Understanding Multimodal Shipping and Its Benefits

Shipping products from the continental US to overseas destinations presents a significant challenge for businesses. Managing multiple transportation modes, non-standard paperwork, and coordinating with various carriers can overwhelm even experienced shippers. There are tons of moving parts, non-standard paperwork, and lots of other companies involved in helping move your freight.

These shipments that require several modes of transportation are referred to as multimodal shipping. Now, while multimodal shipping is performed regionally often, the platform is utilized mainly for moving freight long distance. More often than not, these are shipments that are going overseas to international destinations.

When you're facing your first international shipment, how do you manage all these moving parts? The good news is it's not as complicated as you might think.

In this blog post, you'll learn about multimodal shipping and the top 3 ways it can benefit your shipping operations. So, if you are ready to get that international freight off the floor, read on and let us put your mind at ease!

Understanding Multimodal Transportation

Multimodal shipping is the movement of goods using more than one different mode of transportation under an individual contract.

Generally speaking, there are four different shipping modes:

• Air
• Ground
• Sea
• Rail

Under most situations, you would simply hire a multimodal carrier, also known as a multimodal transport operator (MTO). The MTO then hires other subcontractors to help them move the shipment overseas.

Each of these subcontractors specializes in one or more types of shipping modes. With the help of these subcontractors, your multimodal carrier can efficiently move the freight through his network of available shipping modes and on to the final destination.

Many shippers all across the globe depend on multimodal transport to move their goods daily. Multimodal shipping is an exceptional solution for companies who ship large-volume orders to multiple customers on a frequent basis and it provides multiple benefits, as demonstrated in our case studies.

Here are the key benefits you should know about.

Saving Money

The leading benefit of shipping multimodal is that it can save you a ton of money if performed properly. Across the board, the multimodal mode generally offers cheaper shipping rates and reduced cargo insurance pricing.

Improved Communication

Multimodal shipping involves communication between multiple parties in order to keep things running smoothly. The good news is that while the carrier will utilize sub-contracted carriers in each mode, you'll communicate directly with the primary carrier. There is no need to worry about endless emails with subcontractors, and no day-long phone calls trying to resolve issues. If you run into a problem, just drop a phone call to your contractor and let them handle it.

This mode of transportation, while containing many moving parts, is fairly streamlined. So long as you find a reputable and trusted global logistics partner to handle the subcontractors, you are good to go!

Faster Transit

New regulations, like the ELD mandate and others, restrict the amount of time that a truck driver can move shipments. This rule applies to both LTL and FTL shipments alike.

As such, cross-continental shipments move much quicker through multiple modes. Where one shift ends, another has just started.

Frequently Asked Questions

What is the difference between multimodal and intermodal shipping?

In multimodal shipping, you work with a single carrier who manages the entire journey under one contract, even if they use subcontractors. In intermodal shipping, you contract separately with each carrier for each leg of the journey.

How long does multimodal shipping typically take?

Transit times vary depending on the distance, modes used, and route. Your multimodal transport operator can provide specific estimates based on your shipment's origin and destination.

Do I need special documentation for multimodal shipping?

Yes, international multimodal shipments require specific documentation including bills of lading, customs forms, and commercial invoices. Your carrier or 3PL can help you navigate these global trade requirements.

Final Thoughts

Most shippers who utilize Multimodal transport choose to work with experienced third-party logistics companies that offer freight management services. A reputable 3PL will help to ensure that you can navigate all those hurdles that we had mentioned at the beginning of this article.

Furthermore, a well-rounded 3PL can manage your complete multimodal shipping operation. From communicating with the carrier and subcontractors to negotiating better rates, a 3PL company is of huge benefit. Certainly, it is better than attempting to do so on your own.

If you have shipments that require multiple modes of transportation, or any questions about multimodal or intermodal shipping, give us a call today! Let Redwood get your freight across oceans, rails, and over air!