Businesses are increasingly faced with the need for fast, reliable, and cost-effective delivery of goods over long distances. This issue is especially important for small and medium-sized enterprises that import or export their products. Traditional delivery methods using a single type of transport are not always the most effective. To ensure full route coverage, companies are switching to combined logistics using multimodal and intermodal transportation. Both methods involve the use of different modes of transport, but they differ significantly in the organization of the process, the distribution of responsibilities, and documentation.

What is multimodal transportation?

Multimodal transportation is a type of delivery that involves the sequential use of at least two modes of transport (sea, rail, automobile, or aviation) under the control of a single logistics operator. The main advantage of this approach is a single contract for the entire delivery, regardless of the number of transport stages. The logistics company assumes full responsibility for the safety of the cargo, compliance with deadlines, transshipment at the docks, and, if necessary, customs clearance. This greatly simplifies the process for the customer. Businesses do not need to coordinate the work of multiple carriers, synchronize schedules, or ensure interaction between different modes of transportation. All issues are resolved through one contractor who is responsible for the result.

Let’s look at an example. Your cargo is stored at a warehouse in Kyiv, for instance, a batch of electronics that needs to be delivered to a partner in Mexico. Duke Active picks up the shipment by truck and transports it to a logistics hub in Odesa. At the port, the cargo undergoes customs clearance and is loaded into a container on a vessel bound for Mexico via the Mediterranean Sea and the Atlantic Ocean. Upon arrival at the Mexican port, the goods are once again transferred to a truck and delivered directly to the customer’s warehouse. This entire route (truck + sea + truck) is handled under a single contract and coordinated by one team. Such routes are not only convenient; they’re essential for small and medium-sized businesses looking to enter new markets without unnecessary risks or delays.

What is multimodal transportation?

Intermodal transportation is also a delivery that combines several modes of transport, but it is implemented organizationally differently. In this case, each stage of the route is performed by a separate carrier, with which its contract is concluded. For example, sea transportation is carried out through one operator, rail transportation through another, and road delivery through a third.

This approach may be attractive for companies that have their own logistics experience or prefer independent control. It provides greater freedom in choosing carriers, the ability to negotiate with each individual, and optimize fares. However, at the same time, this increases the amount of administrative work, requires coordination of connections, paperwork at each stage, and independent resolution of disputes.

A special difficulty of the intermodal model is distributed responsibility. In case of damage or delay of the cargo, it is necessary to find out at what stage exactly the problem occurred and who is responsible for it. This complicates the claim work and requires the preservation of a significant amount of documentation. For small businesses, this can lead to unexpected costs of time, money, and resources.

Advantages of multimodal transportation

For small and medium-sized businesses seeking to focus on the development of their core business rather than wasting resources on logistical chores, multimodal transportation offers a significant number of advantages. This is not only the convenience and predictability of the process, but also cost optimization, risk reduction, and increased competitiveness. Let’s look at the key advantages in more detail.

Cost reduction

One of the main reasons why businesses are switching to multimodal logistics solutions is to save money. When all stages of delivery are coordinated by a single operator, operational costs associated with approvals, delays in docking, and duplication of procedures are reduced. In addition, a logistics company can optimize routes by choosing the most advantageous transport combinations, for example, choosing sea transportation instead of Air, if time permits. It is also worth considering the economies of scale: an operator working with large volumes of cargo has the best tariffs on sea and railway lines, provides access to consolidated shipments, and, in some cases, to warehouse hubs. This is especially beneficial for small businesses that cannot independently ensure the full loading of a container or wagon.

Speeding up delivery

Due to the unified coordination of the process, the time for information transfer, paperwork, and coordination of details between different companies is reduced. When one operator controls all the stages, he plans the docking of vehicles and minimizes downtime. For example, vehicles can wait for a ship or train to arrive at a port without wasting time negotiating terms with a third party. This allows for continuous movement of cargo, avoiding delays associated with queues, lack of transport, or inconsistent schedules. For companies that work with goods with a short shelf life or need rapid inventory rotation, this can be a crucial factor.

Flexibility of routes and variability of logistics

Multimodal logistics is primarily about adaptability. Thanks to the ability to combine different modes of transport, the operator can set a route even in cases where there is no direct connection between points. If flights are temporarily unavailable, part of the route can be traveled by sea, and then by rail or car. If one of the corridors is overloaded, it is possible to choose an alternative one. This ensures that supply chains are resilient to external factors such as strikes, customs restrictions, weather conditions, or port congestion. This flexibility is especially valuable for companies that supply products to several countries or regions with different infrastructure features.

Single contract and document management simplification

Combined transportation is executed by one contract. This means not only fewer signatures and approvals, but also less risk of errors, document losses, and data duplication. The accounting department does not need to process dozens of acts, invoices, and invoices from different suppliers. All logistics are in one package of documents, which greatly facilitates internal control and audit. This is especially important for small businesses because it reduces administrative costs and frees up team time for key tasks.

Centralized responsibility and security guarantees

One of the most important factors when choosing a logistics partner is a clear understanding of who is responsible in case of delay, damage, or loss of cargo. In the multimodal model, responsibility is focused on one operator. This simplifies the procedure for filing claims and provides greater protection for the client. Most providers insure cargo automatically or offer favorable insurance conditions as part of a package of services. This reduces financial risks and avoids complex disputes between multiple carriers, as is the case in the intermodal model.

Full control and transparency at all stages

Another key advantage is the complete visibility of the delivery process. The Customer can receive up-to-date information about the cargo’s location, arrival time, and current storage conditions at any time. Thanks to integrated IT tracking systems, reports and messages are received automatically, which allows you to quickly respond to changes and avoid unexpected delays. In addition, logistics company managers usually accompany the client 24/7, which improves the quality of service and creates long-term trust.

Types of transport used

Multimodal logistics is based on a combination of the main modes of transport, depending on the distance, availability of infrastructure, timing, and type of cargo. Below is a table with key characteristics:

Conclusion

Multimodal and intermodal transportation are two effective tools for creating flexible and economically sound logistics. If your company wants to delegate the entire delivery organization to professionals, avoid bureaucracy, reduce costs, and maintain full control over the process, choose multimodal transportation. If complete freedom in choosing carriers is important or you work in special regions with non-standard requirements, the intermodal model may be more relevant.

Duke Active specializes in multimodal logistics for small and medium-sized businesses. We help to build efficient routes across Europe, Asia, and Ukraine using sea, rail, road, and air transport. All issues, from paperwork to delivery to the warehouse, are handled by our team. Leave a request on the website or contact the manager to receive an individual cost calculation and transportation plan.