STC-Transport Management Intermodal Multimodal

Transport management
Intermodal & multimodal transport

Modalities, Incoterms and documents
Member of the STC GROUP

• Introduction & questions
o World trade
o Forms of cargo, packaging and transport units
o Questions
• Transport Modalities
o Air, rail, road, sea / inland waterways and pipeline
• Transport Modalities Comparison
o Capacity, service and costs comparison
• Transport Combinations
o Intermodal, multimodal and transmodal
• Agreements
o Incoterms and documents
• Information
o Websites (UNCTAD, ICC, FIATA, Transport geography, supplychain247
o YouTube and PDFs
Member of the STC GROUP
2
Learning objectives:
Understanding:
• Trade and live examples
• The components of transportation
• The characteristics of different transport modalities
• The differences in capacity, service level, costs and emissions
• The impact between transport mode
• The concepts of the different transport combinations
• The differences between the transport combinations
• Incoterms
• Transport documents
• Cost components
3
Introduction
Netherlands, famous for......

• Flower export but also.....
• Flower import.
• Main routes……???
Take a few minutes to think and discuss

Introduction
Netherlands, famous for flower export and import

• Export to
o Europe / ME / US
• Import from
o Africa, Asia and South America
• Main routes export:
o Truck
o Truck and ferry
o Truck and train
o Truck and plane
• Main routes import:
o Aircraft and truck
o Container (ship) and truck
Introduction
Eurotunnel / channeltunnel
Introduction
Challenges:
Export
- Capacity
- Truck and driver
- Booking on ferry
- Tunnel without reservation
- Clearance (Dover / seaport)
- Delivery windows
- Temperature 4°-10° (watertemp)
- PoD
Introduction
Challenges:
Import
-on time for
- unloading
- checking
- unpacking
- QC
- sorting (bunches / bouquets)
- QC
- packing
- labeling
- loading
Introduction
More challenges:
Insurance
• The insured value per kg is different for road transport than for shipping
o General coverage SDR 2/kg
o National road transport SDR 3.4/kg
o International road transport SDR 8.33/kg
Cases:
1. A truck with flowers is on a ferry to the UK.
a) The exportcompany has a contract with the trucking company
b) The ship capsisez. What amount is covered?
2. The value of the cargo is SDR 25/kg.
a) What steps can the carrier take?
3. The cargo is delivered at the wrong temperature.
a) The cargo is rejected? Who’s fault is it?
b) The receiver claims loss in revenue. What’s next?
Introduction
World Economy, Trade, Carriage & Transport

• Main routes……..
Introduction
World economy & transport

Some essentials and some expressions……
• Transport is the backbone of world trade and the circulation of our society
• Essential investments take place in transport modes, ports and infrastructure (also)
to and from the hinterland
• Transport is a worldwide (intermodal) activity
• Goods in the right size are shipped at the right time and destination all over the
world
• Shipping by sea is essential and the cheapest mode of transport

Introduction
Transport
Transport is more than carriage alone
19th century – the industrial revolution from sail to steam

20th century – many new developments due to 1st and 2nd World War
After the second World War recovery due to the Marshall plan
After 1950 - Enormous growth in world trade
Transport by sea covers about 90% of world trade

Introduction to world trade and transportation
Introduction
WTO
The World Trade Organization is the driver to ensure trade between countries
has no barriers world wide.
• More than 350 million containers are circling the globe
• 50.000 ships ensure that cargo is

• shipped around the globe
• Import duties have dropped

• to less than 5 %
Introduction
Forms of cargo / packaging

Packing of goods, has to meet the following standards:
• It reduces the risk of damage during transport
• It protects the environment against harmful effects of products such as
o toxic,
o aggressive and/or
o flammable substances
Seaworthy packing is:

• Stackable, shock resistant and impact resistant
• Resistant to outside influences such as moisture or temperature.
Introduction
Forms of cargo / packaging

The standards for packing are registered in:
• The conditions of the insurance contract & clauses of the transport document
• The IMDG Code provisions if it concerns a transport of dangerous substances.
The way of packing affects:

• The shipping conditions,
• The transport price and
• The loading costs
• The discharge costs.
Introduction
Forms of cargo / general cargo

The three categories of general cargo:
General goods
• Palletized goods
Neo bulk
• Bundles of steel
• Bundles wood
Specific goods
• Ships
• Cranes
• Big machinery
Introduction
Forms of cargo / transport units

A transport unit is a collection of goods composed in such a way that it can be
transported as one standardized unit (storage, carriage and transshipment).
The most common types of transport units:
o Pallet
o Container
o Trolley
Transport Modalities
Rodrigue, J-P. (2013) The Geography of Transport Systems, Hofstra University, Department of Global Studies & Geography, available
from: http://people.hofstra.edu/geotrans
18
Transport modalities
Air transport
• Air transport is the fastest mode of transport
• The quantity of goods transported by air is still relatively small compared to the
carriage by sea (3% in volume / 30% in value)
• Vulnerable / perishable goods are moved this way.
• Special intermodal transport
o For instance from Asia to the Middle East by sea and thereafter by air to Europe.
Transport document:
• Airway bill
Air transport
Characteristics of air transport
• Routes
o Mainly intercontinental, to utilise speed advantage
o Short distances are trucked, under air cargo conditions
• Requirements
o Main port with extensive destinations / connections
o Efficient + fast airport handling facilities
o Air cargo forwarder with fast declaration possibilities
o Fast connecting road collection / distribution services
• Cargo
o Urgent shipments & high value cargo
o Perishable (flowers, fruit and vegetables)
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Air transport
Pros and cons of air transport

• Advantages • Disadvantages
o The fastest shipping method o Very costly
o Freight can be send anywhere o Only small consignments
o High level of security o Large investments needed
o Less need for warehousing o Unsuitable for low value
o No physical barriers freight
o Environmental unfriendly
21
Transport modalities (Tesla movie)
Road transport (trucking in container industry)

• Used frequently
• Natural penetration power is large
• High fuel consumption is a disadvantage
• Congestion makes delivery times hard to predict
Transport documents in road transport are different from continent

to continent:
• In Europe - CMR (for cross border traffic)
Road transport (services)
• Transport of refrigerated cargo
o Control of temperature and humidity. Requirements:
 Vehicles must be in good condition
 No daylight must be seen inside when doors closed
• Chartering
o The road charterer carries out for their clients road transport operations
that they entrust to third party carriers. Reasons to chose for chartering:
 Diverse and widespread geographical coverage
 Irregularity of goods flow: seasonal nature, various sized shipments, emergency
shipments and not be able to have a FTL (Full Truck Load)
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Road transport
Road transport services
• Groupage
o The number of clients is high in a given area
o The goods are small in size
o There is a large number of goods
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Road transport
Distribution centres
• Trans loading
• Cross-docking
• Warehousing
Rodrigue, J-P & Hatch A. (2009) ‘North American Intermodal Transportation: Infrastructure, Capital and Financing Issues’, The
Equipment Leasing and Finance Foundation’, Washington, DC.
25
Road
Pros and cons of road transport
• Advantages
• Disadvantages
o Door-to-door
o Arrival may vary
o Flexible
o Using of public roads
o Flexible prices & negotiation
o Border crossing time consuming
o Lower prices than air and rail
o Convoys for security of cargo
o Good for small consignments
o Not appropriate for big loads
o Good for limited distance
o Valuable cargo, special conditions
o Low cost per cargo (not bulky)
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Maritime transport
Carriage of goods by sea
• A very cheap mode of transport, low speed
• Shipping contributed to an increase in world trade and globalisation
Transport documents used for carriage by sea

• Bill of Lading
• Charter Party
Maritime transport services
• Liner shipping • Tramp shipping
o Regular service o Incidental service
o Fixed routes o Cargo determines route
o Fixed time schedules o Special cargo, liquid and dry
o General cargo and containers bulk
o Independent lines o Ship-owners, charterers
o Agents book capacity
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Maritime transport
Port and terminals in maritime transport
• Container sea terminal
• Intermediate hub
• Barge terminal
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Pros and cons of maritime transport
• Advantages
o High capacity
• Disadvantages
o Environmental friendly
o Long transport times (slow)
o Low costs per ton-km
o Limited area of operations
o Participation international
o Requires specially equipped
trade
ports
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Inland shipping (movie Portliner & Heineken/Alpherium)

• Done in many parts of the world like: North and South America, Africa, Asia and
Europe.
• Europe has the Rhine river where big quantities are carried by Inland shipping to the
hinterland, such as:
• Belgium, France, Germany and Switzerland
Inland Shipping Transport documents is either:

• Inland Shipping Bill of Lading
• Charter Party
Transport Modes
IWT, inland waterway transport
Classification of inland waterway transport
• Artificial constraints
• Natural constraints
33
Pros and cons of inland shipping
• Advantages • Disadvantages
o High capacity o Water level impact
o Bridges too low
o Environmental friendly
o River not deep enough
o Low costs per ton-km
o Limited area of operations
o Low energy consumption
o Requires another mode of
transport for last mile
o Requires special equipped hubs
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Rail transport
• Rail transport is the least used mode of transport.
• USA and Europe give attention due to its environmental advantages.
• 600m shuttle trains in the transport between ports and inland terminals
• Ore, coal, grain and containers are railed.
• Silk route; overland from China to Europe (Khorgos movie)
Rail transport documents are:

• C.I.M. (used most commonly)
Rail transport
Classification rail transport
• Track gauge
• Loading gauge
o (maximum width and height of wagon and cargo)
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Rail transport
• Rail terminals
o Transmodal
o Inland terminal
o Satellite terminal
37
Advantages of rail transport
• Increased security of cargo
• Can transport large and heavy volumes
• Can transport over long distance
• Efficient operations multimodal transport
• Faster on some routes (compared to sea)
• Environmental friendly way of transport
• Reliability of operations (in most cases)
• Effectiveness when regular consignments
• Cheap in longer distance (>200 km)
38
Disadvantages of rail transport
• Interoperability problems
• Relatively low network density
• Variations in technical and operational characteristics
• Severe delays (sometimes) at borders
• No single agent for door-to-door transport
• Intervention of several rail operators
• Necessity of two intermediate handlings
• Expensive for short distances
• Limitations to standardized units
39
Pipeline
• The most environmental friendly mode of transport is the pipeline.
• Big quantities are moved from the petro chemical industry to the hinterland, and
from the desert to the refineries
• Kerosene, Aircraft fuel is directly pumped to airports
• Natural Gas is distributed by an extensive pipeline network.
• All over the world
• NO paperwork
Transport Modes
Questions:
• For each transport mode as discussed, explain
o For which commodity is each transport mode suitable?
o What are the characteristics
o The advantages and disadvantages
• When transporting grain from a point of origin to a port
o Which transport mode(s) would you use and why?
• When transporting flowers from one Africa to Europe
• When transporting electronics from a factory (Asia) to a consumer (USA)
41
Transport modalities comparison
The items that can be compared:

• Capacity
• Service level, distance and cost
• Emission
• Configurations between transport modes
42
Transport Modalities Comparison
Maritime Transport
Rail Transport
Inland Waterway Transport

Air Transport
Road Transport
Capacity
Rodrigue, J-P. (2013), The Geography of Transport Systems, Hofstra University, Department of Global Studies & Geography,
available from: http://people.hofstra.edu/geotrans
43

Service level and cost comparison
High Low
Maritime
Air Transport Road Transport Rail Transport IWT
Transport
Fastest, most reliable Fast, reliable and

Slower and less
and most visible. visible. Range of
visible. Highest
Lowest weight, weight and value. Rail
weight, lowest value
highest value and intermodal
and least time
most time-sensitive competitive with truck
sensitive cargo
cargo over longer distances
44
Service level and cost comparison

• Inland transportation
o Wide range of transport services with different characteristics
o Transportation by truck, rail and inland waterway
• Intercontinental transportation
o Two options, each on the other side of the costs and service level spectrum
o Transportation by air and maritime transport
45

Distance comparison
Please explain…….
C1
Transport costs per unit
Road C2
C3
Rail Maritime
D1 D2 Distance
46

1600
1400
1200
1000
Co2 emissions
800
(g/ton-km)
600
400
200
0
Aircraft Aircraft Truck (20 Truck (35 Train Barge Train Shipping
(1500km) tonnes) tonnes) (diesel) (electric)
47

Modalities next to each other in transport corridor
Modal Competition Modal Shift
Modal Complementarity
Three items to be discussed in more detail

• Modal competition
• Modal shift
• Modal complementarity
48
Transport combinations
Read the following text……
• The document can be found in Teams (TM / Intermodal folder)
I ntermodal & multimodal transport

I ntermodal & multimodal transport is the movements of freight from the
shipper to the destination with several modes of transport. The container
as transport unit is the catalyst of this development
I ntroduction
I n the past, changing modalities did not happen often because:
 Technical difficulties of transferring goods from one mode to another

 Additional terminal costs
 Delays because goods had to change transport units
 Competition between modes
 Segmented and un- integrated transport systems
 No trust in ‘honest’ revenue sharing, service and reliability
 Suspicious look at competitors
Since the introduction of the container (sixties) efforts were made to integrate the
various modalities. This was the start of intermodal / multimodal transport.
The integration of the container and thus intermodal transport happened in 4 steps:
49
Transport combinations
Questions:
After reading the document……..
• What is transmodal transport
• Where is transmodal transport happening?
• What was the real driver for cooperation between modalities?
• What is the difference between intermodal and multimodal transport?
50
Transport Combinations
Several transport combinations possible
• Transmodal transport
• Intermodal transport
• Multimodal transport
• Synchro modal transport
51
Transmodal transport and operations
DC Thruport
Road Rail
Intermediate Hub Intermediate Hub
Maritime/IWT Air
Rodrigue, J-P (2006), ‘Intermodal Transportation and Integrated Transport Systems: Spaces, Networks and Flows’, In Flowpolis: The
Form of Nodal Space. Las Palmas de Gran Canaria, Spain
52
DC
• Transmodal road operations
Road
o Takes place at DC’s / Crossdocking
o Storage and value added activities
• Transmodal rail operations

o Does not take place very often Thruport
 Long distances which have to be covered Rail
 Many regulations in place between countries
o More popular due to rise of containers

o Sufficient cargo volumes needed
53
• Transmodal maritime/IWT operations Intermediate Hub

o Transmodal maritime transport
Maritime/IWT
 Sea-ship to sea-ship
 Sea-ship to barge
o Transmodal inland waterway transport
• Transmodal air operations Intermediate Hub

o Intermediate hubs
Air
o Achieving economies of scale in transport
o Example: Dubai
54
Definition of intermodal transport

“Intermodal transport is the transportation of cargo using two or more means of
transportation without any handling of the cargo itself when changing modes”
The definition consists of two parts:

• Two or more means of transportation are used
• Cargo is not handled itself when changing modes (standardized units)
55
Intermodal transport and operations
Transloading
Facility
DC
Road
Intermodal
On-dock Rail
Thruport
Rail
Port Container Yard Intermediate Hub

Maritime
Transmodal
56
• Road and rail intermodal transport
• Rail and maritime intermodal transport
o Involves an on-dock rail terminal
o Transloading from ship to rail or from rail to ship
• Road and maritime intermodal transport

• Road, rail and maritime intermodal transport
o First and last mile delivery by truck
o Achieving economies of scale in transport
57
• Intermodal transport from point of origin to point of destination
Point of Inland Point of

Origin Seaport Port Destination
Maritime Rail Road
Intermodal Transport
58
Definition of multimodal transport
“International multimodal transport' means 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 the multimodal transport
operator to a place designated for delivery situated in a different country” (UN, 1980)
Differences with intermodal transport

• Not necessarily standardized units
• Single versus multiple contracts
59
Contracts in intermodal and multimodal transport
Shipper Shipper
Contract 1
Seaport Seaport
Contract 2
Seaport Seaport Contract 1
Contract 3
Port Port
Contract 4
Consignee Consignee
Intermodal Transport Multimodal Transport
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3. Transport & Logistics
3.4 Transport Combinations

Group Exercise
• How is multimodal transport done in your country?
• 10 minutes discussion
• 3 minutes presentation
• Items to be covered as discussed in the presentation of the lecture
61
3. Transport & Logistics
3.9 Conclusion
Final Assignment:
• Pick one port in your group members country
• Answer the following questions:
o What transport modes are present?
o What are the transport challenges?
o How is multimodal transport done and is synchromodal also possible?
o Analyse the transport cost structure according the 7 items
o Is the port and country part of the global value chain? How?
62
1. Martime & Shipping
Integrated Case Study

Consider the maritime industry in your country and think about the the several markets:
• The Freight Market?
• The sale and purchase market?
• The shipbuilding market?
• The demolition market?
1. Which market is not present in your country (yet) and has the highest potential?
2. Explain why this market may have a high potential.
3. How would you organize this new market?
63

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Transport management

Intermodal & multimodal transport

Member of the STC GROUP

Netherlands, famous for......

Take a few minutes to think and discuss

Netherlands, famous for flower export and import

World Economy, Trade, Carriage & Transport

World economy & transport

• Transport is a worldwide (intermodal) activity

• Shipping by sea is essential and the cheapest mode of transport

19th century – the industrial revolution from sail to steam

After 1950 - Enormous growth in world trade

Transport by sea covers about 90% of world trade

• More than 350 million containers are circling the globe

• 50.000 ships ensure that cargo is

• Import duties have dropped

Forms of cargo / packaging

Seaworthy packing is:

Forms of cargo / packaging

The way of packing affects:

Forms of cargo / general cargo

Forms of cargo / transport units

Pros and cons of air transport

Transport modalities (Tesla movie)

Road transport (trucking in container industry)

Transport documents in road transport are different from continent

Transport documents used for carriage by sea

Inland shipping (movie Portliner & Heineken/Alpherium)

Inland Shipping Transport documents is either:

Rail transport documents are:

Transport modalities comparison

The items that can be compared:

Transport Modalities Comparison

Inland Waterway Transport

Transport Modalities Comparison

Fastest, most reliable Fast, reliable and

Transport Modalities Comparison

Service level and cost comparison

Transport Modalities Comparison

Transport Modalities Comparison

Transport Modalities Comparison

Modal Competition Modal Shift

Three items to be discussed in more detail

I ntermodal & multimodal transport

 Technical difficulties of transferring goods from one mode to another

• What is transmodal transport

• Where is transmodal transport happening?

• What was the real driver for cooperation between modalities?

• What is the difference between intermodal and multimodal transport?

Intermediate Hub Intermediate Hub

• Transmodal rail operations

o More popular due to rise of containers

• Transmodal maritime/IWT operations Intermediate Hub

o Transmodal inland waterway transport

• Transmodal air operations Intermediate Hub

Definition of intermodal transport

The definition consists of two parts:

Port Container Yard Intermediate Hub

• Road and maritime intermodal transport

Point of Inland Point of