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MULTI MODALISM

MULTI MODALISM. CHAPTER 11. INTRODUCTION. Multi-modalism / Combined Transport Operation:

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MULTI MODALISM

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  1. MULTI MODALISM CHAPTER 11

  2. INTRODUCTION • Multi-modalism / Combined Transport Operation: Process of operating a door-to-door/ warehouse-to-warehouse service for the shipper, involving 2 or more forms of transport, with the merchandise being conveyed in the same unitized form for the entire transit.

  3. INTRODUCTION • Any mode of transport: road, rail, inland waterway, sea or air – may be involved. • International distribution network is becoming more integrated & MM will play major role. • Traditional seaport to seaport operation is no longer acceptable. • Integrated operation involving carriers, suppliers, consignor and consignee.

  4. INTRODUCTION • Production of product in different location or countries. • Global operation with no time or trade barriers. • MM infrastructure offers low-cost global distribution, fast transit, dedicated services.

  5. MM BENEFIT FOR SHIPPERS • Reliable service, frequent & competitively priced. • Goods arrive within scheduled. • Dedicated & integrated schedules • Benefit companies that has global network & operate on JIT basis. • Equipped with EDI. • Tailor made service • Tailor made for certain trade/commodities • Use high-tech purpose-built equipment.

  6. MM BENEFIT FOR SHIPPERS • Minimum documentation. • Used of through BOL, through rate. • Faster & rapid transit facilitate earlier payments. • Encourages usage of common code, standard, practice on international scale. • Goods arrive in good & better condition.

  7. FORMS OF MM Containerization • Method of distributing merchandise in unitized form. • Suitable for transportation by rail, road, air, canal & sea. • Block movement of container, through interconnect land & maritime terminals.

  8. FORMS OF MM Land Bridge • Overland transport between following and/or preceding sea transport of goods and/or containers. • Could be: • LB via trailer/truck – road/sea/road • LB via pallet/IATA container – road/sea/air/road

  9. FORMS OF MM Piggy Back Operation • Most recent development in MM. Involved usage of road, rail & vehicular ferries. • Road trailers are conveyed by vehicular ferries from one port to another. • Might be loaded to railway wagon for carriage by scheduled train, to certain location. • Then continue journey by road to consignee.

  10. FORMS OF MM • Piggy Back Advantage: • Fast transit time through scheduled road, sea & rail services. • No loading/unloading delay at port. • Cheaper cost. • Less wear & tear on trailer equipment.

  11. FORMS OF MM • Inland Waterways • Sea shipping is integrated with inland waterways (river/canal). • Employ barge carriers for voyages between port & inland waterway connections. • Barge carrying vessel: specialized sea - going ship which can carry barges. • Permits separation of the ship from the barge, which handled the cargo to consignee.

  12. Obstacles to Multi-modalism • Conflicts of interest • Potential conflicts of interest between different parties involved in long international supply chains. • Each party anxious to protect their position & market share • Also between government of different country.

  13. Obstacles to Multi-modalism 2.Lack of money • Growth of MM has been slowed by the widespread shortage of public investment funds. 3.Regulatory impediments • Despite widespread deregulation of transport has taken place over the last few years, there are still many regulatory impediments to MM. • Both within individual countries and at border crossings.

  14. Obstacles to Multi-modalism 4. Security concerns • Still confusion about who is responsible when things go wrong. • Many large MM operators prepared to absorb the risk – take cargo insurance. • However, it is difficult for smaller operators to absorb risk. • Have an important psychological effect on customer attitudes towards MM.

  15. Obstacles to Multi-modalism 5.Insufficient knowledge of user requirements • Because MM services are provided by competing private carriers, there is relatively little discussion or sharing of information about customer needs. • Organizations paid very little attention to customer requirements. • Not fully aware of the types of service for which there is an emerging customer demand

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