- Modal Transportation L21C27C
16
Difference Between Intermodal And
Multimodal Transportation.
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.
Multi- Modal Transportation L21C27C
17
Difference Between Intermodal And
Multimodal Transportation.
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.
Multi- Modal Transportation L21C27C
18
Difference Between Intermodal And
Multimodal 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. 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.
Multi- Modal Transportation L21C27C
19
Difference Between Intermodal And
Multimodal Transportation.
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.
Multi- Modal Transportation L21C27C
20
Mode of transport
It is a term used to distinguish between different ways of transportation
or transporting people or goods. The different modes of transport
are air, water, and land transport, which includes rails or
railways, road and off-road transport. Other modes also exist,
including pipelines, cable transport, and space transport. Human-
powered transport and animal-powered transport are sometimes
regarded as their own mode, but never fall into the other categories. In
general, transportation is used for moving of people, animals, and
other goods from one place to another. Means of transport, on the
other hand, refers to the transport facilities used to carry people or
cargo according to the chosen mode (animal, vehicle, car, airplane,
ship, truck, train and so on and so forth). Each mode of transport has a
fundamentally different technological solution, and some require a
separate environment. Each mode has its own infrastructure, vehicles,
transport operators and operations.
Multi- Modal Transportation L21C27C
21
Air
•
A fixed-wing aircraft, typically airplane, is a heavier-than-air flying
vehicle, in which the special geometry of the wings generates lift and
then lifts the whole vehicle. Fixed-wing aircraft range from small
trainers and recreational aircraft to large airliners and military cargo
aircraft. For short distances or in places without
runways, helicopters can be operable.(Other types of aircraft,
like autogyros and airships, are not a significant portion of air
transport.)
•
Air transport is the fastest method of transport, Commercial jets reach
speeds of up to 955 kilometers per hour (593 mph) and a considerably
higher ground speed if there is a jet stream tailwind, while piston-
powered general aviation aircraft may reach up to 555 kilometers per
hour (345 mph) or more.
Multi- Modal Transportation L21C27C
22
Air
This celerity comes with higher cost and energy use, and aviation's
impacts to the environment and particularly the global climate require
consideration when comparing modes of
transportation. The Intergovernmental Panel on Climate
Change (IPCC) estimates a commercial jet's flight to have some 2-4
times the effect on the climate than if the same CO
2
emissions were
made at ground level, because of different atmospheric chemistry
and radiative forcing effects at the higher altitude.U.S. airlines alone
burned about 16.2 billion gallons of fuel during the twelve months
between October 2013 and September 2014.WHO estimates that
globally as many as 500,000 people at a time are on planes.
Multi- Modal Transportation L21C27C
23
Air
The global trend has been for increasing numbers of
people to travel by air, and individually to do so
with increasing frequency and over longer
distances
, a dilemma that has the attention of
climate scientists and other researchers,
]
the press,
and the World Wide Web. The issue of impacts
from frequent travel, particularly by air because
of the long distances that are easily covered in
one or a few days, is called hypermobility and has
been a topic of research and governmental
concern for many years.
Multi- Modal Transportation L21C27C
24
Rail
•
Rail transport is a means of conveyance of passengers and goods by way of
wheeled vehicles running on rail track, known as a railway or railroad. The rails are
anchored perpendicular to railroad train consists of one or more connected vehicles
that run on the rails. Propulsion is commonly provided by a locomotive, that hauls a
series of unpowered cars, that can carry passengers or freight. The locomotive can
be powered by steam, diesel or by electricity supplied by trackside systems.
Alternatively, some or all the cars can be powered, known as a multiple unit. Also, a
train can be powered by horses, cables, gravity, pneumatics and gas turbines. Railed
vehicles move with much less friction than rubber tires on paved roads, making
trains more energy efficient, though not as efficient as ships.
•
Intercity trains are long-haul services connecting cities; modern high-speed rail is
capable of speeds up to 430 km/h (270 mph), but this requires a specially built
track. Regional and commuter trains feed cities from suburbs and surrounding
areas, while intra-urban transport is performed by high-capacity tramways and rapid
transits, often making up the backbone of a city's public transport. Freight trains
traditionally used box cars, requiring manual loading and unloading of the cargo.
Since the 1960s, container trains have become the dominant solution for general
freight, while large quantities of bulk are transported by dedicated trains.
Multi- Modal Transportation L21C27C
25
Road
Bus, cars and bicycles
Trams, lorries, cars, bicycles and rickshaws, 1945
A road is an identifiable route of travel, usually surfaced with gravel, asphalt
or concrete, and supporting land passage by foot or by a number of
vehicles.
The most common road vehicle in the developed world is the automobile, a
wheeled passenger vehicle that carries its own motor. As of 2002, there
were 591 million automobiles worldwide. Other users of roads
include motorcars, motorcycles, buses, trucks, bicycles and pedestrians,
and special provisions are sometimes made for each of these. For example,
the use of bus lanes give priority for public transport, and cycle
lanes provide special areas of road for bicycles to use.
Motorcars offer high flexibility, but are deemed with high energy and area use,
and the main source of noise and air pollution in cities; buses allow for
more efficient travel at the cost of reduced flexibility.
Road transport by
truck is often the initial and final stage of freight transport.
Multi- Modal Transportation L21C27C
26
Water
Water transport is the process of transport that a watercraft, such as a bart, ship or sailboat, makes
over a body of water, such as a sea, ocean, lake, canal or river. If a boat or other vessel can
successfully pass through a waterway it is known as a navigable waterway. The need for
buoyancy unites watercraft, and makes the hull a dominant aspect of its construction,
maintenance and appearance. When a boat is floating on the water the hull of the boat is
pushing aside water where the hull now is, this is known as displacement.
In the 1800s, the first steamboats were developed, using a steam engine to drive a paddle
wheel or propeller to move the ship. The steam was produced using wood or coal. Now, most
ships have an engine using a slightly refined type of petroleum called bunker fuel. Some
ships, such as submarines, use nuclear power to produce the steam. Recreational or
educational craft still use wind power, while some smaller craft use internal combustion
engines to drive one or more propellers, or in the case of jet boats, an inboard water jet. In
shallow draft areas, hovercraft are propelled by large pusher-prop fans.
Although slow, modern sea transport is a highly effective method of transporting large quantities
of non-perishable goods. Commercial vessels, nearly 35,000 in number, carried 7.4 billion
tons of cargo in 2007.
Transport by water is significantly less costly than air transport for
transcontinental shipping; short sea shipping and ferries remain viable in coastal areas.
Multi- Modal Transportation L21C27C
27
Pipelines
Pipelines can refer to gathering systems (wellhead to processing
facilities), transmission lines (supply areas to markets), or
distribution pipelines (most commonly to transport natural gas
to medium or small consumer units).Pipelines play a very
critical role in the transportation process because most of the
oil moves through pipelines for at least part of the route. After
the crude oil is separated from natural gas, pipelines transport
the oil to another carrier or directly to a refinery. Petroleum
products then travel from the refinery to market by tanker,
truck, railroad tank car, or pipeline. As natural gas production
grows in the United States, demand for new pipeline
construction has been increasing. The United States has about
300,000 miles of natural gas transmission pipelines.
Multi- Modal Transportation L21C27C
28
Pipelines
Strategic planning involves determining the shortest and most
economical routes where pipelines are built, the number of pumping
stations and natural gas compression stations along the line, and
terminal storage facilities so that oil from almost any field can be
shipped to any refinery on demand.
Offshore pipelines carry more
risk for leaks and environmental impact than onshore pipelines, but
technological advancements in pipeline material and monitoring
systems have improved pipeline safety and efficiency. Standards
exist for safety in the design and construction of pipelines, and are
published by organizations such as the International Organization
for Standardization (ISO) and the American Petroleum Institute
(API). The Federal Energy Regulatory Commission (FERC)
regulates the interstate transportation of natural gas and oil, and
approves LNG terminals and natural gas pipelines. Before FERC
was created in 1977, Interstate Commerce Commission was
responsible for regulating oil and gas transportation
Multi- Modal Transportation L21C27C
29
Parcel Carriers
All e-retailers rely on the major
parcel carriers
to handle critical “last mile”
delivery of packages to the customer’s doorstep. While most fulfillment
operations use all the big parcel carriers to some degree, most favor one
specific carrier that best suits the needs of their operation. If you’re
wondering how to determine the best parcel carrier for your ecommerce
shipping needs, read on.
Figuring Out the Best Parcel Carrier for Your Needs-
The big-name
carriers dominate the parcel space – the United States Postal Service
(USPS), UPS, FedEx, and DHL. Larger online sellers may also rely on a
network of smaller regional carriers to supplement last-mile delivery in
bigger cities. Even if you have a 3PL providing
parcel shipping
services
on your behalf, that 3PL uses some combination of the above to
get your packages into your customers’ hands. The services of these
carriers are similar, but different enough that zeroing in on the right one for
your specific requirements can enhance your customer experience
and
reduce parcel freight costs
.
Multi- Modal Transportation L21C27C
30
Need of Multimodal Transportation
Package Weight-
Dimensional weight, or DIM weight, is a technique used by
parcel carriers to determine the cost of shipping parcels and incentivize
customers to streamline packaging size. The height, width, and length of
the package are multiplied together, and the total gets divided by a set
divisor to determine its DIM weight. Parcel carriers charge for actual
weight or DIM weight rounded up the nearest whole pound (whichever is
higher). If you move a lot of large packages, examine the current
dimensional weight pricing models of each carrier to see if a particular
carrier has more affordable rates for your most common parcels.
•
It’s important to note that 3PLs shipping a high volume of parcels,
like
Amware Fulfillment
, will negotiate a more favorable DIM factor (a
higher divisor) – so the published rates from the carriers don’t tell the
whole story. For instance, a 14-pound package by DIM weight could be
charged at a 10-pound rate with a favorable DIM factor applied.
Multi- Modal Transportation L21C27C
31
Need of Multimodal Transportation
•
Let’s take a look at those published carrier rates by taking a package with 16x12x10
dimensions and putting it through the dimensional weight formula of each major
carrier:
•
USPS.
The USPS uses a standard DIM divisor of 166, so 16x12x10 = 1920. 1920 ÷
166 comes out to 11.57 pounds. With USPS, your parcel’s DIM weight is 12 lbs. If
the actual weight of your package is less than 12 lbs., you will be billed for
shipping a 12-lb. package. If the actual weight is higher, you get billed for the
actual package weight.
•
In terms of DIM weight, USPS and UPS offer a more cost-effective choice for
shippers of large parcels with an actual weight lower than their DIM weight, but
that’s only if customers set up daily pick-ups that allow them to pay Daily Rates
rather than Retail Rates.
•
In terms of actual weight, most of the private carriers have a minimum parcel
weight of one pound. Shippers moving high volumes of small packages that weigh
less than a pound – for example, nutraceutical businesses – will benefit most from a
relationship with USPS so they don’t get overcharged on low-weight packages.
•
Bottom line: DIM weight is a critical factor. Don’t ignore the huge savings potential
of aligning with a 3PL that has negotiated a favorable DIM factor with one or more
of the major parcel carriers.
Multi- Modal Transportation L21C27C
32
Need of Multimodal Transportation
Transit Time-
Transit time expectations weigh heavily into parcel carrier selection.
Some shippers put a lot of stock into shipping times, but others may not care if the
package takes a week to arrive. When determining the best parcel shipping option,
you have to carefully consider your time constraints and customer expectations to
determine which carrier provides the most affordable service within that window.
Total Shipping Cost
•
If you’re shipping a $5 product, you can’t afford a $20 shipping charge to get it to
your customer in two days. Consider your service options for each carrier. For
example, if your customer is within the first few
shipping zones
, the package will
probably arrive within the two-day window even using a cheaper standard ground
delivery service, versus an expedited option.
•
Rates vary widely depending on the carrier and specific shipping service you
choose. Here are some tips about each carrier’s costs to inform your choice:
Multi- Modal Transportation L21C27C
33
Need of Multimodal Transportation
Communication-
First and foremost, we need to talk about coordination. Multimodal
movement wins over intermodal movement due to much clearer communication.
Talking to one carrier company or service is enough to make freight
logistics complicated. Coordination with multiple carriers can decrease efficiency
and lead to loading and shipment delays. Keeping the movement down to a single
contract means better overall control of transit and less contracts-related work for
your legal department.
Accountability-
Speaking of contractual obligations, a multimodal movement also
means that only one agent or provider is responsible for the movement of the freight.
The tricky part of managing a supply chain is
tracking and holding individual
shippers and suppliers accountable
for delays and wasted resources. Having one
agent responsible for the freight is even referred to as "door-to-door" coverage,
meaning your shipment is secured by one company. A single-contract mode will
save you hours of freight management and bring the operational cost down.
Multi- Modal Transportation L21C27C
34
Accessibility -
Unless you're shipping fragile freight or any freight
across the ocean, which entails movement between ports, keeping
the cargo in one container means worse access for the carriers.
Meanwhile, a combination of different modes of transport means
that each mode comes with its own
constraints
.
Deadlines-
Delivery is good when it's on time and in full (OTIF).
Supply chain efficiency, logistics management, and customer
satisfaction all depend on the shipping deadlines being met.
A clear benefit of multimodal movement is that you minimize delivery
delays by giving one company control over the entire freight.
Door-to-door, after all, means that shippers and carrier providers are on
the same page with shipments are order fulfillment. Going with
multimodal shipping over intermodal shipping helps you reduce the
risk of delays and keep customer satisfaction consistently high.
Key Issues of Multi Modal Transport
Multi- Modal Transportation L21C27C
35
Key Issues of Multi Modal Transport
Excessive paperwork-
Even though intermodal and multimodal
movements are different in terms of the number of contracts you
have to deal with, multimodal shipping can still be bothersome in
terms of paperwork.
For example, you've settled on a carrier company that handles
multimodal transport for you. Your job as a shipper is done here,
right?
The bad news is, the company can still invoice you for different
services, i.e. each leg of transportation.
As you spend more and more time processing each paper invoice, the
overall shipping cost keeps growing. This is a sign for the transport
and logistics industry to go paperless.
Challenge
: paper invoices for different services individually.
Solution
: paperless delivery management systems that support e-sign
and photo proof of delivery.
Multi- Modal Transportation L21C27C
36
Key Issues of Multi Modal Transport
Poor tracking & coordination
In long-haul freight, tracking a single shipment can require a combination of resources
even when transportation boils down to one shipper and one carrier. Even inland
movement can be tricky to monitor, let alone air cargo freight and port-to-port ocean
shipments.
Challenge
: poor tracking and the need for constant updates.
Solution
: track and trace as well as automatic shipment notifications.
Supply chain disruptions
In 2023, no shipper is immune to supply chain disruptions. The pandemic has posed
many challenges to both intermodal and multimodal transport systems, and the
logistics industry is still taking a blow to this day.
Especially with different modes of transport involved, shippers need to have security
that in reality means being prepared for supply chain disruptions and having
different intermodal and multimodal solutions as alternatives.
Challenge
: safety concerns, disrupted service, and inflated shipping costs.
Solution
: switching to local suppliers and investing in local distribution networks.
Multi- Modal Transportation L21C27C
37
Assignment
Q.1. Differentiate between Multi modal & Inter
modal Transport.
Q.2. Explain about mode of transport.
38
MODULE II
How to organize Multi modal transport-Role of
Containerization in MMT-history, utility,
types, ease of handling, cost saving-Types of
Multi modal transport-combined container
transport, rolling road & forwarding of trailers,
RORO & LASH transportation- National
Multi modal Transport Committee (NMTC)
and Logistics Policy of India-key features and
importance.
Multi- Modal Transportation L21C27C
39
How to organize Multi modal
transport?
Multimodal transportation includes
walking,
biking, transit, rail, cars and trucks
.
Multimodal transportation is the movement of
people and goods on roadways, including but
not limited to, motorists, transit-riders, freight-
carriers bicyclists and pedestrians, including
those with disabilities.
Multi- Modal Transportation L21C27C
40
How to organize Multi modal
transport?
Multi-modal planning refers to planning that considers various
modes (walking, cycling, automobile, public transit, etc.) and
connections among modes. There are several specific types of
transport planning which reflect various scales and objectives:
Traffic impact studies evaluate traffic impacts and mitigation
strategies for a particular development or project.
Local transport planning develops municipal and neighborhood
transport plans.
Regional transportation planning develops plans for a
metropolitan region.
State, provincial and national transportation planning develops
plans for a large jurisdiction, to be implemented by a
transportation agency.
Multi- Modal Transportation L21C27C
41
How to organize Multi modal
transport?
Strategic transportation plans develop long-range plans,
typically 20-40 years into the future.
Transportation improvement plans (TIPs) or action
plans identify specific projects and programs to be
implemented within a few years.
Corridor transportation plans identify projects and
programs to be implemented on a specific corridor,
such as along a particular highway, bridge or route.
Mode- or area-specific transport plans identify ways to
improve a particular mode (walking, cycling, public
transit, etc.) or area (a campus, downtown, industrial
park, etc.).
Multi- Modal Transportation L21C27C
42
How to organize Multi modal
transport?
A transport planning process typically includes the following steps:
Monitor existing conditions.
Forecast future population and employment growth, and identify
major growth corridors.
Identify current and projected future transport problems and needs,
and various projects and strategies to address those needs.
Evaluate and prioritize potential improvement projects and
strategies.
Develop long-range plans and short-range programs identifying
specific capital projects and operational strategies.
Develop a financial plan for implementing the selected projects
and strategies.
Multi- Modal Transportation L21C27C
43
Transport-Role of Containerization
in MMT-history
The history of containerization is a development that can be
pinpointed to the mid-20
th
century. Pioneered by an US-based
conveyance businessman Malcolm Mclean, cargo containers
were fashioned in a bid to simplify the long-drawn processes
involved in shipping of cargo through sea routes.
The extremely lengthy processes primarily meant that the cargo
had to be suitably dismantled or separated before it could be
loaded into the ships. This meant that effective labor was
wasted in the initial dismantling and the later assembling
procedures, and huge amounts of cargo had to be sub-divided
merely because of technical restrictions and there was
absolutely no standardization in the entire shipping processes.
Multi- Modal Transportation L21C27C
44
Transport-Role of Containerization
in MMT-history
Malcolm Mclean circumvented this protracted cargo
transportation issue by modifying the basic structuring of a
Second World War tanker vessel. The initial cargo containers
utilized in the vessel were modified as well, and were wheel-
less truck-carts. The entire success of such a novel initiative
however depended on whether the modified truck-carts laded
with cargo could be successfully placed into the vessel and
thus transported to the necessary destination.
Exceeding expectations, the ingeniously devised contraption
proved to be a huge success. This success meant that for the
foreseeable future, shipping cargo – bulk or otherwise – could
be carried out with the least possible problems.
Multi- Modal Transportation L21C27C
45
Salient Features of Containerization
Transiting costs for the cargo to be shipped were reduced
drastically on account of the elimination of the unwanted
processes
Large amount of cargo could be transported which meant that
transporters benefited from the economies of scale
The feasibility offered by shipping containers also ensured that
the water navigable channels could be utilized for transiting
freight internationally
Development of harbor facilities also took place simultaneously
once the qualitative worth of container shipping began to
spread far and wide
Multi- Modal Transportation L21C27C
46
Noteworthy Development
A major noteworthy development in the history of container
ships was realized when major maritime organisations
acknowledged the singularity that shipping containers offered
to the marine domain. This acknowledgement was also marked
by the establishment of set rules and regulations with respect
to the sizing of the containers. In order to bring a common
platform to all containers, the International
Standardizing Authority (ISO) established the following:
•
Containers that measured 20-feet lengthwise. Such containers
were soon referred to as TEUs (Twenty-foot Equivalent Units)
•
Containers that measured 40-feet lengthwise. Such containers
soon came to be referred as FEUs (Forty-foot Equivalent
Units) or more commonly, as Two-TEUs
Multi- Modal Transportation L21C27C
47
Detrimental Effects to the Cargo
Shipping Sector
Although containerization provided a breakthrough in the global
shipping sector, there were several adverse effects that were
felt because of the changes it wrought.
The labour force that was otherwise employed in the dismantling
and the assembly-line operations, prior to the development of
cargo containers started to become redundant
Motorized operational links meant that lesser number of labour
force needed to be involved in the lading and unloading of the
freight to be shipped
Semi-skilled labour force and even skilled labour force, engaged
in carrying out only one kind of operations at harbor facilities
were also negatively impacted
Multi- Modal Transportation L21C27C
48
Present-era: Container Shipping
In the over 50-years of the initiation of shipping
containers into mainstream maritime freight operations,
a lot of advancement has been made. Today the global
cargo shipping spectrum has widened to really
enormous proportions while also helping several newer
shipping conglomerates and even countries to enter the
fray.
With the extent of containerized operations and
technological developments in the same increasing
almost every day, it wouldn’t be wrong to say that
cargo movement in the present times cannot be
visualized to fruition in the absence of container
shipping
Multi- Modal Transportation L21C27C
49
Utility of Multi Modal
Transportation
Saving Money. The leading benefit of shipping
multimodal is that it can save you a ton of
money if performed properly. ...
Improved Communication. Multimodal shipping
involves communication between multiple
parties in order to keep things running
smoothly. ...
Faster Transit.
Multi- Modal Transportation L21C27C
50
Types of Multi Modal
Transportation
Multimodal transportation includes
walking,
biking, transit, rail, cars and trucks
.
Multimodal transportation is the movement of
people and goods on roadways, including but
not limited to, motorists, transit-riders, freight-
carriers bicyclists and pedestrians, including
those with disabilities
Multi- Modal Transportation L21C27C
51
Combined Container
We manufacture containers that combine
different usage purposes, e.g. Containers with
an office in one part and a storage or
technical/control room in the other. In
designing the specific usage purpose, we either
produce containers using our own construction
process or rebuild standardized shipping
containers.
Multi- Modal Transportation L21C27C
52
Rolling Road
You save money, time and hassle while protecting the environment.
The rolling road (ROLA) combines road and rail transport. Whole
trucks and semi-trailers cover stages of their journey by rail.
•
Cost savings
: Reduced fuel consumption, no tolls, increased
turnover and productivity
•
Time savings
: No traffic jams, no weekend, holiday or overnight
driving restrictions
•
Safety
: ROLA travel is recognized as a statutory rest period and our
trains have high safety standards
•
Positive environmental impact
: Low noise pollution, reduced
CO
2
emissions
•
Positive image
: Improvement in your company's ECO balance
(CO
2
savings).
53
Forwarding of trailers
A
trailer
is an unpowered vehicle towed by a powered vehicle. It is
commonly used for the transport of goods and materials.
Sometimes recreational vehicles, travel trailers, or mobile homes with
limited living facilities where people can camp or stay have been
referred to as trailers. In earlier days, many such vehicles were
towable trailers.
In the United States, the term is sometimes used
interchangeably with travel trailer and mobile home, varieties of
trailers and manufactured housing designed for human habitation.
Their origins lay in utility trailers built in a similar fashion to horse-
drawn wagons. A trailer park is an area where mobile homes are
placed for habitation.In the United States trailers ranging in size
from single-axle dollies to 6-axle, 13-foot-6-inch (4.11 m) high, 53-
foot (16.15 m) long semi-trailers are commonplace. The latter,
when towed as part of a tractor-trailer or "18-wheeler", carries a
large percentage of the freight that travels over land in North
America.
54
RORO & LASH transportation
Roll-on/roll-off (RORO or ro-ro) ships are cargo ships designed to carry wheeled cargo, such as
cars, trucks, semi-trailer trucks, trailers, and railroad cars that are driven on and off the ship
on their own wheels or using a platform vehicle, such as a self-propelled modular transporter.
Ro-Ro is an acronym for Roll-on/roll-off. Roll-on/roll-off ships are vessels that are used to
carry wheeled cargo.
The roll-on/roll-off ship was defined in the November 1995 amendments to Chapter II-1 of
the International Convention for the Safety of Life at Sea (SOLAS), 1974 as being “a
passenger ship with ro-ro cargo spaces or special category spaces”
The ro-ro ship is different from Lo-Lo (lift on-lift off) ship that uses a crane to load the cargo. The
vehicles in the ship are loaded and unloaded by means of built-in ramps. Normally these
ramps are made towards the stern (backside) of the ship. In some ships, they are also found on
the bow side (front) as well as the sides. The vessel can be of both military and civilian types.
Ro-Ro vessels were being built in the 19th century to transport trains, too wide for the bridges,
across rivers.An example of a Ro-Ro vessel is the Firth of Forth ferry which started
operations in 1851. The rails were laid on the ship so that it could be connected to the ones on
land. A train would then simply roll onto the ship and then roll off at the other end.
There are various types of ro-ro vessels, such as ferries, cruise ferries, cargo ships, and barges.
The ro-ro vessels that are exclusively used for transporting cars and trucks across oceans are
known as Pure Car Carriers (PCC) and Pure Truck & Car Carriers (PCTC) respectively.
55
RORO & LASH transportation
Unlike other cargos that are measured in metric tonnes, the ro-ro cargo
is measured in a unit called lanes in meters (LIMs). LIM is
calculated by multiplying cargo length in meters by the number of
decks and by its width in lanes. The lane width will differ from
vessel to vessel and there are a number of industry standards.
The largest ro-ro passenger ferry is MS Color Magic. It weighs 75,100
GT (Gross Ton). It entered the service in September 2007 for Color
Line. It was built in Finland by Aker Finnyards. The ferry is 223.70
m long, 35 m wide and can carry 550 cars as well as 1270 lane
meters of cargo.
The ro-ro passenger ferry with the greatest car-carrying capacity is the
Ulysses. The ferry was named after a novel by James Joyce and is
owned by Irish Ferries. It entered the service on 25 March 2001 and
operates between Dublin and Holyhead. It weighs 50,938 GT and is
209.02 m long and 31.84 m wide. It can carry 1342 cars and 4101
lane meters of cargo.
56
RORO & LASH transportation
Advantages of a ro-ro ship
A ro-ro ship offers a number of advantages over traditional ships. Some
of the advantages are as follows:
For the shipper, the advantage is speed. Since cars and lorries can drive
straight on to the ship at one port and then drive off at the other port
within a few minutes of the ship docking, it saves a lot of time of the
shipper.
It can also integrate well with other transport development, such
as containers. The use of Customs-sealed units has enabled frontiers
to be crossed with the minimum of delay. Therefore, it increases the
speed and efficiency of the shipper.
The ship has also proved extremely popular with holidaymakers and
private car owners. It has significantly contributed to the growth of
tourism. A person can take his car from one country to another by
the sea with the help of a ro-ro vessel.
57
National Multi modal Transport
Committee (NMTC)
Multi-modal integration along with digitization and centre-state cooperation on the same, forms
the core of the National Logistics Policy (NLP), launched by Prime Minister Narendra
Modi on Saturday. In line with previous plans such as the National Rail Plan and Maritime
India Vision, NLP intends to bring sweeping changes in the current costly, polluting, and
congesting modal mix of Indian logistics.
It is expected to facilitate a modal shift in logistics from the current over dependence on roads
(over 60 per cent share currently versus 25 per cent globally) to railways (30 per cent
currently vis-a-vis 60 per cent globally) and waterways (5 per cent currently). Multi-trillion
flagship projects such as Sagarmala, Bharatmala, and dedicated freight corridors are already
working in this direction.
During the launch, PM Modi asserted that the reduction in logistics cost is a crucial variable in
the country’s export competitiveness, and bringing existing policies in synergy with new
infrastructure is a big step in that. direction. “If there is one policy that will support NLP the
most, it’s the PM-GatiShakti NMP,” Modi said. “I am happy that today all states and central
ministries have been integrated into the platform, and almost all departments have started
working collectively. A database of various infrastructure projects by the central and state
government has been prepared.”
58
National Multi modal Transport
Committee (NMTC)
India ranks 47th in the World Banks’ Logistics Performance Index
today, with infrastructural clogs and mismatches in all three major
transportation modes—roads, rail, and waterways (including ports).
The plan now is to bring the cost of logistics down to single digits as
a percentage of GDP from 14-18 per cent currently.
The broad contours of the policy include a comprehensive logistics
action plan (CLAP), a new set of warehousing standards, a digital
ease of logistics dashboard (E-LogS), and the unifield logistics
interface platform (ULIP), which was so far being used by central
departments on a pilot basis. “The warehousing standards aim to
reduce discrepancies between warehouses across states. Currently,
there are a majority of small, scattered warehouses, which is a loss-
making deal for both their operators and manufacturers,” an analyst
said.
Digitization and transparent logistics visibility, if implemented
properly, would benefit large scale movers such as shipping
companies.
59
National Multi modal Transport
Committee (NMTC)
“The focal push for digitization through platforms like ULIP and E-LogS is crucial to
support the designed services improvement framework in improving regulatory
interoperability, standardization of logistic processes and in bringing the entire
multimodal network onto a single digital dashboard, enhancing visibility and
transparency for all stakeholders,” said Rizwan Soomar, chief executive officer and
managing director, DP World Subcontinent.
Experts said that it’s important for the Centre to gradually pull its levers, starting with
synchronising the root of the problem through PM Gati-Shakti — planning, which
until now, was happening in departmental silos.
Effective implementation of the policy would also depend on support from individual
states, said Arindam Guha, Leader & partner Government & Public Sector, Deloitte
India. "Critical areas such as first & last mile connectivity, transport, industrial
development etc. together with associated regulatory approvals falling under States'
jurisdiction. The Centre seems to have already made considerable headway in
getting their buy-in with over 15 states having announced their own logistics
policies which are more or less aligned with the National Logistics Policy and also
having on boarded most states on the Gati Shakti platform,” Guha said.
60
Logistics Policy of India-key features
and importance
National Logistics Policy 2022 -
First, we will understand the term
“logistics”. The term “logistics” refers to a broad category of facilities that
are essential to commercial activity. These establishments involve
transportation services for both the transportation of goods, storage
infrastructure that is especially important for the trade in perishable
products, including food products, fruits, and veggies, and the efficient
operation of government services that support commercial activity, such as
licensing and norms.
The
National Logistics Policy
was made so that the Indian logistics sector
could become a key driver of economic growth. This will be done by
making businesses, government agencies, and society as a whole work
together better and more closely. Study Says: India’s logistics costs are
13% of GDP. Developed nations don’t have this problem. High logistics
costs impair India’s competitiveness. Gujarat, Punjab, and Haryana topped
the different states’ rankings. But we need a lot of improvements.
Sarthi Parivahan Sewa -
National Logistics Policy is a comprehensive effort
to enhance efficiency of the logistics ecosystem in India.
61
Logistics Policy of India-key features
and importance
New National Logistics Policy Overview-
Policy Name National Logistics Policy
Launch date21 September 2022Launch By Prime Minister Narender
Modi Objectives infrastructures to economic zones.
National Logistics Policy Objectives-
The goal of the policy is to build a logistics
ecosystem in India that is technology-enabled, integrated, cost-effective, self-
reliant, feasible, and dependable. This will help India grow quickly for everyone.
With the National Logistics Policy, India will try to get its logistics costs down to
the same level as world standards by 2030.
This will also help create data-driven tools that help people make decisions for a better
logistics environment. By better integrating the distribution network, this strategy
will save logistics and inventory costs, increase agility, and improve responsiveness
while also lowering obstacles. New centers of development will be created with the
help of the Multi-modal Logistics Park, which identifies 35 places around the
nation. India hopes that it will be able to achieve its goal of being among the top 25
nations in the Logistics Performance Index rating by the year 2030 if it is able to
successfully execute its National Logistics Policy. The strategy aims to
strengthen
PM Modi’s Gati Shakti
–National Master Plan by providing intermodal
infrastructures to economic zones.
62
Logistics Policy of India-key features
and importance
Driving Licence Apply Online Logistics Services Platform Launched
In accordance with the National Logistics Strategy, a brand-new online site known as
Ease of Logistics Services – E-Logs has been initiated. “Through this platform,
industry organizations would be able to directly take up any such issues with the
government entities that are creating difficulties in their operations and
performance. According to Modi had to say, “a comprehensive framework has also
been put in place for the swift settlement of such matters.”
How the Government is Improving Logistics
Previous programs and plans to improve logistics were FASTag for electronic toll tax
collection and faceless customs inspection. The largest of these plans is Gati Shakti.
A lot of material on state infrastructure investments has been compiled.” The PM
Gatishakti site has 1500 layers of national and state government data.
Ministries now have a single platform to track infrastructure projects. According to the
Government, the Center aims to build 200 airports, helipads, and water aerodromes
over the next 4 to 5 years and roughly double the current natural gas pipeline
network of 19,000 km.
63
Logistics Policy of India-key features
and importance
New Driving Licence Rules National Logistics Policy Benefits and Features
Features and focal points of the policy are listed below:
In 5 years, the program should lower logistics costs from 15% of India’s GDP to 8%. India must minimize
logistics costs to promote exports and domestic product efficiency. Reduced logistics costs boost
efficiency across several industries, supporting wealth creation and entrepreneurship.
The government aims to be among the top 25 countries in the Logistics Performance Index (LPI) by 2030.
The NLP will include the Unified Logistics Interface Platform. It would unite transportation-related online
services into a unified platform, saving exporters time and resources.
Ease of Logistics Services will allow companies to immediately contact government agencies with questions
and complaints.
Indian logistics is unstructured yet large. The policy aims to promote block chain and AI adoption in the
country and organize the mega-market.
Every Indian state needs a Logistics Coordination Committee. Each state’s performance will be evaluated
annually using the LEADS index. The central government will give a template for improving logistical
efficiency, allowing states to build their own systems.
This sector includes 20 major and 40 subordinate government agencies. 50 IT centers, banks, insurance firms,
37 export promotion committees, 200 shipping companies, 36 logistics services, 129 inland container
depots, 168 container freight terminals
64
Assignment
Q.1. How to organize Multi Modal Transport?
Q.2. Explain different between RORO & LASH
transport.
65
MODULE III
Multi modal transportation Act & Procedures-
MMTG Act of 1993-Custom procedures for
Export & Import- Bill of Lading- Hague Rules,
Visby Rules, Hamburg Rules, Voyage by Sea-
INCOTERMS-meaning, explanation, list, and
types.
66
Multi modal transportation Act &
Procedures- MMTG Act of 1993
Multimodal transportation of goods is the transportation of goods (
under a single
contract between a consignor and a carrier
) from one place to another through at
least two (
2
) modes of transportation. Carriers engaged in the business of freight
forwarding may employ a combination of the various means of transportation
available (
including by way of roadways, waterways, airways, transport by rail
etc.
) to ensure that goods which are sought to be transported by a consignor to a
consignee involve minimal costs and reach at faster speeds. MTOs may also act as
clearing agents (
licensed under the Customs Act, 1962
) who also assist in the
import and export of goods across jurisdictions after obtaining due qualifications,
approvals and licenses (
as applicable
) under the Customs Act, 1962 and the rules
and regulations thereunder.
This article seeks to give an overview of certain fundamental legal aspects governing
multimodal carriage of goods, registration of multimodal transport operators, other
laws governing the carriage of goods and a peek into prospective regulatory
evolution.
67
LAWS GOVERNING MULTIMODAL
TRASPORTATION OF GOODS AND SERVICES
OVERVIEW:
In India, Multimodal Transport Operators are governed by the Multimodal Transportation of
Goods Act, 1993 (
"MMTG Act”
) and the Registration of Multimodal Transport Operators Rules, 1992
(
“MTO Rules”
). Additionally, the Directorate General of Shipping (
“DGS”
) has issued the “MTO
Branch Circular No. 1 of 2010” which prescribes the Procedure for issuance of Registration/ Renewal as
Multimodal Operator License under the MMTG Act (
“Procedure Circular”
).
KEY TERMS AND DEFINITIONS UNDER THE MMTG ACT: Who/ What are “multimodal
transport operators” (“MTOs”) and what goods can be transported by an MTO?
MTOs are persons/ entities who assume responsibility for the performance of consignment of goods
transported under a ‘multimodal transport contract’ and are registered as MTOs under the MMTG Act. A
registered MTO can transport any “good” including live animals, containers, pallets or other items or
packaging supplied by a consignor.
What is a Multimodal Transport Document (“MTD”)?
An MTD is a document executed by an MTO and a consignor evidencing a contract for the transportation of
goods by the MTO against payment of freight charges. While “bills of lading” are consignment
documents issued by carriers of goods (
generally in the field of export and import
), an MTD is a specific
type of a bill of lading issued by MTOs when goods are transported through at least two modes of
transport and are distinct from individual bills of lading that MTOs may obtain from other carriage
operators (
if such carriage is outsourced
).
68
REGISTRATIONS AND
AUTHORITIES
Operators who are engaged for the transportation/ carriage of goods by the public are accountable
under law and are required to be identifiable and liable for any breach of services provided by
them.
Authority:
The DGS is the supervising authority for the purpose of the MMTG Act.
Mandatory Registration:
Under the MMTG Act and the MTO Rules
all MTOs are to be
mandatorily registered
with the DGS to commence operations.
Eligibility:
Applicants are required to have a minimum annual turnover of Rs. 50 Lakhs (
as
certified by a practicing Chartered Accountant
) and if an applicant is a corporate entity, a
minimum share capital of Rs. 50 Lakhs is required. Applicants are also required to have
personnel/ officers/ employees in not less than 2 countries. Additionally, the DGS may
prescribe any other conditions for eligibility of applicants from time to time.
How to Apply:
The Procedure Circular prescribes the manner in which an application for
registration as an MTO is to be made to the DGS. Additionally, the DGS has also published
SOPs to be followed at the time of applying for registration.
69
REGISTRATIONS AND
AUTHORITIES
Application Fee:
An application fee of Rs. 10,000/- (
Rupees Ten Thousand Only
) is to
be paid along with the application.
Failure to comply with the Act: N
o penalty or liability is prescribed against non-
registered MTOs.
Resolution of Disputes:
All disputes concerning carriage of goods are “commercial
disputes” and therefore disputes between MTOs and consignors are dealt with
under the Commercial Courts Act, 2015 before the commercial court of appropriate
jurisdiction. MTOs and consignors have the option to opt for arbitration as a means
of dispute resolution under the MTD.
Carriage by Road:
Transportation of goods only by road is governed by the Carriage by
Road Act, 2007 (
“Road Act”
). The Road Act provides for the regulation of
“Common Carriers” who are to be mandatorily registered with the State/ Regional
Transport Authority (
as applicable
) under the Motor Vehicles Act, 1988.
Carriage by Sea:
The carriage of goods by sea is governed by the Carriage by Sea Act,
1925. Though no registration is required under the said Act, ship owners are
required to register their ships for the carriage of cargo under the Merchant
Shipping Act, 1958.
70
OTHER LAWS GOVERNING THE
CARRIAGE OF GOODS AND SERVICES
Carriage by Air:
Transportation of goods by air carriage is governed by the Carriage by
Air Act, 1972 which deals with the responsibilities and liabilities or air carriers.
Carriage by Rail:
Consignors also have the option of transporting goods through the
extensive network of railways in India which is governed by the Railways Act, 1989.
EVOLVING REGULATIONS
A committee constituted by the DGS has noted that the MMTG Act does not prescribe
any penalty for non-registration of MTOs nor are there any incentives to promote such
registrations and has therefore recommended that the law needed updation to move
towards effective self-regulation.
In July 2020, the Special Secretary to the Ministry of Commerce announced that the
Government was considering replacing the MMTG Act with a full-fledged,
comprehensive national logistics law (
tentatively named as the National Logistics
Efficiency Advancement Predictability and Safety Act (
“NLEAPS”
)
) to promote the
growth of the logistics sector and to thereby promote trade and exports and increase
the competitiveness of Indian products in international markets.
71
1993-Custom procedures for Export
& Import
We outline the steps involved in importing of
goods.
•
Obtain IEC. ...
•
Ensure legal compliance under different trade
laws. ...
•
Procure import licenses. ...
•
File Bill of Entry and other documents to
complete customs clearing formalities. ...
•
Determine import duty rate for clearance of
goods.
72
BILLS OF LADING
A Bill of Lading is a legal document that has a few important functions in shipping and logistics.
It is firstly a contract between the shipper, carrier and consignee stating what goods are being
shipped, where the shipment is coming from and where it’s headed to.Now if you’re new to
logistics, terms like shipper, carrier and consignee can be confusing – so let’s clear it up:
The shipper –
Is responsible for packing and preparing the shipment for transportation. This
might be your supplier, or your own warehouse/manufacturer.
The carrier –
Is the party that moves the cargo. So, through Twill this would be our colleagues at
Maersk – or any shipping line, haulage company or airline that carries your cargo.
Consignee –
Is the party designated to receive the shipment. Again, depending on what you’re
shipping this could be your company, or a manufacturer who uses parts you’re shipping.
The Bill of Lading is only issued after vessel departure from the Port of Loading and the
customer has provided us with all the details, such as the shipper, consignee, notify party,
commodity, weight, cargo description, etc. It also serves as a receipt, i.e., an
acknowledgement that the goods have been loaded (not where the cargo is) and contains or
evidences the terms of the contract of carriage.
73
Hague Rules
Hague Rules, in maritime law,
international code defining the rights and
liabilities of a carrier
. Introduced at the International Law Association
meeting in Brussels in 1921, they were adopted first as clauses in bills of
lading and after 1923 as the Brussels Convention on Limitation of Liability.
•
The Hague Rules represented the first attempt by the international
community to find a workable and uniform way to address the problem of
shipowners regularly excluding themselves from all liability for loss or
damage to cargo. The objective of the Hague Rules was to establish a
minimum mandatory liability of carriers.
•
Under the Hague Rules the shipper bears the cost of lost/damaged goods if
they cannot prove that the vessel was unseaworthy, improperly manned or
unable to safely transport and preserve the cargo, i.e. the carrier can avoid
liability for risks resulting from human errors provided they exercise due
diligence and their vessel is properly manned and seaworthy. These
provisions have frequently been the subject of discussion between
shipowners and cargo interests on whether they provide an appropriate
balance in liability.
74
Hague Rules
The Hague Rules form the basis of national legislation in
almost all of the world's major trading nations, and cover
nearly all the present international shipping. The Hague
Rules have been updated by two protocols, but neither of
the readdressed the basic liability provisions, which remain
unchanged.
The Hague Rules were slightly amended (beginning in 1931,
and further in 1977 and 1982) to become the Hague-Visby
Rules. In addition, the U.N. established a fairer and more
modern set of rules, the Hamburg Rules (effective 1992).
Also a more radical and extensive set of rules is
the Rotterdam Rules, but as of August 2020, only 5 states
have ratified these rules, so they are not yet in force
75
Visby Rules/ Hamburg Rules
The Hague and Hague/Visby Rules
apply to a contract of carriage
covered by a bill of lading or similar document of title, whether
or not a bill of lading was in fact issued
. This is particularly so
because the bill of lading is not necessarily the contract of carriage
but usually the best evidence of it.
The
Hamburg Rules
are a set of rules governing the international
shipment of goods, resulting from the United Nations International
Convention on the Carriage of Goods by Sea adopted
in Hamburg on 31 March 1978. The Convention was an attempt to
form a uniform legal base for the transportation of goods on
oceangoing ships. A driving force behind the convention was the
attempt by developing countries' to provide all participants a fair and
equal chance of succeeding. It came into force on 1 November
1992.
[
76
Voyage by Sea- INCOTERMS-
meaning, explanation, list, and types.
Voluntary Export Restriction - An understanding between trading partners in which the
exporting nation, in order to reduce trade friction, agrees to limit its exports of a
particular good. Also called voluntary restraint agreement. Voluntary Restraint
Agreement - Informal bilateral or multilateral understandings in which exporters
voluntarily limit exports of certain products to a particular country destination in
order to avoid economic dislocation in the importing country and the imposition of
mandatory import restrictions. These arrangements do not involve an obligation on
the part of the importing country to provide "compensation" to the exporting
country, as would be the case if the importing country unilaterally imposed
equivalent restraints on imports. See: Voluntary Export Restriction.
Voluntary Restraint Agreements (VRAs) - Generally, a bilateral arrangement whereby
an exporting country agrees to reduce or restrict exports without the importing
country having to make use of quotas, tariffs or other import controls. These
agreements are generally undertaken to avoid action by the importing country
against imports that may major or in some way threaten the positions of domestic
firms in the industry in question.
77
Voyage by Sea- INCOTERMS-
meaning, explanation, list, and types.
VO-MTO - Vessel-operating multimodal transport operator
Voyage Charter: A charter party hiring a vessel for a particular voyage in
which the ship-owner provides the vessel, bunkers and crew whilst the
charterer supplies the cargoes.
Voyage Direction: The sector of a round trip voyage normally denoted by
the direction of the sailing.
Voyage Estimate - Calculation of the profitability of a prospective
voyage of a ship using estimated figures. In the case of a tramp ship-
owner, the estimate is used to compare two or more possible voyage
in order to determine which is the most profitable. Similarly, a time
charterer would compare two or more ships so as to charter the one
that is least costly overall.
78
Voyage by Sea- INCOTERMS-
meaning, explanation, list, and types.
The content of an estimate vanes according to the type and terms of the
charter and whether a ship-owner or charterer is making the
calculation. For an owner, the principal costs are running cost of the
ship (or hire money for a time charterer), bunker costs, port charges
and canal dues together with ship's agency fee and any cargo
handling costs; the revenue is the daily hire, in the ease of a time
charter, or the freight, less any commission in the case of a voyage
charter.
Voyage: Refers to the passage in time and space from first to last port
of call. In the Foreign-Going Trade, a Crew Agreement is defined as
chronicling one voyage. In practice, one voyage could be made up
of multiple smaller voyages, which could include the signing off of
some crew and the engagement of substitutes, and a much-changed
composition of crew before the last port of call. Six month
“running” crew agreements for the Home Trade allowed masters to
hire crew for any voyage over a six-month period in one document.
79
Voyage by Sea- INCOTERMS-
meaning, explanation, list, and types.
VRA - Voluntary Restraint Agreement
W.A. - With Average
W.B. - Water ballast, Warehouse Book, Way Bill
W.B./E.I. - West Britain/East Ireland
W.B.S. - Without benefit of salvage
W.C. - West Coast
W.C.I. - World Confederation of Labor
W.C.S.A. - West coast of South America
W.D.F. - Wireless direction finder
W.E.C.M. - Warranted existing class maintained
W.E.U. - Western European Union
W.F.T.U. - World Federation of Trade Unions
W.G. - Weight guaranteed
W.H.O. - World Health Organization
80
Voyage by Sea- INCOTERMS-
meaning, explanation, list, and types.
W.M. (W/M):Abbreviation for "Weight or Measurement;" the basis for assessing
freight charges. Also known as "worm." The rate charged under W/M will be
whichever produces the highest revenue between the weight of the shipment and
the measure of the shipment.
W.M.O. - World Meteorological Organization
W.N.A. - Winter North Atlantic
W.O.B. - Washed overboard
W.O.L. - Wharfowners' liability
W.P. - Without prejudice, Weather permitting
W.P.A. - With particular average
W.P.P. - Waterproof paper packing
W.R. - Warehouse receipts
W.R.O. - War risk only
W.R.T.D. - Without reference to date
W.T.B.A. - Wording to be agreed
81
Voyage by Sea- INCOTERMS-
meaning, explanation, list, and types.
W.T.L.:Western Truck Lines.
W.W.D. - Weather working days
W/D– Warranted
W/M - Weight and /or Measurement
W/W - Warehouse warrant
WACH - West African Clearing House
WADB - West African Development Bank
WAEC - West African Economic Community
WAMU - West African Monetary Union
WAOB - World Agricultural Outlook Board
War Clause - Clause in a Bill of Lading or Charter-Party which sets out the course of
action open to the master of a ship in the event that the ship or her cargo or crew
would be put at risk because of war should the voyage proceed. The clause varies
according to individual contracts but invariably the master would not be required to
put his ship or crew at risk.
82
Voyage by Sea- INCOTERMS-
meaning, explanation, list, and types.
WAR RISK INSURANCE: Insurance issued by marine underwriters against war-like
operations specifically described in the policy. In former times, war risk insurance
was taken out only in times of war, but currently many exporters cover most of their
shipments with war risk insurance as a protection against losses from derelict
torpedoes and floating mines placed during former wars, and also as a safeguard
against unforeseen warlike developments. In the U.S.A., war risk insurance is
written in a separate policy from the ordinary marine insurance; it is desirable to
take out both policies with the same underwriter in order to avoid the ill effects of a
possible dispute between underwriters as to the cause (marine peril or war peril) of a
given loss.
WAR RISK: The possible aggressive actions against a ship and its cargo by a
belligerent government. This risk can be insured by a marine policy with a risk
clause.
War/Strike Clause: An insurance provision that covers loss due to war and/or strike.
WARC - World Administrative Radio Conference
WARDA - West Africa Rice Development Association
83
ASSIGNMENT
Q.1. Discuss Multi modal transportation Act &
Procedures
Q.2. Explain INCOTERMS.
84
MODULE IV
MMT and Indian Railways-PFT Policy-
maintenance of rolling stock, cargo handling,
customs, etc. Warehousing Policy- stuffing,
destuffing, stacking, use of MHE, etc-Layout
and design of Multi modal logistics parks.
85
MMT and Indian Railways-PFT
Multimodal transport refers to the transport of good from one point to another via more than one mode of
transport. Multimodal Logistics can be viewed as “the chain that interconnects different links or modes
of transport – air, sea, and land into one complete process that ensures an efficient and cost-effective
doorto-door movement of goods under the responsibility of a single transport operator, known as a
Multimodal Transport Operator (MTO), on one transport document”. The Multimodal transport act was
passed by Indian Parliament in the year 1993; the main objective of the act was to establish a liability
regime for Multimodal Transport operators. The Director General of Shipping was notified as a
Competent Authority under the aegis of this law. The passing of the MMTG Act paved the way for
various Indian Logistic Service providers to get themselves registered with the authorities and start
issuing Multi Modal Transport Document. This helped the shipper community in India in a big way as
now they could ship goods from any land point India to any destination in the world under a single
Contract of Carriage. The manufacturing hubs in India are located deep in the hinterland and faraway
from the gateway ports. The major manufacturing hubs are located in Punjab, Haryana, Uttar Pradesh and
National Capital Region and they contribute a major part of exports. The states of Gujarat, Maharashtra
and Tamil Nadu sum up the remaining part. Thus, the potential for multimodal transportation (including
long and short hauls) is immense. Containerizations of goods is fast increasing and many new
manufacturers and products are planning to use it. Being a convenient way to transport goods over long
distances, containerization will further boost the potential for multimodal transportation.
86
MMT and Indian Railways-PFT
India’s international trade (both exports and imports combined) is growing at a brisk pace of 10 to 12 per
cent. Industry experts predict that this trend is expected to continue in the near future and may achieve 20
million TEU per year by the year 2020. Indian Railways had opened the container transportation to
private players in 2006 with the intention of bringing in more cargo to rail from road. Once the private
rail operators stabilise themselves from the uncertainties in the formative years, more and more container
cargo is expected to shift from road to rail, thus increasing the scope for multimodal transportation.
Besides, the prestigious dedicated freight corridor project undertaken by the Ministry of Railways is
expected to commence operations by 2015 and once this is through, share of rail transportation is
expected to catapult further.Advantages of Multimodal Transportation The economic growth in India has
increased the demand for practically all transport services and further underlines the importance of
providing an efficient multimodal logistics infrastructure in India. MMLPs can help in saving of cost in
transportation. In other words these services help in the reduction of costs which are incurred in the
transportation of goods. This is possible because of use of right modal choice for the movement.
Learning from the worldwide state of the art practices would help in reducing costs, increase the overall
efficiency within the system and reduce the environmental impacts of logistics. Association of
Multimodal Transporters of India (AMTOI) says that the biggest advantage for a shipper in using a
multimodal transport operator is that they get a single document for their shipments. “This means a
single responsibility and uniform liability regime
87
MMT and Indian Railways-PFT
”. i) Minimizes time loss at trans-shipment points: Multimodal transport, 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 trans-
shipment points. The multimodal transport operator maintains his own communication links and
coordinates interchange and onward carriage smoothly at trans-shipment points. This avoids
documentation and verification time from one agency to other. Also advance planning can be done by
MTO because knowing status from initial stages.
ii) Provides faster transit of goods: The faster transit of goods made possible under multimodal transport
reduces the disadvantages of distance from markets and tying-up of capital. In an era of Globalization the
distance between origin or source of materials and consumer is increasing thanks to the development of
multimodal transport.
iii) Reduces burden of documentation and formalities: The burden of issuing multiple documentation and
other formalities connected with each segmented of the transport chain is reduced to a minimum.
iv) Save cost: The savings in costs 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. As savings are
passed onto the consumer, demand increases. The inherent advantages of multimodal transport system
will help to reduce the cost of exports and improve their competitive.
v) Single window operation: The consignor has to deal with only the multimodal transport operator in all
matters relating to the transportation of his goods, including the settlement of claims for loss of goods, or
damage to them or delays in delivery at destination.
88
Maintenance of Rolling Stock
Duties of Shop Superintendent/Chief Traction Foreman (Maintenance)
He being supervisor in charge of the loco shed directly under the control of DEE / AEE (RS),
as the case may be, will be responsible for the maintenance of locos. His chief duties are:
1.
To guide and instruct supervisors and men under him in the correct methods and schedules
laid down .for maintenance and repairs.
2.
To keep a close watch on maintenance so as to reduce the unscheduled withdrawal of locos to
the minimum and to watch the performance of equipment involved in frequent troubles.
3.
To Initiate appropriate steps for recommissioning locos out of service.
4.
Execution of various approved modifications and to maintain locos and the loco shed in a
clean condition.
5.
To keep a. watch on the availability of stores for maintenance and modifications and to
initiate appropriate steps for timely recoupment.
6.
To ensure efficient maintenance of the shed plant and machinery and ancillary services.
7.
To coordinate with TLC and TF(R) regarding withdrawal of locos for shed attention, POH
and nomination of relief locos from shed.
8.
To coordinate with the Training School regarding relief of staff for training and refresher
courses.
9.
He will be the stock holder of all equipments on locos, assemblies and sub assemblies and
unit exchange spares.
89
Duties of Electrical Foreman
(Planning and Progress Office)
1.
To maintain liaison with the operating wing and ensure timely availability of locos from the
shed.
2.
To plan the scheduled and unscheduled repairs of locos to the shed as required, keeping in
view the shed capacity and proper utilization of inspection, lifting and heavy repair berths.
3.
To issue job cards and to coordinate the working of the sections so as to ensure timely turn-
out of the locos after attention / repair.
4.
To maintain necessary documents to enable scheduled attention to various locos and for
revision of maintenance practices and instructions.
5.
To keep a watch on tests and trials and performance of modified equipment and
maintenance of requisite records in this connection.
6.
To maintain the History Register, Equipment Cards, Modification Charts and other
prescribed records.
7.
To coordinate with the workshops regarding release of locos for POH and special shop
repairs and to arrange for dispatch of requisite information and records to shops.
8.
To maintain statistics of engine-kilometres, failure records etc.
9.
To keep a record of wheel wear and to programme for tyre-turning.
10.
Furnishing shed statistics to HQ office.
90
Duties of Section Supervisors
Each of the sections mentioned in 30200 will be under a supervisor of appropriate rank
who will be directly responsible for the following:
1. He will scrutinize the job card for the loco received for inspection/unscheduled
repairs, carefully study the work to be carried out and based on his personal
inspection, list out additional items of work, if any.
2.
He will allot the work to the staff under him with special instructions, if any.
3.
He will ensure that the work is carried out within the time allotted and the loco
released in time.
4.
The supervisor will maintain a record of work done by staff with the purpose of
taking corrective action in the event of reported malfunctioning of the equipment
immediately after overhaul/repair
5.
He is responsible for drawing, distributing and recording of all stores required by
his section, as well as any tools and testing instruments.
6.
Before returning the job card in token of having completed the work, he will
satisfy himself that all work has been done satisfactorily. To ensure this he will
make frequent checks while the work is in progress.
7.
He will ensure necessary co-ordination with other sections as well as with PPO.
91
Cargo Handling
Cargo handling costs include the costs arising from both loading and unloading cargo
together with any claims that may arise relating to the cargo. Cargo handling costs
are excluded from voyage charter costs but have to be met in owner operation.
Cargo handling time can be reduced and with it the costs of this operation, by the
provision of good cargo handling features such as:
1.large hatches giving good access;
2.shipside doors where appropriate;
3.
hatch covers
which can be speedily opened and closed;
4.fork lift trucks to speed stowage;
5.cargo handling cranes or derricks on the ship with a lift capacity optimized to the
cargo carried and a speedy cycle time;
6.in appropriate cases by providing the ships with self discharging facilities. Where the
trade is based on a small number of specific ports there is the alternative of
minimizing the ship cost and using shoreside cargo handling facilities.
Containerization or palletization of the cargo can make a step change in cargo
handling time and cost.
92
Customs
•
Customs
is an authority or agency in a country responsible for
collecting tariffs and for controlling the flow of goods, including
animals, transports, personal effects, and hazardous items, into and
out of a country.
Traditionally, customs has been considered as the
fiscal subject that charges customs duties (i.e. tariffs) and other
taxes on import and export. In recent decades, the views on the
functions of customs have considerably expanded and now covers
three basic issues:
taxation
, security, and trade facilitation.
•
Each country has its own laws and regulations for the import and
export of goods into and out of a country, enforced by their
respective customs authorities; the import/export of some goods
may be restricted or forbidden entirely. A wide range of penalties
are faced by those who break these laws.
93
Warehousing Policy
Warehousing:
Warehousing can be defined as the systematic
process of storing
and
preserving goods on a
large scale
in a warehouse and making them available when they are demanded, i.e. for sale, distribution
and consumption. The
e-commerce sector
has been driving the demand for logistics and warehousing
across global markets. It has emerged as the most prominent driver of Indian warehousing market volumes,
along with the
third party logistics sector
.
New Warehouse Policy:
Aim:
The Policy aims to reduce logistic cost and ease transportation by developing exclusive warehousing
zones in public-private partnership(PPP) model.
The policy will be framed and implemented by the
National Highways Authority of India (NHAI)
.
The warehouses will be located outside city centres, especially around the land available with NHAI along
highways and expressways.
These warehouses will house cold-storage chains and will be able to store all kinds of cargo—wet and dry.
Moreover, since warehouses are expected to come up outside city centres,
large trucks carrying the cargo will
not need to enter the city
to unload their goods. This will also help
boost bulk carrying
capacity
and
save fuel
. These large vehicles can also transport more goods compared to the smaller trucks.
What will be the impact of this policy on logistics cost?
Warehousing zones will help
cut India’s logistics cost
which is 14%-16% of gross domestic product (GDP)
compared to 8%-10% of GDP in China and 12%-13% in the US.
Moreover, the Government of India is also developing 35
Multi-Modal Logistics Parks (MMLPs)
to improve
the country’s freight logistics sector. This will help aid the proposed warehousing policy
94
Stuffing, Destuffing, Stacking, use of
MHE
Stuffing is the loading of goods into a container while destuffing is the
opposite of stuffing. It is the unloading of goods from a container.
About 85% of the 17 trillion USD worth of goods traded the world over in
2020 were transported in multimodal containers. The words ‘stuffing’ or
‘destuffing’ is mostly used when it comes to shipping containers.
However, they are also used when goods are loaded or unloaded from other
modes of transport such as open trucks or large crates used to pack and
transport goods.
Several factors are to be considered while stuffing or destuffing cargo. Here
we have taken shipping cargo by sea, as the context. Let us take a look at
stuffing first.
Every warehouse will have a daily plan for stuffing that is normally prepared
by the warehouse operational staff. Stuffing of a container will usually
coincide with the stack dates announced by the port for a particular vessel
that the container is supposed to take
95
Material handling
equipment
(
MHE
)
MHE is mechanical equipment used for the
movement, storage, control, and protection of
materials, goods and products throughout the
process of manufacturing, distribution,
consumption, and disposal. The different types
of equipment can be classified into four major
categories:
transport equipment, positioning
equipment, unit load formation equipment, and
storage equipment.
96
Layout and design of Multi modal
logistics parks
Multi-Modal Logistics Parks (MMLPs)
is a key policy initiative of the Government of India, led by National
Highways Logistics Management Limited under Ministry of Road Transport and Highways (MoRTH) and
the National Highways Authority of India (NHAI), to develop Multi-Modal Logistics Parks in hub-and-
spoke model to improve the country's freight logistics sector by lowering overall freight costs and time,
cutting warehousing costs, reducing vehicular pollution and congestion, improving the tracking and
traceability of consignments through infrastructural, procedural, and information technology interventions.
Since, in 2017, India had comparatively high logistics costs, 13% of total price of goods compared with 8%
in other major economies and average 72% higher cost than China of exporting/importing a container in
India.
To make India globally competitive by reducing these costs and time, the MoRTH is developing
multi-modal logistics parks at selected locations in the country under its Logistics Efficiency Enhancement
Program (LEEP).
MMLP is officially defined as a freight-handling facility with a minimum area of 100 acres (40.5 hectares), with
various modes of transport access, mechanized warehouses, specialized storage solutions such as cold
storage, facilities for mechanized material handling and inter-modal transfer container terminals, and bulk
and break-bulk cargo terminals. Logistics parks will also provide value-added services such as customs
clearance with bonded storage yards, quarantine zones, testing facilities, and warehousing management
services. Provisions will also be made for late-stage manufacturing activities such as kitting and final
assembly, grading, sorting, labelling and packaging activities, re-working, and returns management. As of
July 2021, 35 MMLPs has been identified by MoRTH. Among those Bangalore, Chennai, Guwahati and
Nagpur are under implementation, and the rest are in pre-planning and DPR is yet to be prepared.
97
Layout and design of Multi modal
logistics parks
Expansion of logistics sector with India's economic growth
Keeping pace with India's rapid economic growth is the expansion of the country's logistics sector.
The movement of freight in the country nearly doubled to around 2,300 billion ton-kilometers
in fiscal year 2015 from 1,200 billion ton-kilometres in the fiscal year 2008.The government
expects freight movement in the country to continue its growth trajectory, with expected
annual growth of 8%–10% over the next 10 years. The logistics sector as a whole, according
to a study commissioned by MoRTH, is poised to expand at roughly 1.2 times the rate of
India's gross domestic product growth through 2032, by which time it is expected to generate
$360 billion in value-added, up from $115 billion in 2017.
In 2016, India managed to improve its performance in the Logistics Performance Index (LPI), a
ranking published by the World Bank to measure the logistics performance of countries.
India's LPI ranking rose to 35th in 2016, up from 46th in 2012. India's ranking, however, still
lags behind some of its economic peers, including other Asian countries. The best logistics
performer in Asia is Singapore, which was ranked 5th in 2016, followed by Hong Kong,
China (9th); Japan (12th); the Republic of Korea (24th); and the People's Republic of China
(PRC) (27th). Among the grouping of so-called BRICS—comprising Brazil, Russia, India, the
PRC, and South Africa—aside from the PRC, South Africa also outperformed India in 2016
with a ranking of 20th (World Bank, 2016).
Government's MMLP initiative
98
India's Logistics Performance Index
score
Drivers and challenges for logistics sector development in India
Logistics costs are high in India relative to costs in developed countries, which were
13% of GDP in 2015 compared to approximately 8%–10% in developed nations.
India's road freight cost per ton-kilometer, adjusted for purchasing power parity, is
₹1.90 ($0.03), which is almost double that of the United States. These higher
logistics costs in India are primarily driven by the following five key factors.
Unfavorable inter-modal mix: 60% of freight movement skewed toward road transport
despite the lower freight cost of rail transport.
Inefficient fleet mix: Characterized by smaller, inefficient trucks.
Underdeveloped material handling infrastructure: A fragmented industry consisting
largely of small, unorganized warehouses with limited mechanization.
Underdeveloped road infrastructure: Limited presence of 4 and 6 lane national
highways.
Institutional and regulatory bottlenecks: Such as complicated documentation and
procedures related to toll collections, adversely impact logistics costs in India.
99
ASSIGNMENT
Q.1. What is MMT?
Q.2. Discuss about Indian Railways.
Q.3. Write short note on
a). PFT Policy
b). maintenance of rolling stock cargo handling
c). Layout and design of Multi modal logistics
parks.
100
MODULE V
Multi modal transport & Practice Today- India’s
growing conflict between Trade & Transport-
issues, policy, problems & pricing-integrated
Transport-Bharatmala, Sagarmala, IWT, DFC,
the concept of ICP (International Check posts-
Scenario in India and neighboring countries
with a case study.
101
Multi modal transport & Practice
Today
Transportation activity has boomed over the past few years due to trade globalization,
which, from an economic point of view, is good news. But with the rising ebb and
flow of people and goods, Supply Chain players are being forced to rethink their
business strategy to adjust to demand and comply with regulatory standards. In light
of these observations, multimodal transportation stands out as a wise solution to
meet consumer needs and tackle important road saturation issues. And with new
methods shaking things up internationally and inspiring innovation in transportation
and logistics, things couldn’t be better!International transportation faces new
challenges Today, international Supply Chains are bound by a myriad of factors that
call for consideration when offering the best transportation solutions. But exactly
which criteria need to be met in order to satisfy consumer demand on a global
level? New consumer trends Consumer habits are as diverse as countries and
residential areas are varied. Additionally, customer expectations regarding in-store
shopping are changing, and demand in delivery services is on the rise. Evolving
consumption patterns are obvious culprits behind the new challenges faced by
logistics services. One size no longer fits allContrary to what we’ve grown used to
thinking, globalization can no longer be confused with standardization. One size
does not fit all.
102
Multi modal transport & Practice
Today
And it would in fact be dangerous to evade the certainty that consumer habits
vary widely from one country to another. Companies involved in
international trade—export specifically—must be able to closely address
local demand, and tailoring supply is the new key to conquering the global
market. The impact of culture on customer profiles. To succeed in the
international arena, brands will need to take culture-driven consumption
patterns, in essence regional specificities, into consideration when
developing trade strategy.E-commerce shares similar characteristics in
Europe and in the US. But in other countries, the trend takes on completely
different forms, particularly in the service sector. For example, companies
in China are tackling demand from two categories of consumers: urbanites
seeking quality and services, and rural citizens interested in bulk-buying
cheap products. On the very promising African market, professionals are
placing high hopes on banking services and infrastructure to catch up on
missed opportunities. The Middle East and North Africa stand strategically
at a crossroads of international routes, with ongoing social and political
change in Libya, Syria and Yemen as an encouraging sign of good
prospects
103
India’s growing conflict between
Trade & Transport
(I) India has been a rather marginal participant In world trade durIng the early years after
independence. The need to consolidate alarge and populous economy, to achieve self-
sufficiency, and Import substitution policies account for much of the reasons for the country's
inward-looking orientation of the past. Until recently, Indian economic policy has not treated
exports as a prlority but in the last few years there has been a growing awareness of the
importance of export performance, as the limits of efficient import substitution were reached.
The oil shocks created severe adjustment pressures for the balance of payments, and the
benefits of having foreign exchange to finance morerapid Importation of high technology
capital goods In scarce supply have become more recognized.(ii) Since 1980, the structure
and orientation of Indian export trades have undergone fundamental changes. Substantlal
progress was made In diversifying the export base -manufactured goods have increased and
the traditional bulk sector has shrunk. Key targets for the export of manufactured goods are
the European, Japanese and North American markets. These markets are characterized by
Increasingly efficient trade logistics arrangements -a trend that was spurred by the shippers'
drive to reduceInventory costs, and by the International carriers who initiated significant
service restructuring In order to better meet the shippers' more and more sophisticated
logistics requirements.
104
India’s growing conflict between
Trade & Transport
Containerization and multi-modal transport arrangements were central to these developments.(iil)
To enable further trade growth, India Is now confronted with a need to tie into the highly
organized international trade logistics networks. But the country was totally unprepared to
cope with the demanding logistics arrangements, common among Its major trade partners.
National planners considered containerization as a state-of-the art development which would
happen only very slowly in Indla, and lIttle action was taken to prepare the national economy
for the events that finally have affected Indian trade In a major way. As a result, there is a real
danger that India's trade performance will deteriorate, If no corrective measures are taken. -2-
(Iv) A highly fragmented service Industry, outdated regulations, heavy Government control, a
constrained private sector, and largely Inadequate Infrastructure have curtailed efforts to
Improve trade logistics arrangements in India. Major reforms are called for so that aneffective
framework for initiating urgently required system adjustments can be estabflshed. In
particular the pubilc corporations, mandated to provide logistics services, have to be
substantially reorganized, and the Government's protective umbrella has to be lifted so that
these corporations can become more market responsive In competition wlth the private
service Industries. The role and participation of the private sector should be substantially
enhanced because the few successful service Innovations In India were brought about by
private companies.
105
India’s growing conflict between
Trade & Transport
v) There are plans to Invest about US$ 3 billion each year over the next decade In trade logistics
facilities. However, In the absence of a national strategy for efficient organization of trade
logistics In India, proposed investments In the service sector often bear little relation to
system Improvement needs. This fact Is compounded by common situations in which existing
facilities are not utilized to their full capacity potential because of Ineffectual management
and cumbersome control procedures. The country needs a harmonized national trade logistics
management and development strategy, and its formulation should be given highest priority .
Under such strategy, each segment of the logistics system should be assigned a proper role
and function -based on considerations of cost-effectiveness and market response.(vI) Very
importantly, the entire setup of the public administration for managing the national trade
logistics system has to be reassessed. The present organizational arrangements are excessive
which undermines efforts to improve the system's responsiveness to changing trade and
transport market environments. It will be vital to Include the private sector In these
deliberations. Possibly the most cumbersome task will be the absolute need to revise the
regulatory framework that governs the conduct of trade logistics services. Going by the
experience with similar efforts In other countries, It should be recognized that Instituting the
required system adjustments will be a major task for which unequivocal Government
commitment is a basic prerequisite. Invariably, the process will spread over several years -but
it is Important to get it started
106
Bharatmala
The Bharatmala Pariyojna (lit. 'India garland project') is an ecosystem of road development which
includes development of tunnels, bridges, elevated corridors, flyovers, overpass, interchanges,
bypasses, ring roads etc. to provide shortest, jam free & optimized connectivity to multiple
places, it is a centrally-sponsored and funded Road and Highways project of the Government
of India.[1] Bharatmala is mainly focused on connecting remote areas and satellite cities of
megacities such as Bengaluru, Pune, Hyderabad etc. The total investment for 83,677 km
(51,994 mi)[2] committed new highways is estimated at ₹10.63 lakh crore (US$130 billion),
making it the single largest outlay for a government road construction scheme (as of March
2022). The project will build highways from Maharashtra, Gujarat, Rajasthan, Punjab,
Haryana and then cover the entire string of Himalayan territories - Jammu and Kashmir,
Himachal Pradesh, Uttarakhand - and then portions of borders of Uttar Pradesh and Bihar
alongside Terai, and move to West Bengal, Sikkim, Assam, Arunachal Pradesh, and right up to
the Indo-Myanmar border in Manipur and Mizoram.[1] Special emphasis will be given on
providing connectivity to far-flung border and rural areas including the tribal and backward
areas. Bharatmala Project will interconnect 550 District Headquarters (from current 300)
through a minimum 4-lane highway by raising the number of corridors to 50 (from current 6)
and move 80% freight traffic (40% currently) to National Highways by interconnecting 24
logistics parks, 66 inter-corridors (IC) of total 8,000 km (5,000 mi), 116 feeder routes (FR) of
total 7,500 km (4,700 mi) and 7 north east Multi-Modal waterway ports
107
Sagarmala
The Programme (transl. Garland of the sea) is an initiative by the Government of India to enhance
the performance of the country's logistics sector. The programme envisages unlocking the
potential of waterways and the coastline to minimize infrastructural investments required to
meet these targets.[1][2]Sagarmala Project Sagarmal logo.jpg MottoPort-led prosperity
CountryIndiaPrime Minister(s)Narendra Modi MinistryMinistry of Ports, Shipping and
Waterways Key people Bhushan Kumar, Joint SecretaryEstablished31 July 2015; 7 years ago
StatusActiveWebsitewww.sagarmala.gov.inIt entails investing ₹8.5 trillion (equivalent to ₹9.7
trillion, US$120 billion or €120 billion in 2020) (2018) to set up new mega ports,
modernizing India's existing ports, developing of 14 Coastal Economic Zones (CEZs) and
Coastal Economic Units, enhancing port connectivity via road, rail, multi-modal logistics
parks, pipelines & waterways and promoting coastal community development, with the aim of
boosting merchandise exports by US$110 billion and generating around 10 million direct and
indirect jobs.The Sagarmala Programme is the flagship programme of the Ministry of Ports,
Shipping and Waterways to promote port-led development in the country by exploiting India's
7,517 km long coastline, 14,500 km of potentially navigable waterways and its strategic
location on key international maritime trade routes. Sagarmala aims to modernize India's
Ports, so that port-led development can be augmented and coastlines can be developed to
contribute to India's growth. It also aims at "transforming the existing Ports into modern
world-class Ports and integrate the development of the Ports, the Industrial clusters and
hinterland and efficient evacuation systems through road, rail, inland and coastal waterways
resulting in Ports becoming the drivers of economic activity in coastal areas
108
Assam Inland Water Transport
Assam Inland Water Transport was established in the year 1958. The department of
Transport, Govt of Assam is the Administrative department of Inland Water
Transport, Assam. The Directorate of Inland Water Transport, Assam was initially
setup with a skeleton staff headed by a Director with its Head Quarter at Shillong.
The tiny department started its services with a few nos. of ferry Ghats taken over
from PWD.The department had worked hard to serve the people of Assam and its
adjoining neighbouring states. In October, 1963 the Directorate of Inland Water
Transport was shifted to Guwahati. This was slowly expanded to a fully fledged
Directorate under the Transport Department, Govt. of Assam at Guwahati. As a first
major steps toward its expansion activity, 6 (six ) nos. of ferry services operating in
the river Brahmaputra were taken over from the State PWD Department in 1968 .
Since then, the Directorate of Inland Water Transport has never looked back. The
wooden country boats which were plying in the services were gradually withdrawn
and were replaced with power vessels. VisionThe Inland Water Transport
Department is committed to ensure safe journey to the ferry commuters across the
state and cargo transportation through inland waterways on the River Brahmaputra
(National Waterways-2), River Barak (National Waterways-16) and other navigable
tributaries within Assam.
109
Dedicated Freight Corridor
Corporation of India Limited
(DFCCIL)
The Dedicated Freight Corridor Corporation of India Limited (DFCCIL) is a
public sector undertaking which undertakes planning, development, and
mobilization of financial resources and construction, maintenance and
operation of the "Dedicated Freight Corridors" (DFC). The DFCCIL was
registered as a company under the Companies Act 1956 in 2006.[2] First 2
DFCs, Western Dedicated Freight Corridor (WDFC), from Dadri in Uttar
Pradesh to JNPT in Mumbai and Eastern Dedicated Freight Corridor
(EDFC), Ludhiana in Punjab to Dankuni in West Bengal, which will
decongest railway network by moving 70% of India's goods train to these
two corridors, are both on track for completion by June 2022. 99% required
land for these two have been acquired, and 56% of WDFC and 60% of
EDFC is complete as of July 2020.[3] There are new DFC
approved/proposed in the national budget by Government of India such as
East-West Dedicated Freight Corridor, North-South Dedicated Freight
Corridor, East Coast Dedicated Freight Corridor and Southern Dedicated
Freight Corridor.
110
Setting up Integrated Check Posts
(ICPs)
Setting up Integrated Check Posts (ICPs) at Sunauli and Rupaidiha in Uttar
Pradesh (Nepal Border) and Sutarkandi in Assam (Bangladesh Border) has
been approved. Further, “in principle” approval has been granted for the
setting up Integrated Check Posts (ICPs) at 10 other location viz;
(i)
Ghojadanga, West Bengal (Bangladesh border)
(ii)
Changrabandha, West Bengal (Bangladesh border)
(iii)
Fulbari, West Bengal (Bangladesh border)
(iv)
Jaigaon, West Bengal (Bhutan border)
(v)
Panitanki, West Bengal, (Nepal border)
(vi)
Mahadipur, West Bengal (Bangladesh border)
(vii)
Hili, West Bengal (Bangladesh border)
(viii)
Banbasa, Uttarakhand (Nepal border)
(ix)
Bhitamore, Bihar (Nepal border)
(x)
Kawrpuichhuah, Mizoram (Bangladesh border).
111
Setting up Integrated Check Posts
(ICPs)
The current status and details of the Integrated Check Posts (ICPs) along the
border areas, State / UT wise are given below: S. No.ICP Location State
Borders with Current Status
1Attari (Amritsar)Punjab Pakistan Operational
2AgartalaTripuraBangladesh
3PetrapoleWest Bengal Bangladesh
4RaxaulBiharNepal
5JogbaniBiharNepal
6MorehManipurMyanmar
7DawkiMeghalayaBangladeshunder construction
8RupaidihaUttar Pradesh (U.P.)Nepal Approved in December, 2018.
9SunauliUttar Pradesh (U.P.)Nepal
10SutarkandiAssamBangladesh
This was stated by the Minister of State for Home Affairs Shri Kiren Rijiju in a
written reply to question in the Rajya Sabha today.
112
Setting up Integrated Check Posts
(ICPs)
India’s integrated check posts are boosting regional connectivity
but challenges remain CSEP think tank researcher looked at
India's increasing trade and passenger movement with Nepal,
Pakistan, and Bangladesh to find why Delhi is pushing for
border infrastructure development. Avatar RIYA SINHA 29
July, 2021The Petrapole integrated check post between India
and Bangladesh | Representative image. The Petrapole
integrated check post between India and Bangladesh | Photo:
Madhuparna Das | ThePrint Efficient connectivity
infrastructure is a prerequisite for regional economic
integration.
113
Setting up Integrated Check Posts
(ICPs)
A 2018 World Bank study led by Sanjay Kathuria posits that trade between
South Asian countries could be close to $67 billion, three times more than
the actual figure of $23 billion. Various structural impediments, tariff and
non-tariff barriers have limited the trade potential in the region, and in turn,
affected regional integration. Following economic liberalization in the
twentieth century, countries in South Asia have prioritized trade with
distant European and Southeast Asian countries but have effectively
maintained a closed border within the neighborhood. For instance, it takes
approximately two days for a container to be shipped from Kolkata port to
Singapore (approximately 3,700 km), whereas it takes about the same
amount of time for a truck at Petra pole Integrated Check Post (ICP) in
West Bengal to cross the land border into neighboring Bangladesh.
114
Setting up Integrated Check Posts
(ICPs)
Till the early 1960s, India, Nepal, and formerly East Pakistan (Bangladesh) were well connected
through the waterways of Ganga and Brahmaputra rivers, and a large number of active rail
services. Regional air connectivity in South Asia has also decreased significantly, with no
flights between Nepal and Pakistan, or between smaller cities such as Port Blair (India) and
Yangon (Myanmar).As a result of this poor state of connectivity, which affected the region for
decades, little attention had been given to improvements in border management infrastructure
till the 1990s.Evolution of India’s border management infrastructure The push for improving
land border management infrastructure began in India in 2000, in the aftermath of the Kargil
War (1999). This led to the institutionalization of border management through the
establishment of the Department of Border Management in January 2004 under the Ministry
of Home Affairs (MHA, 2004). During this time, a security-oriented approach to border
management was dominant, and discussions were held by a Group of Ministers (GoM) on the
setting-up of border management infrastructure to check illegal activities. At the India–Nepal
border, the GoM recommended setting up Immigration Check Posts (ImCPs) and Land
Customs Stations (LCSs) at all transit points linked to Kolkata Customs, in order to check the
illegal movement of people and goods; between India and Bangladesh, the GoM called for
‘renewed efforts’ to formalize cross-border trade and check smuggling; and for the India–
Myanmar border, it recommended the establishment of ‘a composite check post’ at Moreh
115
Setting up Integrated Check Posts
(ICPs)
It would comprise customs and immigration facilities and be manned by staff from the
federal Narcotics Control Bureau and the state police. I n the last decade, several
other factors have also led to further modernization of border management
infrastructure through the establishment of ICPs. First, the rising trade between
India and its neighboring countries, the increasing volume of literature on the
potential of economic corridors in the region, and the shifting focus among
governments on using the South Asian countries as transit corridors—have all
spurred further growth. For most Least Developed Countries (LDCs) in South Asia,
trade is at the heart of economic development. India is the market for approximately
70% and 90% of Nepal and Bhutan’s exports, respectively. Since the 2000s, India’s
trade with Nepal has increased from US$ 0.3 million in 2000–2001 to US$7.9
billion in 2019–20. Furthermore, approximately 75% of Nepal’s and 100% of
Bhutan’s global trade transits through India. These rising trade volumes necessitate
improvement in border trade infrastructure. Secondly, this is also driven by China’s
growing investments in infrastructure in South Asia. India has been taking steps to
correct decades of regional insularity with a focus on increasing connectivity with
its neighbors, both at the regional and bilateral level
116
Setting up Integrated Check Posts
(ICPs)
In this regard, the need to improve border management infrastructure was identified in the 2000s.
This approach further accelerated under the ‘Neighborhood First’ policy initiated in 2014,
wherein improving regional connectivity infrastructure became a policy priority. The
development of the ICPs in India and its immediate neighbors is one of the key focus areas to
improve connectivity. The ICPs in Northeast India are also important for the nation’s Act East
policy, which is an extension of its 1991 Look East policy and is focused on integrating the
Indian economy with the supply chains of Southeast Asia (MEA, 2021). Both policies have
also led to the setting-up of mechanisms for monitoring infrastructure projects with
neighboring countries. For instance, after Prime Minister Narendra Modi’s visit to Nepal in
2016, a Nepal-India Oversight Mechanism was put in place to oversee the implementation of
bilateral projects. Finally, improving cross-border trade infrastructure is also driven by India’s
international obligations. In April 2016, India ratified the World Trade Organizations' Trade
Facilitation Agreement (TFA). India has also formulated a National Trade Facilitation Action
Plan 2020–2023, to reduce the time it takes to release cargo from ports. The National
Committee on Trade Facilitation (NCTF, 2020) set the target for clearance of goods from an
LCS within 48 hours for imports and 24 hours for exports, by enabling paperless transactions
and infrastructure augmentation. Additionally, in 2017, India also ratified the Transports
Internationaux Routiers or International Road Transports (TIR) Convention. However, among
India’s neighbors', only Pakistan and Afghanistan are signatories to it.
117
ASSIGNMENT
Q.1. What is Multi modal transport & Practice
Today?
Q.2. Write short note on:-
a). Bharatmala,
b). Sagarmala,
c). IWT,
d). DFC,
e). The concept of ICP .
118
THANK YOU
119
Multimodal transportation involves using multiple modes of transportation for logistics and freight processes. It utilizes a combination of air, road, rail, water, and package carriers to efficiently move goods. Unlike intermodal shipping, multimodal shipping allows for flexibility in handling cargo based on the carrier involved, ensuring a seamless process for shippers. International multimodal transport contracts enable the carriage of goods across different countries through various modes of transportation under a single operator, streamlining the logistics chain.
Download Presentation
Please find below an Image/Link to download the presentation.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author. Download presentation by click this link. If you encounter any issues during the download, it is possible that the publisher has removed the file from their server.
E N D
Presentation Transcript
Multi-Modal Transportation L21C27C Dr. Akshita Sharma Asst. Prof. (MSMSR) MATS University, Pandri, Raipur (C.G.) Multi- Modal Transportation L21C27C 1
MODULE I Transportation Systems & Multi modal transport- Concept of Multi modal & Intermodal Transport-introduction to Multi modal transport, the difference between Multi modal and Intermodal transport- Type of transport Modes-detail and characteristics of air, road, rail, water, pipelines, package carriers- Need, Aim and Key Issues of Multi modal transport. 2 Multi- Modal Transportation L21C27C
Transportation Systems & Multi modal transport Multimodal transportation or multimodal shipping refers to logistics and freight processes that require multiple modes of transportation. For example, one shipment may involve rail carriers, air cargo freight, as well as a truck carrier. These are three modes of transport used in combination to complete a shipment. 3 Multi- Modal Transportation L21C27C
Transportation Systems & Multi modal transport Multimodal transport is handled by a single carrier aka a multimodal transport operator or provider. The provider relies on a network of smaller carriers or contractors to do the job, but it's still a single-contract process for the shipper opting for multimodal transport. Unlike intermodal shipping, multimodal shipping allows for the cargo to be handled differently depending on the responsible carrier. E.g. the freight will be moved from a container to the pallets in a truck because of multimodal transport constraints. 4 Multi- Modal Transportation L21C27C
Concept of Multi Modal International multimodal transport means the carriage of goods by at least two different modes of transport on the basis of a multimodal transport contract from a place in one country at which the goods are taken in charge by the multimodal transport operator to a place designated for delivery situated in a different country . The operations of pick-up and delivery of goods carried out in the performance of a unimodal transport contract, as defined in such contract, shall not be considered as international multimodal transport. Multi- Modal Transportation L21C27C 5
Concept of Multimodal Transport Concept of Multimodal Transport in ASEAN and International Context: 1.International Transport 2.At least mode of transportation 3.One Operator 4.Single Transport Document and Contract of Carriage. 6 Multi- Modal Transportation L21C27C
Common understanding of difference between Intermodal and Multimodal Single transport document (multimodal contract) covering the whole carriage by several modes of transport Multimodal transport Goods remain in the same transport unit (container or road vehicles) during the entire carriage by several mode of transport Intermodal transport 7 Multi- Modal Transportation L21C27C
Advantage of Multimodal Transport 1. Reduce Complication of Liability of Intermodal Transport. 2. Dealing with one operator for contract of carriage. 3. Fix the limitation of liability of operator 4. One single contract of carriage for entire routes 5. Door-to-Door Deliverable 8 Multi- Modal Transportation L21C27C
Advantage of Multimodal Transport 6. National Wealth as Hub of Transit 7. Reduction in the costs and time for coordination and operation of logistics. 8. Increased monitoring of shipments from stage to stage. 9. There is only one company in charge of meeting the shipment deadline; therefore, there is better control on management and less risk of merchandise theft or loss while responsibility lies on just one entity. 10. Scheduling routes, costs, staff, and logistics becomes easier. 11. The FBL document has preference to enter and go through customs. 9 Multi- Modal Transportation L21C27C
Disadvantage of Multimodal Transport 1. The merchandise may encounter legal and operational limitations when international standards are applied. 2. For safety reasons, inspections in terminals are frequent, which limits 10 Multi- Modal Transportation L21C27C
What is Intermodal Transport? Intermodal Transport definition by OECD (Organisation for Economic Co-operation and Development) - Movement of goods (in one and the same loading unit or a vehicle) by successive modes of transport without handling of the goods themselves when changing modes. Intermodal Transport definition by ASEAN Training Material- The Carriage of Goods by MORE than TWO modes of transport without any handling of the freight when changing the modes through an intermodal transport chain with one single contract of carrier. In USA so called Containerized Rail Transport 11 Multi- Modal Transportation L21C27C
What is Intermodal Transport ? Intermodal Transport definition byEU Commission Intermodality1977- A characteristic of transport system that allows at least two different modes to be used in an integrated manner in a door-to-door chain . Intermodal Transport definition by European Conference of MTO (ECMT)2003 (same as OECD) The movement of goods in one and the same load unit or vehicle by successive modes of transport without handling of the goods 12 Multi- Modal Transportation L21C27C
Concept of Intermodal Transport 1. International Transport 2. At least two modes of transport 3. No handling the goods when changing modes Several Contracts of Carriage (traditional concept) Single Contract of Carriage but liability of carrier is based on each leg Multi- Modal Transportation L21C27C 13
Intermodal Transport Advantage 1. 2. 3. Increased ability to negotiate terms per stage or stretch of the route. Each supplier is responsible for its service. Possibility to choose carriers and take advantage of the best rates for each stage or stretch of the route. Fewer inspections because containers are sealed in advance. Because everything is loaded in the same container, the time it takes for loading and unloading is lower. Increased flexibility and special handling of loading and unloading in different ports. Cheaper insurance premiums. Consistent Capacity and service such as Rail and truck Quality Service because choice of selection Multi- Modal Transportation L21C27C 4. 5. 6. 7. 8. 9. 14
Intermodal Transport Disadvantage 1. Slower because cost reduction is prioritized. 2. Less reliability because there are several suppliers answering for their own services. 3. Tracking all the suppliers and coordinating solutions to delays with them. 4. More expenditures due to the need to coordinate several contracts with different suppliers. 5. The infrastructure that makes intermodal transportation easier for example, cranes for containers, is scarce and more expensive. 6. Additional packaging costs to mitigate damage when moving merchandise. 15 Multi- Modal Transportation L21C27C
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. 16 Multi- Modal Transportation L21C27C
Difference Between Intermodal And Multimodal Transportation. 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. 17 Multi- Modal Transportation L21C27C
Difference Between Intermodal And Multimodal Transportation. 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. 18 Multi- Modal Transportation L21C27C
Difference Between Intermodal And Multimodal 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. 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. 19 Multi- Modal Transportation L21C27C
Difference Between Intermodal And Multimodal Transportation. 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. 20 Multi- Modal Transportation L21C27C
Mode of transport It is a term used to distinguish between different ways of transportation or transporting people or goods. The different modes of transport are air, water, and land transport, which includes rails or railways, road and off-road transport. Other modes also exist, including pipelines, cable transport, and space transport. Human- powered transport and animal-powered transport are sometimes regarded as their own mode, but never fall into the other categories. In general, transportation is used for moving of people, animals, and other goods from one place to another. Means of transport, on the other hand, refers to the transport facilities used to carry people or cargo according to the chosen mode (animal, vehicle, car, airplane, ship, truck, train and so on and so forth). Each mode of transport has a fundamentally different technological solution, and some require a separate environment. Each mode has its own infrastructure, vehicles, transport operators and operations. Multi- Modal Transportation L21C27C 21
Air Afixed-wing aircraft, typically airplane, is a heavier-than-air flying vehicle, in which the special geometry of the wings generates lift and then lifts the whole vehicle. Fixed-wing aircraft range from small trainers and recreational aircraft to large airliners and military cargo aircraft. For short distances or in places without runways, helicopters can be operable.(Other types of aircraft, like autogyros and airships, are not a significant portion of air transport.) Air transport is the fastest method of transport, Commercial jets reach speeds of up to 955 kilometers per hour (593 mph) and a considerably higher ground speed if there is a jet stream tailwind, while piston- powered general aviation aircraft may reach up to 555 kilometers per hour (345 mph) or more. Multi- Modal Transportation L21C27C 22
Air This celerity comes with higher cost and energy use, and aviation's impacts to the environment and particularly the global climate require consideration when comparing modes of transportation. The Intergovernmental Panel on Climate Change (IPCC) estimates a commercial jet's flight to have some 2-4 times the effect on the climate than if the same CO2emissions were made at ground level, because of different atmospheric chemistry and radiative forcing effects at the higher altitude.U.S. airlines alone burned about 16.2 billion gallons of fuel during the twelve months between October 2013 and September 2014.WHO estimates that globally as many as 500,000 people at a time are on planes. 23 Multi- Modal Transportation L21C27C
Air The global trend has been for increasing numbers of people to travel by air, and individually to do so with increasing frequency and over longer distances, a dilemma that has the attention of climate scientists and other researchers,]the press, and the World Wide Web. The issue of impacts from frequent travel, particularly by air because of the long distances that are easily covered in one or a few days, is called hypermobility and has been a topic of research and governmental concern for many years. 24 Multi- Modal Transportation L21C27C
Rail Rail transport is a means of conveyance of passengers and goods by way of wheeled vehicles running on rail track, known as a railway or railroad. The rails are anchored perpendicular to railroad train consists of one or more connected vehicles that run on the rails. Propulsion is commonly provided by a locomotive, that hauls a series of unpowered cars, that can carry passengers or freight. The locomotive can be powered by steam, diesel or by electricity supplied by trackside systems. Alternatively, some or all the cars can be powered, known as a multiple unit. Also, a train can be powered by horses, cables, gravity, pneumatics and gas turbines. Railed vehicles move with much less friction than rubber tires on paved roads, making trains more energy efficient, though not as efficient as ships. Intercity trains are long-haul services connecting cities; modern high-speed rail is capable of speeds up to 430 km/h (270 mph), but this requires a specially built track. Regional and commuter trains feed cities from suburbs and surrounding areas, while intra-urban transport is performed by high-capacity tramways and rapid transits, often making up the backbone of a city's public transport. Freight trains traditionally used box cars, requiring manual loading and unloading of the cargo. Since the 1960s, container trains have become the dominant solution for general freight, while large quantities of bulk are transported by dedicated trains. Multi- Modal Transportation L21C27C 25
Road Bus, cars and bicycles Trams, lorries, cars, bicycles and rickshaws, 1945 A road is an identifiable route of travel, usually surfaced with gravel, asphalt or concrete, and supporting land passage by foot or by a number of vehicles. The most common road vehicle in the developed world is the automobile, a wheeled passenger vehicle that carries its own motor. As of 2002, there were 591 million automobiles worldwide. Other users of roads include motorcars, motorcycles, buses, trucks, bicycles and pedestrians, and special provisions are sometimes made for each of these. For example, the use of bus lanes give priority for public transport, and cycle lanes provide special areas of road for bicycles to use. Motorcars offer high flexibility, but are deemed with high energy and area use, and the main source of noise and air pollution in cities; buses allow for more efficient travel at the cost of reduced flexibility.Road transport by truck is often the initial and final stage of freight transport. 26 Multi- Modal Transportation L21C27C
Water Water transport is the process of transport that a watercraft, such as a bart, ship or sailboat, makes over a body of water, such as a sea, ocean, lake, canal or river. If a boat or other vessel can successfully pass through a waterway it is known as a navigable waterway. The need for buoyancy unites watercraft, and makes the hull a dominant aspect of its construction, maintenance and appearance. When a boat is floating on the water the hull of the boat is pushing aside water where the hull now is, this is known as displacement. In the 1800s, the first steamboats were developed, using a steam engine to drive a paddle wheel or propeller to move the ship. The steam was produced using wood or coal. Now, most ships have an engine using a slightly refined type of petroleum called bunker fuel. Some ships, such as submarines, use nuclear power to produce the steam. Recreational or educational craft still use wind power, while some smaller craft use internal combustion engines to drive one or more propellers, or in the case of jet boats, an inboard water jet. In shallow draft areas, hovercraft are propelled by large pusher-prop fans. Although slow, modern sea transport is a highly effective method of transporting large quantities of non-perishable goods. Commercial vessels, nearly 35,000 in number, carried 7.4 billion tons of cargo in 2007.Transport by water is significantly less costly than air transport for transcontinental shipping; short sea shipping and ferries remain viable in coastal areas. 27 Multi- Modal Transportation L21C27C
Pipelines Pipelines can refer to gathering systems (wellhead to processing facilities), transmission lines (supply areas to markets), or distribution pipelines (most commonly to transport natural gas to medium or small consumer units).Pipelines play a very critical role in the transportation process because most of the oil moves through pipelines for at least part of the route. After the crude oil is separated from natural gas, pipelines transport the oil to another carrier or directly to a refinery. Petroleum products then travel from the refinery to market by tanker, truck, railroad tank car, or pipeline. As natural gas production grows in the United States, demand for new pipeline construction has been increasing. The United States has about 300,000 miles of natural gas transmission pipelines. 28 Multi- Modal Transportation L21C27C
Pipelines Strategic planning involves determining the shortest and most economical routes where pipelines are built, the number of pumping stations and natural gas compression stations along the line, and terminal storage facilities so that oil from almost any field can be shipped to any refinery on demand.Offshore pipelines carry more risk for leaks and environmental impact than onshore pipelines, but technological advancements in pipeline material and monitoring systems have improved pipeline safety and efficiency. Standards exist for safety in the design and construction of pipelines, and are published by organizations such as the International Organization for Standardization (ISO) and the American Petroleum Institute (API). The Federal Energy Regulatory Commission (FERC) regulates the interstate transportation of natural gas and oil, and approves LNG terminals and natural gas pipelines. Before FERC was created in 1977, Interstate Commerce Commission was responsible for regulating oil and gas transportation 29 Multi- Modal Transportation L21C27C
Parcel Carriers All e-retailers rely on the major parcel carriers to handle critical last mile delivery of packages to the customer s doorstep. While most fulfillment operations use all the big parcel carriers to some degree, most favor one specific carrier that best suits the needs of their operation. If you re wondering how to determine the best parcel carrier for your ecommerce shipping needs, read on. Figuring Out the Best Parcel Carrier for Your Needs- The big-name carriers dominate the parcel space the United States Postal Service (USPS), UPS, FedEx, and DHL. Larger online sellers may also rely on a network of smaller regional carriers to supplement last-mile delivery in bigger cities. Even if you have a 3PL providing parcel shipping services on your behalf, that 3PL uses some combination of the above to get your packages into your customers hands. The services of these carriers are similar, but different enough that zeroing in on the right one for your specific requirements can enhance your customer experience and reduce parcel freight costs. 30 Multi- Modal Transportation L21C27C
Need of Multimodal Transportation Package Weight- Dimensional weight, or DIM weight, is a technique used by parcel carriers to determine the cost of shipping parcels and incentivize customers to streamline packaging size. The height, width, and length of the package are multiplied together, and the total gets divided by a set divisor to determine its DIM weight. Parcel carriers charge for actual weight or DIM weight rounded up the nearest whole pound (whichever is higher). If you move a lot of large packages, examine the current dimensional weight pricing models of each carrier to see if a particular carrier has more affordable rates for your most common parcels. It s important to note that 3PLs shipping a high volume of parcels, like Amware Fulfillment, will negotiate a more favorable DIM factor (a higher divisor) so the published rates from the carriers don t tell the whole story. For instance, a 14-pound package by DIM weight could be charged at a 10-pound rate with a favorable DIM factor applied. 31 Multi- Modal Transportation L21C27C
Need of Multimodal Transportation Let s take a look at those published carrier rates by taking a package with 16x12x10 dimensions and putting it through the dimensional weight formula of each major carrier: USPS. The USPS uses a standard DIM divisor of 166, so 16x12x10 = 1920. 1920 166 comes out to 11.57 pounds. With USPS, your parcel s DIM weight is 12 lbs. If the actual weight of your package is less than 12 lbs., you will be billed for shipping a 12-lb. package. If the actual weight is higher, you get billed for the actual package weight. In terms of DIM weight, USPS and UPS offer a more cost-effective choice for shippers of large parcels with an actual weight lower than their DIM weight, but that s only if customers set up daily pick-ups that allow them to pay Daily Rates rather than Retail Rates. In terms of actual weight, most of the private carriers have a minimum parcel weight of one pound. Shippers moving high volumes of small packages that weigh less than a pound for example, nutraceutical businesses will benefit most from a relationship with USPS so they don t get overcharged on low-weight packages. Bottom line: DIM weight is a critical factor. Don t ignore the huge savings potential of aligning with a 3PL that has negotiated a favorable DIM factor with one or more of the major parcel carriers. 32 Multi- Modal Transportation L21C27C
Need of Multimodal Transportation Transit Time- Transit time expectations weigh heavily into parcel carrier selection. Some shippers put a lot of stock into shipping times, but others may not care if the package takes a week to arrive. When determining the best parcel shipping option, you have to carefully consider your time constraints and customer expectations to determine which carrier provides the most affordable service within that window. Total Shipping Cost If you re shipping a $5 product, you can t afford a $20 shipping charge to get it to your customer in two days. Consider your service options for each carrier. For example, if your customer is within the first few shipping zones, the package will probably arrive within the two-day window even using a cheaper standard ground delivery service, versus an expedited option. Rates vary widely depending on the carrier and specific shipping service you choose. Here are some tips about each carrier s costs to inform your choice: 33 Multi- Modal Transportation L21C27C
Need of Multimodal Transportation Communication- First and foremost, we need to talk about coordination. Multimodal movement wins over intermodal movement due to much clearer communication. Talking to one carrier company or service is enough to make freight logistics complicated. Coordination with multiple carriers can decrease efficiency and lead to loading and shipment delays. Keeping the movement down to a single contract means better overall control of transit and less contracts-related work for your legal department. Accountability- Speaking of contractual obligations, a multimodal movement also means that only one agent or provider is responsible for the movement of the freight. The tricky part of managing a supply chain is tracking and holding individual shippers and suppliers accountable for delays and wasted resources. Having one agent responsible for the freight is even referred to as "door-to-door" coverage, meaning your shipment is secured by one company. A single-contract mode will save you hours of freight management and bring the operational cost down. 34 Multi- Modal Transportation L21C27C
Key Issues of Multi Modal Transport Accessibility - Unless you're shipping fragile freight or any freight across the ocean, which entails movement between ports, keeping the cargo in one container means worse access for the carriers. Meanwhile, a combination of different modes of transport means that each mode comes with its own constraints. Deadlines- Delivery is good when it's on time and in full (OTIF). Supply chain efficiency, logistics management, and customer satisfaction all depend on the shipping deadlines being met. A clear benefit of multimodal movement is that you minimize delivery delays by giving one company control over the entire freight. Door-to-door, after all, means that shippers and carrier providers are on the same page with shipments are order fulfillment. Going with multimodal shipping over intermodal shipping helps you reduce the risk of delays and keep customer satisfaction consistently high. 35 Multi- Modal Transportation L21C27C
Key Issues of Multi Modal Transport Excessive paperwork- Even though intermodal and multimodal movements are different in terms of the number of contracts you have to deal with, multimodal shipping can still be bothersome in terms of paperwork. For example, you've settled on a carrier company that handles multimodal transport for you. Your job as a shipper is done here, right? The bad news is, the company can still invoice you for different services, i.e. each leg of transportation. As you spend more and more time processing each paper invoice, the overall shipping cost keeps growing. This is a sign for the transport and logistics industry to go paperless. Challenge: paper invoices for different services individually. Solution: paperless delivery management systems that support e-sign and photo proof of delivery. Multi- Modal Transportation L21C27C 36
Key Issues of Multi Modal Transport Poor tracking & coordination In long-haul freight, tracking a single shipment can require a combination of resources even when transportation boils down to one shipper and one carrier. Even inland movement can be tricky to monitor, let alone air cargo freight and port-to-port ocean shipments. Challenge: poor tracking and the need for constant updates. Solution: track and trace as well as automatic shipment notifications. Supply chain disruptions In 2023, no shipper is immune to supply chain disruptions. The pandemic has posed many challenges to both intermodal and multimodal transport systems, and the logistics industry is still taking a blow to this day. Especially with different modes of transport involved, shippers need to have security that in reality means being prepared for supply chain disruptions and having different intermodal and multimodal solutions as alternatives. Challenge: safety concerns, disrupted service, and inflated shipping costs. Solution: switching to local suppliers and investing in local distribution networks. Multi- Modal Transportation L21C27C 37
Assignment Q.1. Differentiate between Multi modal & Inter modal Transport. Q.2. Explain about mode of transport. 38
MODULE II How to organize Multi modal transport-Role of Containerization in MMT-history, utility, types, ease of handling, cost saving-Types of Multi modal transport-combined container transport, rolling road & forwarding of trailers, RORO & LASH transportation- National Multi modal Transport Committee (NMTC) and Logistics Policy of India-key features and importance. 39 Multi- Modal Transportation L21C27C
How to organize Multi modal transport? Multimodal transportation includes walking, biking, transit, rail, cars and trucks. Multimodal transportation is the movement of people and goods on roadways, including but not limited to, motorists, transit-riders, freight- carriers bicyclists and pedestrians, including those with disabilities. 40 Multi- Modal Transportation L21C27C
How to organize Multi modal transport? Multi-modal planning refers to planning that considers various modes (walking, cycling, automobile, public transit, etc.) and connections among modes. There are several specific types of transport planning which reflect various scales and objectives: Traffic impact studies evaluate traffic impacts and mitigation strategies for a particular development or project. Local transport planning develops municipal and neighborhood transport plans. Regional transportation planning develops plans for a metropolitan region. State, provincial and national transportation planning develops plans for a large jurisdiction, to be implemented by a transportation agency. Multi- Modal Transportation L21C27C 41
How to organize Multi modal transport? Strategic transportation plans develop long-range plans, typically 20-40 years into the future. Transportation improvement plans (TIPs) or action plans identify specific projects and programs to be implemented within a few years. Corridor transportation plans identify projects and programs to be implemented on a specific corridor, such as along a particular highway, bridge or route. Mode- or area-specific transport plans identify ways to improve a particular mode (walking, cycling, public transit, etc.) or area (a campus, downtown, industrial park, etc.). 42 Multi- Modal Transportation L21C27C
How to organize Multi modal transport? A transport planning process typically includes the following steps: Monitor existing conditions. Forecast future population and employment growth, and identify major growth corridors. Identify current and projected future transport problems and needs, and various projects and strategies to address those needs. Evaluate and prioritize potential improvement projects and strategies. Develop long-range plans and short-range programs identifying specific capital projects and operational strategies. Develop a financial plan for implementing the selected projects and strategies. Multi- Modal Transportation L21C27C 43
Transport-Role of Containerization in MMT-history The history of containerization is a development that can be pinpointed to the mid-20thcentury. Pioneered by an US-based conveyance businessman Malcolm Mclean, cargo containers were fashioned in a bid to simplify the long-drawn processes involved in shipping of cargo through sea routes. The extremely lengthy processes primarily meant that the cargo had to be suitably dismantled or separated before it could be loaded into the ships. This meant that effective labor was wasted in the initial dismantling and the later assembling procedures, and huge amounts of cargo had to be sub-divided merely because of technical restrictions and there was absolutely no standardization in the entire shipping processes. 44 Multi- Modal Transportation L21C27C
Transport-Role of Containerization in MMT-history Malcolm Mclean circumvented this protracted cargo transportation issue by modifying the basic structuring of a Second World War tanker vessel. The initial cargo containers utilized in the vessel were modified as well, and were wheel- less truck-carts. The entire success of such a novel initiative however depended on whether the modified truck-carts laded with cargo could be successfully placed into the vessel and thus transported to the necessary destination. Exceeding expectations, the ingeniously devised contraption proved to be a huge success. This success meant that for the foreseeable future, shipping cargo bulk or otherwise could be carried out with the least possible problems. 45 Multi- Modal Transportation L21C27C
Salient Features of Containerization Transiting costs for the cargo to be shipped were reduced drastically on account of the elimination of the unwanted processes Large amount of cargo could be transported which meant that transporters benefited from the economies of scale The feasibility offered by shipping containers also ensured that the water navigable channels could be utilized for transiting freight internationally Development of harbor facilities also took place simultaneously once the qualitative worth of container shipping began to spread far and wide 46 Multi- Modal Transportation L21C27C
Noteworthy Development A major noteworthy development in the history of container ships was realized when major maritime organisations acknowledged the singularity that shipping containers offered to the marine domain. This acknowledgement was also marked by the establishment of set rules and regulations with respect to the sizing of the containers. In order to bring a common platform to all containers, the International StandardizingAuthority (ISO) established the following: Containers that measured 20-feet lengthwise. Such containers were soon referred to as TEUs (Twenty-foot Equivalent Units) Containers that measured 40-feet lengthwise. Such containers soon came to be referred as FEUs (Forty-foot Equivalent Units) or more commonly, as Two-TEUs Multi- Modal Transportation L21C27C 47
Detrimental Effects to the Cargo Shipping Sector Although containerization provided a breakthrough in the global shipping sector, there were several adverse effects that were felt because of the changes it wrought. The labour force that was otherwise employed in the dismantling and the assembly-line operations, prior to the development of cargo containers started to become redundant Motorized operational links meant that lesser number of labour force needed to be involved in the lading and unloading of the freight to be shipped Semi-skilled labour force and even skilled labour force, engaged in carrying out only one kind of operations at harbor facilities were also negatively impacted 48 Multi- Modal Transportation L21C27C
Present-era: Container Shipping In the over 50-years of the initiation of shipping containers into mainstream maritime freight operations, a lot of advancement has been made. Today the global cargo shipping spectrum has widened to really enormous proportions while also helping several newer shipping conglomerates and even countries to enter the fray. With the extent of containerized operations and technological developments in the same increasing almost every day, it wouldn t be wrong to say that cargo movement in the present times cannot be visualized to fruition in the absence of container shipping 49 Multi- Modal Transportation L21C27C
Utility of Multi Modal Transportation Saving Money. The leading benefit of shipping multimodal is that it can save you a ton of money if performed properly. ... Improved Communication. Multimodal shipping involves communication between multiple parties in order to keep things running smoothly. ... Faster Transit. 50 Multi- Modal Transportation L21C27C
