Multimodal Transport

Operations
 Chapter objectives
On completion of this chapter you should be able to:
Define the term “Multimodal transport”.
State the advantages of multimodal transport for
forwarders.
Describe the different forms of multimodal transport
operations and operators.
Understand different international conventions on
Multimodal Transport
State the relationship of a Multimodal Transport
Operator (MTO) with the intervening parties.
Describe the scope of services covered by an MTO.
 UNIMODAL TRANSPORT

Truck Port Ship Port Rail

Factory Road Port Sea Port Rail Factory

 UNIMODAL TRANSPORT

Truck Port Ship Port Rail

Factory Road Port Sea Port Rail Factory

Freight Forwarder/MTO
 Multimodal transport
• More than 2 modes of transport
• More than one country
• Under one contract/One document
• One responsible party MTO for the entire
carriage 🡪subcontract one or all modes to
other carrier MTO: act as a carrier, lo hết tất cả các transport mode
• Single liability
• Combined transport / Intermodal transport
 Multimodal transport defined
• “Multimodal transport means the carriage of
goods by at least two different mode 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”
 Multimodal transport
• More efficient ways of getting goods to market
• New ways of doing old business
• Container and ICT applications
• Using a combination of transport modes more
effectively
 Advantages of multimodal transport
• Minimizes time loss at trans-shipment points
- Multimodal transport operator maintains his own
communication links and coordinates interchange and
onward carriage smoothly at trans-shipment points.
• Provides faster transit of goods
- The faster transit of goods made possible under
multimodal transport reduces the disadvantages of
distance from markets and the tying-up of capital.
• Reduces burden of documentation and formalities
- The burden of issuing multiple documentation and
other formalities connected with each segmented of
the transport
 …cont. Advantages of multimodal
transport
• Saves 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.
• Establishes only one agency to deal with
- 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 delay in delivery at destination.
• Reduces cost of exports
–The inherent advantages of multimodal transport system will
help to reduce the cost of exports and improve their competitive
position in the international market.
 Forms of multimodal transport
operations
• Land-Sea-Land
–E.g. An empty container is picked up from the line’s container
yard in Singapore and trucked to shipper’s factory in Johore
(Malaysia) for stuffing, thereafter the FCL is trucked to Singapore.
–Ocean transportation from Singapore to New York.
–Truck from vessel to rail-head New York
–Rail from New York to rail-head Chicago
–Truck from Chicago rail-head to consignee’s warehouse.
• Where LCL cargo is concerned, the individual shipments would be
delivered to the freight forwarder’s CFS or the shipping line’s CFS
and consolidated into a FCL which, in Chicago, is trucked to
theCFS, where it is picked-up by the consignee’s truck.
Land – Sea - Land
 Road/Air/Road
• A combination of air carriage with truck transport is a
frequent method of multimodal service. Several
airlines are building up a number of trucking hubs in
Europe to act as focal points for road-based feeder
operations.
• Many airlines provide road service to cities which they
either find uneconomical to service by air, or to which
they do not enjoy landing rights. This road
transportation is often effected with their own
vehicles, and to and from their own facilities, but on
occasion they do also use highway common carriers.
 Sea/Air/Sea
• This combines the economy of sea transport and the
speed of air transport and is becoming increasingly
popular in several international trade routes like the
Far East -Europe route. The economics of this
combination mode favour high value items like
electronics, electrical goods, computers and
photographic equipment as well as goods with high
seasonal demand such as fashion wear and toys.
• •This multimodal operation is particularly applicable
where the route to be covered combines large
distances via land and water, and where transit time is
important
 Frequent sea/air services routes are:
ORIGIN MODE VIA MODE DESTINATION OPERATION
ASIA OCEAN DUBAI AIR EUROPE SEA-AIR

ASIA OCEAN SEATLE AIR EUROPE SEA-AIR

EUROPE OCAEN E.CANADA AIR W. CANADA SEA-AIR

NEPAL AIR SINGAPORE SEA EUROPE AIR-SEA

Rail/road/inland waterways/sea

Common use when goods

are moving from an inland
centre to the seaport in the
country of origin or from
the seaport to an inland
centre in the country of
destination.
 Mini-bridge
• This involves the movement of containers, under a through
bill of lading issued by an ocean carrier, by a vessel from a
port in one country to a port in another country and then by
rail to a second port city in the second country, terminating
at the rail carrier's terminal in the second port city.
• The mini-bridge offers the consignor a through container
rate inclusive of rail freight up to the final port city in the
country of destination. The railways are paid a flat rate per
container by the ocean carrier for the rail transit. This
system is in operation on certain routes covering the trade
between the United States and the Far East, United States /
Europe, United States /
 Land bridge
• This system concerns itself with shipment of
containers overland as a part of a sea-land or a
sea-land-sea route. In this case, the railways are paid a
flat rate by the ocean carrier who issues the through
bill of lading.
• •This system is in operation for the movement of
containers on certain important international routes
such as: between Europe or the Middle East and the
Far East via the Trans-Siberian land bridge; and
between Europe and the Far East via the Atlantic and
Pacific coasts of the U.S.A., continental U.S.A. being
used as a land bridge
 Ro-Ro (Roll on –Roll off)
• This mode combines different means of
transportation (sea and road), and is used
most often with new automobiles, which are
shipped by sea and them simply driven off the
vessel to the importer’s warehouse. Heavy
and over-dimensional cargo is also suitable for
Ro-Ro transport.
Ro-Ro (Roll on –Roll off)
 L.A.S.H. (Lighter Abroad Ship)
LASH transport is the combination of deep sea and inland
waterway transportation. An example is the route from Germany
to the Mississippi Ports where the barges sail down the Rhine,
Elbe or Weser in Germany, are loaded onto LASH container vessels
in Rotterdam, Hamburg or Bremen; are then carried across the
Atlantic, only to be unloaded at a Mississippi delta port to sail
upstream in the U.S.
 L.A.S.H. (Lighter Abroad Ship)
It must be noted that LASH vessels are
expensive, and furthermore it is necessary to
check on the availability of the special
handling facilities necessary in the ports of
 Piggyback
-This is a system of unitised
multimodal land
transportation, a
combination of transport by
road and rail.
- Combines the speed and
reliability of rail on long
hauls with the door-to-door
flexibility of road transport
for collection and delivery.
 Piggyback
- The goods are packed in trailers and hauled by
tractors to the railway station. At the station,
the trailers are moved onto railway flat cars
and the transport tractors, which stay behind,
are then disconnected. At destination, tractors
again haul the trailers to the warehouses of
the consignee.
 Sea train
- Involving the use of rail and ocean transport
- Geographically separated rail systems can be connected by
the use of an ocean carrier. Typically these vessels are long
and thin and consist of one main deck running the length of
the ship. They are quicker at loading trains than general
cargo vessels since the train’s carriages do not need to be
detached from one another.
-.
 Conclusion
• In actual practice, several other combination
modes may be used depending upon the trade
routes, trans-shipment points and the
availability, of different modes of transport.
II. MULTIMODAL TRANSPORT OPERATOR
UNCTAD/ICC Rules for Multimodal Transport
Documents:
Multimodal transport operator (MTO) means any
person who concludes a multimodal transport
contract and assumes responsibility for the
performance thereof as a carrier.
Carrier means the person who actually performs or
undertakes to perform the carriage, or part
thereof, whether he is identical with the
multimodal transport operator or not.
II. MULTIMODAL TRANSPORT OPERATOR

United Nations Convention on International Multimodal

Transport of Goods (Geneva, 24 May 1980)

"Multimodal transport operator" means 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
🡪actual or contracting carrier
 Types of MTO
Vessel Operating MTOs (VO-MTOs) MTO that owns the vessel
Non-Vessel Operating MTOs (NVO-MTOs) maybe freight
fwd, custom
brokers,
warehouse
Tại sao chia thành 2 loại này? - vessel mode rất quan trọng
Vessel Operating MTOs (VO-MTOs)
- Mainly because of containerization many
shipowners have now extended their to services
to also include carriage over land and even
carriage by air.
- They used not to own or operate the transport of
goods by road, rail or air but arrange for these
types of transport by sub-contracting.
- They would usually sub-contract inland
stevedoring and warehouse services.
 Non-Vessel Operating MTOs
(NVO-MTOs)
"Non-Vessel Operating MTOs“
"Non-Vessel Operating Common Carriers" (NVOCCs).
🡪Other transport operators (than ocean carriers) sub-contract the
ocean voyage.
+ MTO owns only one type of transport means e.g. trucks or in rarer
case, airplanes and railways.
+ Those who do not own any means of transport may include
• Freight Forwarders
• Customs Brokers
• Warehouse Operator
• Stevedoring Companies
-->
Subcontract for all modes of transport
 III. INTERNATIONAL CONVENTIONS
APPLICABLE TO MULTIMODAL TRANSPORT
• United Nations Convention on International
Multimodal Transport of Goods (Geneva, 24
May 1980)
• UNCTAD/ICC Rules for Multimodal Transport
Documents
United Nations Convention on International
Multimodal Transport of Goods
• Not enough ratifications to enter in force
• Liability of MTO
Network system: Liability is determined by
reference to the the international conventions /
national laws applicable to the unimodal stage of
transport where damaged incurred
Uniform system: same liability regime is applied to
entire multimodal transport, irrespective of the
stage at which damage incurred
United Nations Convention on International
Multimodal Transport of Goods
nhớ học kĩ mấy cái liability này
• Period of Responsibility: from the time the MTO has taken
the goods in his charge to the time of their delivery.
• Basis of Liability:
Loss
Damage
Delay
🡪Presumed Fault Principle: MTO is automatically reliable
for loss, damage or delay unless MTO proves that he or
his servants…took all measures that could reasonably
be required to avoid the occurance and its
consequences
🡪what carriers should do?
United Nations Convention on International
Multimodal Transport of Goods
• Limitation of Liability:
If include sea/inland waterways: 920 units of account
per package or 2.75 units of account per kilogram of
gross weight of the goods whichever is the higher.
If not: 8.33 units of account per kilogram of gross
weight
Delay: an amount equivalent 2.5 times the freight
payable for the goods delayed, but not exceeding the
total freight payable under the multimodal transport
contract.
United Nations Convention on International
Multimodal Transport of Goods
• Notice of loss, damage or delay
Apparent loss, damage: the working days after
delivery date
Not Apparent loss, damage: within six consecutive
days after the
Delay: within 60 consecutive days after delivery
date
• Time – barred: 6 months from delivery date
 UNCTAD/ICC Rules for Multimodal
Transport Documents
• Enter in force on 01 Jan 1992
• Do not have the force of law but are of pure
contractual nature
• Only applicable if they are incorporated into
carriage contract
 UNCTAD/ICC Rules for Multimodal
Transport Documents
• Period of responsibility: from the time the MTO has
taken the goods in his charge to the time of their delivery.
• Basis of responsibility
Loss
Damage
Delay: when the goods have not been delivered within the
time expressly agreed upon or, in the absence of such
agreement, within the time which it would be reasonable
to require of a diligent MTO
Conversion of delay into final loss: 90 days
🡪Presumed Fault Principle:
 UNCTAD/ICC Rules for Multimodal
Transport Documents
Exemptions: (for voyage include sea/inland
waterways)
• Nautical Fault
• Fire
 UNCTAD/ICC Rules for Multimodal
Transport Documents
• Limitation of Liability:
Include sea/inland waterways: 666.67 SDR per
package or unit or 2 SDR per kg of gross weight of
the goods lost or damaged, whichever is the
higher.
Not include: 8.33 SDR per kilogramme of gross
weight of the goods lost or damaged.
 UNCTAD/ICC Rules for Multimodal
Transport Documents
• Notice of loss of or damage to the goods
– Apparent: not clear
– Not apparent: 6 consecutive days after delivery
date
• Time – bar: 9 months
 IV. MULTIMODAL TRANSPORT
DOCUMENTATION
• FIATA Negotiable Multimodal Transport Bill of
Lading (FBL)
• Combined Transport Document – COMBIDOC