Multimodal Logistics: A Quick Review of Freight Optimization

Multimodal logistics creates efficiency and servinc gains across the global supply chain.

With the increase in online shopping and demands for fast and affordable delivery, the need for optimized multimodal logistics and freight transportation remains as high as ever.

Many shippers’ management capabilities are being tested like never before. Keeping up with market volatility and customer demands is easier with a strong focus on multimodal logistics and shipping services. Businesses have gravitated more and more to e-commerce over the past decade as competition for faster, cheaper, time-definite delivery options continue to fuel rising shipping and handling costs.

Pitney Bowes forecasts that parcel volume in the U.S. will reach 32 billion to 39 billion in 2026, practically doubling the present volume. And with the increase in volume comes additional obstacles that multimodal shipping services providers will have to contend with to capitalize on multimodal transport opportunities.

What Is Multimodal Freight Shipping?

Multimodal logistics and freight transportation combine various shipping modes to move cargo. A single load could travel by rail, sea, and road before it reaches its final destination. Even though the load breaks down into different modes of transport, it still falls under a single contract/bill of lading.

What Is the Difference Between Multimodal and Intermodal Transport?

While they may sound similar, these two transportation modes differ from the shipper’s perspective.
In multimodal logistics, one contract covers the entire journey, and a single carrier takes sole responsibility for the safe and on-time delivery of the cargo.

For intermodal transportation, there is a separate contract for each leg of the journey, making the need for optimized multimodal logistics and multimodal transportation all the more vital for successful shipping and delivery.

Multimodal Logistics Advantages That Shippers Need to Know

Multimodal transport brings many advantages. The most common benefits include:
  • Reduced congestion at ports, warehouses, and distribution centers.
  • Lower costs in monitoring goods.
  • Reduced risk at Customs and improved load security during cross-border shipping.
  • Lower prices of imported goods, making them easier to sell.
  • Increased competitiveness of products in various international markets.
  • Allow for easier scheduling of drop-offs, pickups, and logistical planning.
  • Improved freight management options and processes.
  • Reduced cargo transportation, dwell, and delivery time.
  • Lower costs and fees for transportation of most cargo types.
  • Reduced risk of loss due to theft.

By choosing multimodal freight transportation, shippers can better coordinate services. They can ensure they provide the best possible experience for their customers, no matter where they operate.

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Learn More About Multimodal Logistics Freight Transport Optimization

Mastering the logistical aspects of multimodal shipping can help shipping providers streamline their services and ensure customer satisfaction remains high.

During market volatility and shifting consumer demands, the ability of freight management parties to scale and adapt quickly and efficiently can be a significant advantage in competitive industries. Embracing multimodal freight transportation and optimizing delivery services opens the doors for continued growth and innovation for shippers of all sizes. Download the eBook on multimodal freight optimization to take the next step toward improved performance in your transportation network.

Learn how freight optimization in multimodal logistics enables profitability.

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