Learn how to coordinate different modes of transport for your import/export business and optimize your logistics performance.

Multimodal transport can be a combination of any of the freight forwarding methods, which are paid for by the same party (buyer or seller). This can give an near infinite combination of choices. Such as: *Part airfreight, part road freight a shipment to gain some of the speed of airfreight with incurring the full cost to destination. *Part road freight part sea freight when you are shipping to customer on a different continent without a direct road link *Short Sea freight UK to Europe then Road Freight to avoid road freight congestion at the main ports such as Dover. So which is the best freight forwarding service to use? It all comes down to two factors: *Time *Cost If you don’t have much of one you will need more of the other!

How can you manage logistics with multiple modes of transportation?

Managing logistics with multiple modes of transportation can be a complex and challenging task for import/export businesses. You need to coordinate different carriers, schedules, routes, costs, and regulations to ensure that your goods reach their destination on time, safely, and efficiently. In this article, you will learn some tips and best practices to help you plan, execute, and monitor your multimodal transportation strategy.

1 Understand your options

Multimodal transportation involves using more than one mode of transport to move your goods from the origin to the destination. The most common modes are air, sea, road, and rail. Each mode has its own advantages and disadvantages in terms of speed, cost, reliability, capacity, and environmental impact. Depending on your product type, quantity, value, and urgency, you may need to combine different modes to optimize your logistics performance. For example, you may use air freight for high-value or perishable goods that require fast delivery, sea freight for large or bulky goods that are less time-sensitive, and road or rail freight for short-distance or inland transportation.

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Andrew Kennedy

Logistics Manager at Kitagawa Europe Ltd.
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Part of being an International Logistics Manager is to ensure your company shipments are transported in the most efficient and the most cost effective way. High freight costs can very quickly erode the profit margin on your goods and, after all, the aim of business is to make a profit. Having the experience to know which freight forwarding method to use can be the difference between making a profit and making a loss. So, which is the best shipping option to use? International Air, Sea, Road and Rail freight services all have their own unique advantages and disadvantages depending on your company circumstances and capacity.

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2 Choose the right service provider

One of the key decisions you need to make when managing multimodal transportation is whether to use a single service provider or multiple service providers. A single service provider, such as a freight forwarder or a multimodal transport operator (MTO), can offer you a complete package of services, including booking, documentation, customs clearance, insurance, and tracking. This can simplify your communication, coordination, and liability issues, as you only deal with one contract and one point of contact. However, a single service provider may not have the best rates or the most suitable network for your specific needs. Multiple service providers, on the other hand, can give you more flexibility and control over your logistics operations, as you can choose the best carrier and mode for each segment of your shipment. However, this also means that you have to manage more contracts, invoices, and contacts, and deal with potential delays, errors, or disputes between different parties.

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Andrew Kennedy

Logistics Manager at Kitagawa Europe Ltd.
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Multimodal transport can be a combination of any of the freight forwarding methods, which are paid for by the same party (buyer or seller). This can give an near infinite combination of choices. Such as: *Part airfreight, part road freight a shipment to gain some of the speed of airfreight with incurring the full cost to destination. *Part road freight part sea freight when you are shipping to customer on a different continent without a direct road link *Short Sea freight UK to Europe then Road Freight to avoid road freight congestion at the main ports such as Dover. So which is the best freight forwarding service to use? It all comes down to two factors: *Time *Cost If you don’t have much of one you will need more of the other!

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3 Plan ahead and be flexible

Multimodal transportation requires careful planning and coordination to ensure that your goods are delivered on time and in good condition. You need to consider factors such as transit time, transit points, cargo handling, loading and unloading, documentation, and customs clearance. You also need to anticipate potential risks and disruptions, such as weather, traffic, accidents, strikes, or regulatory changes. To avoid or minimize these issues, you should plan ahead and have a backup plan in case of emergencies. You should also be flexible and adaptable to changing situations, and communicate regularly with your service providers and customers to keep them informed of any updates or delays.

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4 Track and monitor your shipment

Another important aspect of managing multimodal transportation is tracking and monitoring your shipment throughout its journey. This can help you ensure that your goods are moving according to the schedule, identify and resolve any problems, and provide accurate and timely information to your customers. You can use various tools and technologies to track and monitor your shipment, such as barcodes, RFID tags, GPS devices, online platforms, or mobile apps. These tools can provide you with real-time data on the location, status, and condition of your goods, as well as alerts and notifications in case of any deviations or incidents.

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5 Evaluate and improve your performance

Finally, you should evaluate and improve your performance after each shipment to learn from your experience and optimize your multimodal transportation strategy. You should collect and analyze data on key performance indicators (KPIs), such as delivery time, cost, quality, customer satisfaction, and environmental impact. You should also solicit feedback from your service providers and customers to identify any gaps or areas for improvement. Based on your findings, you should make adjustments and improvements to your processes, procedures, and partnerships to enhance your logistics efficiency and effectiveness.

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6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Sinisha Matikj

Contracts Manager @ GAC Group | MBA | CISCP, CISCM | Result-Oriented Dynamic Leader | Exceptional Negotiator | Strategic Thinker | Business Optimization | Process Improvement | LinkedIn Top Voice | 3PL | Logistics
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Managing logistics with multiple modes of transportation involves thoughtful planning, coordination, and real-time tracking. It's essential to map out the most efficient routes, taking into consideration the urgency, cost, and the nature of goods. Utilizing a Transportation Management System (TMS) can also be incredibly beneficial. This software can automate much of the process and provide vital real-time updates. Remember, communication is key in managing such operations to ensure all parties are aligned. Regular reviews and system updates are also necessary to handle changes in demand, shipping lanes, or regulations.

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How can you manage logistics with multiple modes of transportation?

1

2

3

4

5

6

1 Understand your options

2 Choose the right service provider

3 Plan ahead and be flexible

4 Track and monitor your shipment

5 Evaluate and improve your performance

6 Here’s what else to consider

Import/Export Operations

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How can you manage logistics with multiple modes of transportation?

1

2

3

4

5

6

1 Understand your options

2 Choose the right service provider

3 Plan ahead and be flexible

4 Track and monitor your shipment

5 Evaluate and improve your performance

6 Here’s what else to consider

Import/Export Operations

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