3/18/2023

MULTIMODAL TRANSPORT MANAGEMENT

LECTURE 2

Assoc. Prof. Nguyen Minh Ngoc

National Economics University
Hanoi, Vietnam
2023

CHAPTER 2. TRANSPORT MODES IN

MULTIMODAL TRANSPORT

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INTRODUCTION
Chapter Objectives:
• Interpret concepts and apply principles in multimodal transport
• Apply the learned knowledge to describe, explain, and design the
multimodal transport operation process
• Apply the learned knowlege to describe, explain, and design multimodal
transport services

INTRODUCTION
Chapter Contents:
1.1. Concept, origin, and development of multimodal transport (lecture 1)
1.2. Main participants in multimodal transport (lecture 1)
1.3. Demand for multimodal transport services (lecture 2)
1.4. Supply of multimodal transport services (lecture 2)
1.5. Factors driving the development of multimodal transport (lecture 2)

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INTRODUCTION
Materials:
• Vasco Reis, Rosario Macario (2019), Intermodal Freight Transportation,
Elsevier: Chapter 1
• Monios, J. and Bergqvist, R. eds., (2017), Intermodal freight transport and
logistics: chapter 1
• Lowe, D., (2005), Intermodal freight transport. Routledge, Chapter 1, pp1-
13
• Vasco Reis, Rosario Macario (2019), Intermodal Freight Transportation,
Elsevier: Chapter 2
• Monios, J. and Bergqvist, R. eds., (2017), Intermodal freight transport and
logistics: chapter 1

1.3. Demand for multimodal transport

service

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Increase in demand for multimodal transport

a. International trade
• International trade flows are main drivers of multimodal
transport
• There is a positive correlation between multimodal
transport and international trade
• Therefore, to expand international trade, governments of
many countries have policies to develop multimodal
transport

Increase in demand for multimodal transport

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Increase in demand for multimodal transport

International trade
• Maritime transport: 80% of international trade
• Container: 60% of Maritime transport (value of goods
transported: 14 trillion U.S. dollars in 2019)
• Volume of goods transported by maritime container
transport: 102 million metric tons in 1980 to about 1.83
billion metric tons in 2017
Nguồn: https://www.statista.com/

Increase in demand for multimodal transport

International trade of Vietnam

300.0 120%
282.7
264.3
243.5

250.0 100%
214.0
176.6

200.0 80%
162.0
150.2
132.0

150.0 60%
114.5
96.9

100.0 40%
72.2
62.7

57.1
48.6
39.8
32.4

50.0 20%
26.5
20.1
16.7
15.0

106.7

113.8

132.0

147.8

165.8

174.8

211.1

236.7

253.3

262.7
16.2

19.7

25.3

32.0

36.8

44.9

62.8

80.7

69.9

84.8

0.0 0%
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Xuất khẩu Nhập khẩu (**) Xuất khẩu/GDP Nhập khẩu/GDP

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Increase in demand for multimodal transport

b. The increase in complexity of supply chains

• The market is increasingly fragmented => unbalanced
goods flows
• Wider coverage of supply chain => goods are
transpored in different conditions

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Increase in demand for multimodal transport

• The market is increasingly fragmented =>

unbalanced goods flows

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Increase in demand for multimodal transport

• Wider coverage of supply chain => goods are

transpored in different conditions

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Increase in demand for multimodal transport

c. Environmental pressures
• Greening supply chains
• Transporting goods by modes of transport that cause
less environmental pollution

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Demand for multimodal transport by terms of trade

d. Terms of trade
• Describe the practical arrangements for the delivery of
goods from sellers to buyers and allocate the obligations,
costs and risks between the 2 parties
• Define
- where the goods will be delivered
- who arranges transport
- who handles and pays for insurance
- who handles customs procedures
- who pays any duties and taxes

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Demand for multimodal transport by terms of trade

Ex Works TERM
• The seller makes the goods available at the seller's
location, so the buyer can take over all the transportation
costs and also bears the risks of bringing the goods to their
final destination.
Related to demand for multimodal transport service
• The seller do not have a demand formultimodal transport
services
• The buyer do have a demand for multimodal transport
services

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Demand for multimodal transport by terms of trade

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Demand for multimodal transport by terms of trade

D TERMS
• Delivered at Terminal (DAT): DAT is when the seller delivers
the goods to a named place of destination, once the goods
have been unloaded. The seller has full responsibility for
the goods up until the named place of destination.
• Delivered at Place (DAP): DAP is when the seller delivers
the goods ready for unloading at the named place of
destination. The seller has full responsibility for the goods
up to the named place of destination.
• Delivered Duty Paid (DDP): This is for when the seller is
responsible for all costs and risks relating to the delivery of
goods to the buyer's named place of destination. This
includes clearing goods for export and import, paying any
duty and carrying out customs formalities.

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Demand for multimodal transport by terms of trade

D TERMS
Related to demand for multimodal transport service
• The seller do have a demand formultimodal transport
services
• The buyer do not have demand for multimodal transport
services

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Demand for multimodal transport by terms of trade

Group D Terms

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Selection of the multimodal transport service providers

• Lowest Total Cost: But not the lowest transportation cost

• The most appropriate Speed: But not the fastest
• Reliability: Not early – not late
• Transport capacity: Can dangerous goods be transported?
• Access: Door to Door

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1.4. Supply of multimodal transport

services

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Supply of multimodal transport services

 Multimodal Transport Operator

Any 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 of the carriers participating in the
multimodal transport operations, and who assumes
responsibility for the performance of the contract.

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Supply of multimodal transport services

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Supply of multimodal transport services

 Subcontractor or agents/partners of multimodal transport

operator
- Trucking/road transport companies
- Rail transport companies
- Inland waterway transport companies
- Air freight companies
- Maritime companies
- Multimodal transport terminals
- Companies providing other logistics services

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1.5. Factors driving the

development of multimodal
transport

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Factors driving development of multimodal transport services

 Trade, international trade: Trade flows

 Supply chain: fragmented market and complexity of supply
chains
 Cost: minize logistics cost
 Environmental protection: environment friendly transport
modals
 Standard Loading unit: Container
 Development of information technologies

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End of Lecture 2

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INTRODUCTION
Assessment Coponents:
• Class Participation (10%)
• Case Based Individual Assignment (20%)
• Group Assignment-Multimodal Transport Plan (40%)
• Individual Final Test (30%)

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INTRODUCTION
Timetable:
• Lectures on Friday
7:30 AM to 9:30 AM
• Tutoring on Monday
Session 1: from 1:00 PM to 3:00 PM
Session 2: from 3:30 PM to 5:30 PM

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