Multimodal transport

Last updated December 12, 2023

Multimodal transport (also known as combined transport) is the transportation of goods under a single contract, but performed with at least two different modes of transport; the carrier is liable (in a legal sense) for the entire carriage, even though it is performed by several different modes of transport (by rail, sea and road, for example). The carrier does not have to possess all the means of transport, and in practice usually does not; the carriage is often performed by sub-carriers (referred to in legal language as "actual carriers"). The carrier responsible for the entire carriage is referred to as a multimodal transport operator, or MTO.

Article 1.1. of the United Nations Convention on International Multimodal Transport of Goods (Geneva, 24 May 1980) (which will only enter into force 12 months after 30 countries ratify; as of May 2019, only 6 countries have ratified the treaty^[1]) defines multimodal transport as follows: "'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".^[2]

Overview

In practice, freight forwarders have become important MTOs; they have moved away from their traditional role as agents for the sender, accepting a greater liability as carriers. Large sea carriers have also evolved into MTOs; they provide customers with so-called door-to-door service. The sea carrier offers transport from the sender's premises (usually located inland) to the receiver's premises (also usually situated inland), rather than offering traditional tackle-to-tackle or pier-to-pier service. MTOs not in the possession of a sea vessel (even though the transport includes a sea leg) are referred to as Non-Vessel Operating Carriers (NVOC) in common law countries (especially the United States).

Multimodal transport developed in connection with the "container revolution" of the 1960s and 1970s; as of 2011, containerized transports are by far the most important multimodal consignments. However, it is important to remember that multimodal transport is not equivalent to container transport; multimodal transport is feasible without any form of container. The MTO works on behalf of the supplier; it assures the supplier (and the buyer) that their goods will be effectively managed and supplied.

Research

Influence of container on multimodalism

Multimodal transport research is being conducted across a wide range of government, commercial and academic centers. The Research and Innovative Technology Administration (RITA) within the U.S. Department of Transportation (USDOT) chairs an inter-agency Research, Development and Technology (RD&T) Planning Team. The University Transportation Center (UTC) program, which consists of more than 100 universities nationwide conducts multi-modal research and education programs.^[3] The European Commission has invested heavily in multimodal research under the H2020 programme^[4] – examples are CORE^[5] and SYNCHRO-NET.^[6]

Legal aspects

From a legal standpoint, multimodal transport creates several problems. Unimodal transports are currently governed by different, often-mandatory international conventions. These conventions stipulate different bases for liability, and different limitations of liability for the carrier. As of 2011, the solution to this problem has been the so-called network principle. According to the network principle, the different conventions coexist unchanged; the carrier's liability is defined according to where the breach of contract has occurred (where the goods have been damaged during transport, for example). However, problems arise if the breach of contract is systemic (not localized).

Related Research Articles

Freight transport, also referred as freight forwarding, is the physical process of transporting commodities and merchandise goods and cargo. The term shipping originally referred to transport by sea but in American English, it has been extended to refer to transport by land or air as well. "Logistics", a term borrowed from the military environment, is also used in the same sense.

A common carrier in common law countries is a person or company that transports goods or people for any person or company and is responsible for any possible loss of the goods during transport. A common carrier offers its services to the general public under license or authority provided by a regulatory body, which has usually been granted "ministerial authority" by the legislation that created it. The regulatory body may create, interpret, and enforce its regulations upon the common carrier with independence and finality as long as it acts within the bounds of the enabling legislation.

Containerization is a system of intermodal freight transport using intermodal containers. Containerization, also referred as container stuffing or container loading, is the process of unitization of cargoes in exports. Containerization is the predominant form of unitization of export cargoes, as opposed to other systems such as the barge system or palletization. The containers have standardized dimensions. They can be loaded and unloaded, stacked, transported efficiently over long distances, and transferred from one mode of transport to another—container ships, rail transport flatcars, and semi-trailer trucks—without being opened. The handling system is mechanized so that all handling is done with cranes and special forklift trucks. All containers are numbered and tracked using computerized systems.

An intermodal container, often called a shipping container or ISO Container, is a large standardized container designed and built for intermodal freight transport, meaning these containers can be used across different modes of transport – from ship to rail to truck – without unloading and reloading their cargo. Intermodal containers are primarily used to store and transport materials and products efficiently and securely in the global containerized intermodal freight transport system, but smaller numbers are in regional use as well. These containers are known under a number of names. Based on size alone, up to 95% of intermodal containers comply with ISO standards, and can officially be called ISO containers. Many other names are simply: container, cargo or freight container, shipping, sea or ocean container, container van or sea van, sea can or C can, or MILVAN, SEAVAN, or RO/RO. The also used term CONEX (Box) is a technically incorrect carry-over usage of the name of an important predecessor of the international ISO containers, namely the much smaller prior steel CONEX boxes used by the U.S. Army.

The Incoterms or International Commercial Terms are a series of pre-defined commercial terms published by the International Chamber of Commerce (ICC) relating to international commercial law. Incoterms define the responsibilities of exporters and importers in the arrangement of shipments and the transfer of liability involved at various stages of the transaction. They are widely used in international commercial transactions or procurement processes and their use is encouraged by trade councils, courts and international lawyers. A series of three-letter trade terms related to common contractual sales practices, the Incoterms rules are intended primarily to clearly communicate the tasks, costs, and risks associated with the global or international transportation and delivery of goods. Incoterms inform sales contracts defining respective obligations, costs, and risks involved in the delivery of goods from the seller to the buyer, but they do not themselves conclude a contract, determine the price payable, currency or credit terms, govern contract law or define where title to goods transfers.

Intermodal freight transport involves the transportation of freight in an intermodal container or vehicle, using multiple modes of transportation, without any handling of the freight itself when changing modes. The method reduces cargo handling, and so improves security, reduces damage and loss, and allows freight to be transported faster. Reduced costs over road trucking is the key benefit for inter-continental use. This may be offset by reduced timings for road transport over shorter distances.

In transportation, freight refers to goods conveyed by land, water or air, while cargo refers specifically to freight when conveyed via water or air. In economics, freight refers to goods transported at a freight rate for commercial gain. The term cargo is also used in case of goods in the cold-chain, because the perishable inventory is always in transit towards a final end-use, even when it is held in cold storage or other similar climate-controlled facilities, including warehouses.

In a contract of carriage, the consignee is the entity who is financially responsible for the receipt of a shipment. Generally, but not always, the consignee is the same as the receiver.

Rail freight transport is the use of railroads and trains to transport cargo as opposed to human passengers.

Truckload shipping is the movement of large amounts of homogeneous cargo, generally the amount necessary to fill an entire semi-trailer or intermodal container. A truckload carrier is a trucking company that generally contracts an entire trailer-load to a single customer. This is as opposed to a less-than truckload (LTL) company that generally mixes freight from several customers in each trailer. One advantage Full Truckload (FTL) carriers have over Less than Truckload carriers is that the freight is never handled en route, whereas an LTL shipment will typically be transported on several different trailers. Truckload shipments are typically run on 48' or 53'dry van trailers which will hold 24 or 26 pallets respectively.

A freight rate is a price at which a certain cargo is delivered from one point to another. The price depends on the form of the cargo, the mode of transport, the weight of the cargo, and the distance to the delivery destination. Many shipping services, especially air carriers, use dimensional weight for calculating the price, which takes into account both weight and volume of the cargo.

The Hague–Visby Rules is a set of international rules for the international carriage of goods by sea. They are a slightly updated version of the original Hague Rules which were drafted in Brussels in 1924.

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.

Transloading, also known as cross-docking, is the process of transferring a shipment from one mode of transportation to another. It is most commonly employed when one mode cannot be used for the entire trip, such as when goods must be shipped internationally from one inland point to another. Such a trip might require transport by truck to an airport, then by airplane overseas, and then by another truck to its destination; or it might involve bulk material loaded to rail at the mine and then transferred to a ship at a port. Transloading is also required at railroad break-of-gauge points, since the equipment can not pass from one track to another unless bogies are exchanged.

In the ocean shipping trade, neo-bulk cargo is a type of cargo that is a subcategory of general / break-bulk cargo, that exists alongside the other main categories of bulk cargo and containerized cargo. Gerhardt Muller, erstwhile professor at the United States Merchant Marine Academy and Manager of Regional Intermodal Planning of the Port Authority of New York and New Jersey, promotes it from a subcategory to being a third main category of cargo in its own right, alongside containerized and bulk cargo.

The UN Recommendations on the Transport of Dangerous Goods are contained in the UN Model Regulations prepared by the Subcommittee of Experts on the Transport of Dangerous Goods of the United Nations Economic and Social Council (ECOSOC). They cover the transport of dangerous goods by all modes of transport except by bulk tanker. They are not obligatory or legally binding on individual countries, but have gained a wide degree of international acceptance: they form the basis of several international agreements and many national laws.

<span class="mw-page-title-main">Rotterdam Rules</span>

The "Rotterdam Rules" is a treaty proposing new international rules to revise the legal framework for maritime affreightment and carriage of goods by sea. The Rules primarily address the legal relationship between carriers and cargo-owners.

Norfolk Southern Ry. v. James N. Kirby, Pty Ltd., 543 U.S. 14 (2004), was a United States Supreme Court case that dealt with the extent to which maritime bills of lading cover non-maritime portions of a shipment, together with connected clauses for exclusion of liability.

A freight claim or cargo claim is a legal demand by a shipper or consignee against a carrier in respect of damage to a shipment, or loss thereof.

The law of carriage of goods by sea is a body of law that governs the rights and duties of shippers, carriers and consignees of marine cargo.

References

↑ "United Nations Convention on International Multimodal Transport of Goods". treaties.un.org. Retrieved 7 May 2019.
↑ United Nations Convention on International Multimodal Transport of Goods (Geneva, 24 May 1980)
↑ Testimony of Peter H. Appel RITA Administrator, U.S. House of Representatives Subcommittee on Technology and Innovation, November 19, 2009.
↑ http://ec.europa.eu/research/participants/data/ref/h2020/wp/2018-2020/main/h2020-wp1820-transport_en.pdf Horizon 2020 Work Programme: Smart, green and integrated transport (European Commission Decision C(2017)7124 of 27 October 2017).
↑ http://www.coreproject.eu/ - technologies for optimising and increasing resilience in multimodal supply chains.
↑ https://www.mjc2.com/synchronet.htm – synchro-modal optimisation of supply chains.