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As many of you know, global freight movement is handled by a several modes of transport. Goods routinely move across roads, rail networks, ports, and airports before reaching their final destination. To manage this complexity, many businesses rely on multimodal transportation.
What is Multimodal Transportation?
If you work in logistics, you might have heard of intermodal transport and multimodal transport.
Both intermodal and multimodal transport combine different transportation modes, from rail transport to maritime transport, to get cargo from a warehouse to its final destination.
However, intermodal transport uses different carriers for each leg of the journey, thus requiring separate contracts. Multimodal shipping (or combined transport) refers to the transportation of goods under a single contract.
Multimodal transport is designed to support the efficient movement of freight across vast distances, reduce complexity, and improve cost efficiency across the supply chain.
This approach is widely used in international shipping, global operations, and industries such as retail, manufacturing, and the automotive industry, where freight must move reliably across global supply chains.
Key use cases for multimodal transport include businesses involved in international trade, urban logistics, retail distribution, and the automotive industry.
Mode of Transportation
Road Transportation
Road transport plays a critical role in multimodal transport systems, particularly for last mile delivery and door-to-door services.
Road freight is commonly used for smaller shipments, urgent deliveries, and as the first and final leg of cargo transportation. It connects warehouses, rail terminals, ports, and airports.
Road transport is especially important for perishable goods and medical supplies, where flexible routing and fast response times support timely delivery.
Rail Transportation
Rail transportation is a cost-effective solution for long distance shipments and bulk shipments.
Rail freight supports the movement of bulk goods, containers, and full truckload equivalents across regions with lower fuel costs than road transport.
In both intermodal and multimodal transport, rail transport is frequently combined with road and sea to optimise routes and reduce congestion.
Maritime Transportation
Maritime transport is a key driver behind global trade.
Sea freight uses cargo ships to move large volumes of goods across oceans and is ideal for full container load, shared container space, and bulk freight shipping.
Multimodal shipping often relies on maritime transport for international legs, with road and rail handling inland movements.
Benefits of Multimodal Transportation
Cost Efficiency
Multimodal transport improves cost effectiveness by selecting the best mode of transport for each leg of the journey.
By combining different transportation modes, businesses can reduce fuel use, optimize capacity such as truck space, and save costs without sacrificing reliability.
This makes multimodal transport systems attractive across the logistics industry.
Increased Efficiency and Customer Service
Multimodal logistics improves shipment coordination and shipment tracking across the entire journey.
Centralized visibility enables faster responses to delays and supports efficient transport planning.
Improved visibility also leads to better customer communication and more consistent freight transport outcomes.
Drawbacks of Multimodal Transport
Shippers can’t control costs
When using a single carrier, you’re unable to take advantage of the lowest rates and deals offered at each leg of the journey.
When working with an agent, these discounts can end up being swallowed by middleman fees. For smaller or less frequent loads, this can result in higher costs.
On the other hand, intermodal transport involves different modes of transport. This can be more cost-effective as you get more service options and flexible pricing.
Less specialized equipment and services
A particular disadvantage for fragile cargo, multimodal transportation (particularly services that use a single, very large carrier) can sacrifice specialization for a more wide ranging solution. Therefore, the expertise offered by smaller and more specialized carriers can sometimes be preferable.
Lower capacity control during surge times
Larger carriers often receive larger surges and lulls in business over the year, such as in busy periods like the Christmas holidays. This can put your cargo at higher risk of delays in surge times.
Freight Services
Freight services play a central role in multimodal transport.
Freight forwarders manage freight shipping, documentation, and coordination across various modes, often including customs clearance.
In many cases, brokers connect shippers with carriers and logistics providers, supporting pricing, capacity planning, and compliance.
Intermodal Freight and Full Truckload
Intermodal freight often includes full truckload or container load movements.
A full container load or dedicated truck reduces handling and improves transit reliability for bulk or high-priority shipments.
This approach is commonly used for long distance shipments and high-volume freight.
Air Freight and Freight Forwarding
Air freight is used when speed matters.
It supports urgent deliveries and high-value freight where shorter transit times justify higher costs.
Freight forwarding services coordinate air freight with road and sea transport to maintain continuity across the multimodal system.
How Transvirtual Supports Multimodal Transportation
Running a multimodal operation without system visibility creates gaps in control, tracking, and accountability.
Transvirtual supports multimodal transport systems by giving logistics providers one platform to manage freight transport across road, rail, air, and sea.
With Transvirtual, logistics providers can:
Manage multiple modes of transport in one system
Track freight across different transport modes without data gaps
Support freight forwarding, carrier coordination, and documentation
Improve timely delivery while controlling shipping costs
This allows logistics companies to run multimodal transport as a scalable, controlled logistics strategy rather than a fragmented process.
Frequently Asked Questions
Multimodal transportation uses multiple modes of transport under a single contract, managed by one operator, to move goods to their final destination.
Intermodal transport uses a single, standardised cargo unit (such as a container) across different transport modes but requires separate contracts and operators for each leg. Multimodal transport uses one contract and one multimodal transport operator (MTO), and the cargo unit can change during the journey.
Intermodal transport suits businesses that want pricing flexibility and control over individual segments. Multimodal transport suits businesses that prioritise simplicity, reduced administration, and single-point accountability.
