Difference between Intermodal and

Multimodal transport
1 August, 2013 by Hariesh ManaadiarCategoriesBill of Lading, Difference between, FAQ, Incoterms, Shipping
KnowledgeTagsContract of Carriage, Difference between, Incoterms, Intermodal, Multimodal48 CommentsEstimated reading
time = 4 minutes

Intermodal and Multimodal – These two terms are often used

loosely and interchangeably, without many people understanding the
meaning of the words or if there is a difference between the two..
Here, we will discuss what they mean and what they represent in day
to day shipping and freight environment..

Definitions :

Intermodal – is the movement of cargo from

origin to destination by several modes of transport where each of
these modes have a different transport provider or entity responsible,
each with its own independent contract.. Multiple carriers contracted
to fulfill a single journey..
Multimodal – is the movement of cargo from origin to destination by
several modes of transport where each of these modes have a
different transport provider or entity responsible, but under a single
contract.. A Single carrier contracted to fulfill a single journey..
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Simply put, the key functions of both terminologies are the same, but
the differentiation lies in the contract and responsibility of the
movement..
Explanation :
Intermodal operation : Cargo moving from Leicester in UK to Pretoria
in South Africa – Cargo is packed in Leicester and moved by truck to
the port of Felixstowe by a transport service provider (could also be
termed as an Intermodal service provider) under the employ of the
shipper..

From Felixstowe, the carrier takes responsibility of the movement of

the cargo to the discharge port in South Africa – say Durban..

From Durban port the consignee uses their transport service provider
(could also be termed as an Intermodal service provider) to move the
cargo by rail from to Pretoria Rail Terminal followed by a road move to
their premises or a full road move from Durban port to their premises
in Pretoria..

The rail and road service may be provided by the same transport
service provider or could be done by two different service providers..

In this case, the carrier issues a Port to Port Bill of lading, and the
whole operation is called an Intermodal Operation as it involves
several contracts :
  Between Seller or Buyer and Transport service provider for
road/rail movement from Leicester to Felixstowe
 Between Seller or Buyer and Carrier for sea movement from
Felixstowe to Durban
 Between Seller or Buyer and Transport service provider(s) for
rail/road movement from Durban to Pretoria
The costs/risks for such contracts will of course depend on
the Incoterms® used for this trade..

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Multimodal operation : Cargo moving from Leicester in UK to

Pretoria in South Africa – Cargo is packed in Leicester and moved by
truck to the port of Felixstowe by a transport service provider (could
also be termed as an Intermodal service provider) under the employ
of the carrier..
Cargo moves from Felixstowe to the discharge port in South Africa –
say Durban..

From Durban port a transport service provider (could also be termed

as an Intermodal service provider) under the employ of the carrier
moves the cargo by rail from to Pretoria Rail Terminal followed by a
road move to the consignee’s premises or a full road move from
Durban port to consignee’s premises in Pretoria..

The rail and road service may be provided by the same transport
service provider or could be done by two different service providers..

Here, neither the seller nor the buyer are arranging any contracts
other than their contract of carriage with the carrier..

In this case, the carrier issues a Combined Transport Bill of

Lading or a Multimodal Bill of Lading, and the whole operation is
called a Multimodal Operation and it involves a single contract :
 Between Seller or Buyer and Carrier for sea movement from
Felixstowe to Durban
The costs/risks for such contracts will of course depend on
the Incoterms® used for this trade..
More often than not, the above movements on the land leg are
outsourced by the carrier to transport service providers as a lot of the
carriers don’t have their own infrastructure to carry out these
movements.. However, here the carrier enters into direct contract with
their service providers..

Have you had any issues dealing with Intermodal or Multimodal

transport..??