Using Multimodal Transport & Multimodal Rating in Freight Management

Multimodal transport strategies optimize road, rail, ocean, air, and last-mile transportation.

In the freight shipping and transportation market, not all shipments or shipping methods are the same. One set of services don’t always apply. That’s why understanding the advantages of multimodal transport is a critical part of rate monitoring and expense management.

Some shipping situations, parcel routing requirements, and specialty cargo need more care and attention. Likewise, certain destination or origin points add complexity to shipments. They just require a little more effort.

Supply Chain Quarterly, citing a Bloomberg/Truckstop.com survey conducted in Q3 2021, highlighted the following:

  • 56% of respondents hauled more loads in the third quarter of 2021 than the previous year.
  • 55% of truck drivers said they expect spot rates (excluding fuel surcharges) to rise in the next six months.
  • 74% expect rates will either rise or stay steady in 2022.

Furthermore, Lee Klaskow, a senior freight transportation & logistics analyst at Bloomberg Intelligence, predicted that the market will “likely become the tightest trucking market in a generation.”

That demand combined with elevated rates and fuel costs reignites the need for efficiency and optimization in freight transportation.
Understanding the various types of multimodal transport, and the advantages of multimodal transportation can help improve your transportation cost control.

What Is Multimodal Transport?

Several types of multimodal transport can be utilized in the supply chain network.
In one example of transportation using a multimodal approach, an organization ships products from the United States to overseas locations. In this case, getting a single cargo container or pallet of goods to its final destination can take many transport modes.
Determining that course is an enormous and complex task. Success requires that shippers juggle multiple transportation modes and methods to get cargo from Point A to Point B on time and in one piece.
Rail, truck, air, ocean, and final mile shipping modes and services are all multimodal transport options available to shippers. Whether working with spot, contract, or specialized arrangements, if you monitor freight transportation rates across modes, you’re able to offer customers the best costs and services.

Multimodal rating allows you to compare transportation modes for cost and service levels, including time-in-transit and delivery capabilities.

This requires access to a broad amount of freight rate information, including rates extended directly by carriers, third-party logistics providers (3PLs), and brokers. Point-to-point integrations with digital freight matching tools offer shippers added visibility to comprehensive freight rate data.

What Are the Advantages of Multimodal Rating in Multimodal Transport?

Multimodal transport is all about combining shipping modes and methods to deliver the most reliable and affordable transportations services. Multimodal optimization saves time, money, and resources across the board. It applies to many industries and cargo types, increasing its use within the modern global supply chain.

Multimodal rating allows freight management teams to maximize the various types of multimodal transport and optimize cost and service to end customers.
Market Comparisons Provide Access to Real-Time Freight Rates
When shippers and carriers can access updated information about rates and expenses associated with a particular load, they can better decide what to take on and what to pass up.
Weighing and Linking Value of Investments to Costs of Service
Comparing investment costs and the returns on those investments accurately and reliably makes it easier for transportation and freight management teams to implement predictive budgeting.
Enhanced Focus on Final Mile and Drayage Related Shipping Needs
Better freight transportation options with multiple types of multimodal transport services can help improve final mile delivery and ensure customers have access to the best shipping options in the market.

Calculate your potential Saving While Using an enterprise TMS

Gain New Multimodal Transport and Rating Insight With MercuryGate

In trying to access the advantages of multimodal transport, transportation managers need to keep their eyes and minds open to today’s many opportunities. Implementing a cloud-based TMS optimizes multimodal shipping services with multimodal rating accessible in the same operational platform and other transportation management tools.

Be sure to see our client case study with Sprouts Farmers Market to learn more about the value multimodal optimization can bring to your transportation plan.

Learn the value of Using TMS and Multimodal Optimization.

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