1. Prof. Ashok Advani - Jaipuria Institute of Management, Noida
Multimodal Transport
Prof. Ashok Advani - Jaipuria Institute of Management, Noida

2. Multimodal Transport Evolution of Multimodal Transport
Prof. Ashok Advani - Jaipuria Institute of Management, Noida

3. Multimodal Transport - Evolution
Segmented Transport
Pre-containerization era
Different modes of transport
Separate contracts
Road Transportation
Sea Transportation
Loading in Port
Insurance
Discharge at destination
Transportation to Importer’s Warehouse
Prof. Ashok Advani - Jaipuria Institute of Management, Noida

4. Multimodal Transport - Evolution
Segmented Transport
Implications
Presence of trading parties at all stages
Difficulty in determination of all costs
Poor co-ordination - transport
Poor co-ordination - documentation
Difficulty in cargo claims settlement
Complexity of business
Prof. Ashok Advani - Jaipuria Institute of Management, Noida

5. Multimodal Transport - Evolution
Transport Logistics
Ship Owners – Cargo Owners
Responsibility – Loading to Discharge
Ship’s rail taken as datum
Marks & numbers
Cargo condition
Appropriate clauses in B/L
Prof. Ashok Advani - Jaipuria Institute of Management, Noida

6. Multimodal Transport - Evolution
Transport Logistics
Containerization
Ships rail no longer a datum
Datum point moved inland
Container as cargo unit
New terms to establish responsibilities Buyer & Seller
Prof. Ashok Advani - Jaipuria Institute of Management, Noida

7. Multimodal Transport - Evolution
Transport Logistics
Implications
Legal implications between buyer & seller re-established
Negotiable transport documents
MTC evidences taking charge of goods & undertakes delivery as
per terms of contract
Introduction of INCO terms
Prof. Ashok Advani - Jaipuria Institute of Management, Noida

8. Multimodal Transport Definition – Multimodal Transport
“The carriage of goods by at least two different modes 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.”
One transport document, one rate and through liability are used
Prof. Ashok Advani - Jaipuria Institute of Management, Noida

9. Prof. Ashok Advani - Jaipuria Institute of Management, Noida
Multimodal Transport
Definition – MTO
“A 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 the carriers participating in the multimodal transport operations and who assumes responsibility for the performance of the contract.”
Prof. Ashok Advani - Jaipuria Institute of Management, Noida

10. Prof. Ashok Advani - Jaipuria Institute of Management, Noida
Multimodal Transport
Definition – MTC
“A contract whereby a multimodal transport operator undertakes, against payment of freight, to perform, or to procure the performance of international multimodal transport.”
Prof. Ashok Advani - Jaipuria Institute of Management, Noida

11. Prof. Ashok Advani - Jaipuria Institute of Management, Noida
Multimodal Transport
Definition – MTD
“It is the evidence of multimodal transport contract, which means taking the charge of the goods by the multimodal transport operator and undertaking by him to deliver the goods in accordance with the terms of the contract.”
Prof. Ashok Advani - Jaipuria Institute of Management, Noida

12. Multimodal Transport Unimodal – Intermodal - Multimodal
Prof. Ashok Advani - Jaipuria Institute of Management, Noida

13. Prof. Ashok Advani - Jaipuria Institute of Management, Noida
Multimodal Transport
Unimodal Transport
Single mode of Transport
Each carrier issues own transport document
Bill of Lading
Airway Bill
Consignment Note
Example:
Ocean transport combining move by two vessels basis trans-shipment
Through Bill of Lading
Responsibility may vary
Prof. Ashok Advani - Jaipuria Institute of Management, Noida

14. Prof. Ashok Advani - Jaipuria Institute of Management, Noida
Multimodal Transport
Prof. Ashok Advani - Jaipuria Institute of Management, Noida

15. Multimodal Transport Intermodal
It is the movement of cargo from origin to destination by several
modes of transport
Each of the modes have a different transport provider or entity
responsible
Each contract is independent
Multiple carriers during a single journey
Differentiation lies in the contract and responsibility of the movement
Prof. Ashok Advani - Jaipuria Institute of Management, Noida

16. Multimodal Transport Intermodal Example
ICD TKD – Bhiwadi – ICD TKD – Nhava Sheva – Durban – Pretoria
Operation an Intermodal operation as involves several contracts
Between Seller or Buyer and Transport service provider for road movement from ICD TKD to Bhiwadi (empty) & Bhiwadi to ICD TKD (loaded)
Between Seller or Buyer and Carrier for sea movement from Nhava Sheva to Durban
Between Seller or Buyer and Transport service provider(s) for rail/road movement from Durban to Pretoria
Prof. Ashok Advani - Jaipuria Institute of Management, Noida

17. Multimodal Transport Intermodal Example
ICD TKD – Bhiwadi – ICD TKD – Nhava Sheva – Durban – Pretoria
Operation an Intermodal operation as involves several contracts
The costs/risks for such contracts will of course depend on the Incoterms® used for this trade
The carrier issues a port to port Bill of Lading
Prof. Ashok Advani - Jaipuria Institute of Management, Noida

18. Prof. Ashok Advani - Jaipuria Institute of Management, Noida
Multimodal Transport
Intermodal Transport
Several modes of Transport
One or several transport documents
Issuing carrier may not take responsibility for entire transport
Ocean carrier may issue “Combined Transport Bill of Lading”
First carrier responsible for his part of transportation
As Agent – subsequent modes
Prof. Ashok Advani - Jaipuria Institute of Management, Noida

19. Multimodal Transport
Prof. Ashok Advani - Jaipuria Institute of Management, Noida

20. Multimodal Transport Multimodal
It is the movement of cargo from origin to destination by several
modes of transport
Each of these modes have a different transport provider or entity
responsible
Governed under a single contract
Single carrier during a single journey
Differentiation lies in the contract and responsibility of the movement
Prof. Ashok Advani - Jaipuria Institute of Management, Noida

21. Multimodal Transport Multimodal Example
ICD TKD – Bhiwadi – ICD TKD – Nhava Sheva – Durban – Pretoria
Operation a Multimodal operation as involves single contract
Here, neither the seller nor the buyer are arranging any contracts other than their contract of carriage with the carrier
The costs/risks for such contracts will of course depend on the Incoterms® used for this trade
In this case, the carrier issues a Combined Transport Bill of Lading or a Multimodal Bill of Lading
Prof. Ashok Advani - Jaipuria Institute of Management, Noida

22. Multimodal Transport
Prof. Ashok Advani - Jaipuria Institute of Management, Noida

23. Multimodal Transport Aim-Multimodal Transport Efficiency
Faster Transits
Reduced Costs
Competitiveness for Exports
Reduced Import costs
Savings in Foreign Exchange
Co-ordination-different modes
Co-ordination-documentation
Prof. Ashok Advani - Jaipuria Institute of Management, Noida

24. Multimodal Transport Multimodal Transport Freight Structure
Prof. Ashok Advani - Jaipuria Institute of Management, Noida

25. Multimodal Transport Multimodal Transport Freight Structure
Containerized cargo
Origin – hinterlands
Road / Rail to Port
Road preferred option
No transit guarantees given by rail
No dedicated rail tracks for freight movement
Prof. Ashok Advani - Jaipuria Institute of Management, Noida

26. Multimodal Transport Multimodal Transport Freight Structure
Ocean Freight
Inland Freight
Factory stuffed / ICD stuffed / Port stuffed
USA – Shipping Line owns or leases trucking services
Inland Freight – Interstate Commerce Commission
Prof. Ashok Advani - Jaipuria Institute of Management, Noida

27. Multimodal Transport Multimodal Transport Freight Structure
Inland Freight structure
Rail vs. Road
Road transport
Container size
Cargo weight
Nature of cargo
Distance
Border crossings
Octroi posts
Prof. Ashok Advani - Jaipuria Institute of Management, Noida

28. Prof. Ashok Advani - Jaipuria Institute of Management, Noida