Multimodal Transport 1 Prof. Ashok Advani - Jaipuria Institute of Management, Noida.

Multimodal Transport

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Prof. Ashok Advani - Jaipuria Institute of Management, Noida


Evolution of Multimodal Transport


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Multimodal Transport - Evolution

Segmented Transport

Pre-containerization era

• Different modes of transport

• Separate contracts

• Road Transportation• Sea Transportation• Loading in Port• Insurance• Discharge at destination• Transportation to Importer’s Warehouse


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Segmented Transport

Implications

• Presence of trading parties at all stages• Difficulty in determination of all costs• Poor co-ordination - transport• Poor co-ordination - documentation• Difficulty in cargo claims settlement• Complexity of business


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Transport Logistics

Ship Owners – Cargo Owners Responsibility – Loading to Discharge Ship’s rail taken as datum

• Marks & numbers• Cargo condition• Appropriate clauses in B/L


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Transport Logistics

Containerization

• Ships rail no longer a datum• Datum point moved inland• Container as cargo unit• New terms to establish responsibilities Buyer & Seller


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Transport Logistics

Implications

• Legal implications between buyer & seller re-established• Negotiable transport documents• MTC evidences taking charge of goods & undertakes delivery as per terms of contract• Introduction of INCO terms


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Definition – Multimodal Transport

“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 a multimodal transport operator to a place designated for delivery in a different country.”

One transport document, one rate and through liability are used


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Definition – MTO

“A person who on his own behalf or through another person acting on his behalf concludes a multimodal transport contract and who acts as a principal, not as an agent, or on behalf of the consignor or the carriers participating in the multimodal transport operations and who assumes responsibility for the performance of the contract.”


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Definition – MTC

“A contract whereby a multimodal transport operator undertakes, against payment of freight, to perform, or to procure the performance of international multimodal transport.”


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Definition – MTD

“It is the evidence of multimodal transport contract, which means taking the charge of the goods by the multimodal transport operator and undertaking by him to deliver the goods in accordance with the terms of the contract.”

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Unimodal – Intermodal - Multimodal


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Unimodal Transport

Single mode of Transport

Each carrier issues own transport document

• Bill of Lading• Airway Bill• Consignment Note

Example:

• Ocean transport combining move by two vessels basis trans-shipment• Through Bill of Lading• Responsibility may vary


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Intermodal

It is the movement of cargo from origin to destination by several modes of transport

Each of the modes have a different transport provider or entity responsible

Each contract is independent

Multiple carriers during a single journey

Differentiation lies in the contract and responsibility of the movement


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Intermodal

Example

ICD TKD – Bhiwadi – ICD TKD – Nhava Sheva – Durban – Pretoria

Operation an Intermodal operation as involves several contracts

Between Seller or Buyer and Transport service provider for road movement from ICD TKD to Bhiwadi (empty) & Bhiwadi to ICD TKD (loaded)

Between Seller or Buyer and Carrier for sea movement from Nhava Sheva to Durban

Between Seller or Buyer and Transport service provider(s) for rail/road movement from Durban to Pretoria


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Intermodal

Example


Operation an Intermodal operation as involves several contracts

The costs/risks for such contracts will of course depend on the Incoterms® used for this trade

The carrier issues a port to port Bill of Lading


Intermodal Transport

Several modes of Transport

One or several transport documents

• Issuing carrier may not take responsibility for entire transport

Ocean carrier may issue “Combined Transport Bill of Lading”

• First carrier responsible for his part of transportation• As Agent – subsequent modes


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http://i1.wp.com/shippingandfreightresource.com/wp-content/uploads/2013/07/intermodal1.png


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Multimodal

It is the movement of cargo from origin to destination by several modes of transport

Each of these modes have a different transport provider or entity responsible

Governed under a single contract

Single carrier during a single journey

Differentiation lies in the contract and responsibility of the movement


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Multimodal

Example


Operation a Multimodal operation as involves single contract

Here, neither the seller nor the buyer are arranging any contracts other than their contract of carriage with the carrier

The costs/risks for such contracts will of course depend on the Incoterms® used for this trade

In this case, the carrier issues a Combined Transport Bill of Lading or a Multimodal Bill of Lading


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http://i1.wp.com/shippingandfreightresource.com/wp-content/uploads/2013/07/multimodal1.png


Aim-Multimodal Transport

Efficiency Faster Transits Reduced Costs Competitiveness for Exports Reduced Import costs Savings in Foreign Exchange Co-ordination-different modes Co-ordination-documentation


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Multimodal Transport Freight Structure


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Containerized cargo

• Origin – hinterlands• Road / Rail to Port• Road preferred option• No transit guarantees given by rail• No dedicated rail tracks for freight movement


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Freight structure• Ocean Freight• Inland Freight• Factory stuffed / ICD stuffed / Port stuffed

USA – Shipping Line owns or leases trucking services• Inland Freight – Interstate Commerce Commission


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Inland Freight structure

• Rail vs. Road

• Road transport• Container size• Cargo weight• Nature of cargo• Distance• Border crossings• Octroi posts


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Multimodal Transport 1 Prof. Ashok Advani - Jaipuria Institute of Management, Noida.

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