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Understanding the difference between Intermodal and Multimodal transport

Hariesh Manaadiar
By Hariesh Manaadiar
56
difference between intermodal and multimodal

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 :

difference between intermodal and multimodalIntermodal – 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..

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..

Difference between Intermodal and Multimodal

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..

 

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..

Difference between Intermodal and Multimodal

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..??

56 COMMENTS

  2. I understood briefly about difference between intermodal and multimodal transport system.
    but in the intermodal transport there is delay when ticketing/contracting in each mode..

  6. Also I want to know about challenges facing intermodal transport services in developing countries especially in Africa ? case study Tanzania in the port of Dar es Salaam

  10. I don’t still understand about the Inter modal’s contract numbers. please kindly make it clear. Thanks!

    • I would like to repeat what mentioned above…the intermodal transport system refers to use more than one modes of transport and every transport service’s provider have their regulations and own contract… So in that case the two contract will provided than the multimodal transportation system… Thanks that’s what I understand on that article.

  11. I don’t still understand what they really represent in day to day shipping and freight. Please make it clear.

  12. Thanks, I use to believe both are the same one contract. If you see Report of an Euro Transportation Foundation Policy Forum held November 18–20, 1998 it described intermodal as one contract based transport as follows: “Intermodal transport—door-to-door services using more than one mode, but contracted as a single service on a combined bill of lading” If I consider your approach how can I differentiate it form uni modal?

  14. Both intermodal and multimodal transport has same key functions, difference lies in the contract and responsibility of the movement of goods. Priority Logistics is the leading intermodal carrier company in Canada, offering safe & cost effective logistics services to companies in North America.

  15. Here it is also important to note that intermodal transportation is carried out by forwarders and multimodal by Multimodal operators, where the former crystallizes the each contracting party at each point of change of transportation. whereas in the later Multimodal operator remains liable till the last point of transportation he has agreed to carry the goods (offcourse it is also based on who has the title to sue the operator in case there is damage to the cargo). The liability entailing both these terms should be highlighted as the basic difference between the two.

  16. Hi, It is very useful explanation but i have a doubt, if any ship is not involved in the transportation of goods (only train and truck or air vehicle involved) will it be a multi-modal transportation or not?

  17. Hi, we have a transport which goes by truck from our supplier to the train terminal in Germany and from there on by rail to Chongqing, China. My supplier demands a multimodal BL for the whole transport but since there isn’t any sea freight involved it seems impossible to get since railway transport doesn’t involve a BL but a railway bill which doesn’t give title like a BL does. Do you have any advice on this?

  19. Dear Hariesh:
    Thank you for this great work, but I need you to elaborate more about if one of these Inter/Multi modal supposed to be changed if the carrier/Main operator or 3PL will discharge the shipment in a one point and reload it in another mode. For example we used to send fresh shipments to Europe by REF containers from Egypt to Salerno then our office there discharge every four containers and reloaded it into three REF trucks only!!. Would this will change the name of the cycle from Multimodal to Intermodal or not? Please assist by your knowledge.

    Best regards,
    Muhammed Khairy

  20. Dear manaadiar,

    I hope you are doing. I just got one query to ask. I am currently working on my thesis and intermodal transportation is my research topic. My research is focusing on the inland freight movement, you know like establishing inter-modal terminals and iam trying to explore the impediments of rail and road and how there combination can lower down the cost of production, most importantly modal shift is what Iam going to discuss in my thesis report. I have read your article and that’s a master piece I must say. My query is that only shipping lines offer inter-modal services or 3PL firms can also offer it. Kindly answer this question in the light of inland freight movement.

    Hope to hear soon from you.

    Regards,
    Junaid Khan

    • Hello Junaid, anyone can offer inter-modal services and call themselves inter-modal operator.. They can offer this service as an own service with port, terminal, rail licences or offer as a 3PL provider outsourcing it all.. A lot of shipping line offer the service, but not with their own resources.. Trust this assists..

    • Thank you author for responding me, iam highly obliged. There is just one more question i like to ask. is it compulsory to move your freight in a container or related loading unit while using inter-modality application?

    • Hi!!
      Good job.

      Please, can we talk about Multi/Inter-modal transport when the movement of the cargo is happening in the same country?

      Thanks.

  22. HI,HARIESH;
    Very good article but there is one ward not clear to me ,when you say “carrier” in multimodal operation , do you mean shipping line by that ? and if so ,does that mean that all multimodal operations are door to door shipments arranged by shipping line ?
    waiting for your reply
    sami

  23. Great article and blog, but I have a clarification question: on your “multi-modal” example, would there really just be one contract between seller/buyer and carrier for the sea movement from Felixstowe to Durban? Depending on the incoterms there would presumably be two contracts – one between seller and carrier for Leicester to wherever, and one between the buyer and carrier between wherever and Pretoria…?

    • Hello Will, thanks for your comment.. Presume you are referring to “modes have a different transport provider or entity responsible, but under a single contract” in the article..

      The term contract is mentioned in the article in the context of the contract between the shipper and the carrier.. In the case of multimodal movement, the carrier undertakes to move cargo from door to door and issues a Combined Transport Bill of Lading and under this movement all the contracts between door to door will be handled by the carrier under a single contract..

      Depending on Incoterms, there may well be other contracts between other parties, but the carrier has no connection with Incoterms agreed between seller and buyer (https://www.shippingandfreightresource.com/incoterms-and-the-shipping-line/).. Carrier merely undertakes to move the cargo from Point A to Point B based on the agreement with the shipper..

      Trust this assists..

  24. hello guys somebody can help me the relationship between multimodalism and intermodalism and conternalization.

  25. Hello. Thank you so much for your aclaration. I have studied Transport&Logistics in Barcelona and have had “a few” notes&websites about multimodal and intermodal and none of them showed a clear difference between them.

  26. Hi, I’m mentor under graduate student from Ghana. I’ve found your article to be very useful as I’m planning to write my thesis in logistics management. Hope to receiving more of such in order to aid my studies. Thanks.

  28. Dear Hariesh, Just as I was preparing for a workshop on Multimodal Transportation for my students, I saw this post and found it very useful. Thanks!

  30. Dear Hariesh,
    Preparing a lesson on intermodal, I was reading this post.
    it’s clear and perfectly described but I wonder if these definitions are shared by any shipping conventions or clearly used as you described.
    Taking into account the terminlogy as established by european community, I found
    “”MULTIMODAL TRANSPORT:Carriage of goods by two or more modes of transport””. (as simple as is), but precised by some (as ITF) as case where the cargo is unloaded/loaded in the second (or more) mean of transport
    and
    “”INTERMODAL TRANSPORT : The movement of goods in one and the same loading unit or road vehicle, which uses successively two or more modes of transport without handling the goods themselves in changing modes.
    By extension, the term intermodality has been used to describe a system of transport whereby two or more modes of transport are used to transport the same loading unit or truck in an integrated manner, without loading or unloading, in a [door to door] transport chain. “” in this case cargo remains in the same loading unit (namely the container) and no loading/unloading of the cargo (but the unit).
    Then as per my understanding, Multimodal will refer to bulk shipment (or any breakbuk) and Intermodal to container.
    On the other side, I agree that we are using, within shipping industry, multimodal BL (Us case) or for Haz, Multimodal Dangerous Goods Forms.
    What is your point of view on this terminology ?
    thks
    Vincent

    • That’s another excellent way of explaining the difference nice and simple.

      Intermodal = Multimodal + containers.
      Multimodal = Intermodal – containers.

    • Hello Vincent, my apologies for having missed to respond to your comment..

      Firstly, this article, the definition and the explanation given for Intermodal and Multimodal relates to containerised cargoes only which is where these two terms are mostly used..

      It maybe easier to remember it this way..

      Both models cover door to door movement, but
      – in Intermodal it involves multiple contracts and
      – in Multimodal it involves one contract

      Here when I say contract, I refer to the contract between carrier and shipper (or buyer)..

      It is very rare that a carrier undertakes to do the full logistics multimodal move in bulk or break bulk cargo flows.. At best, the carrier’s “agent” might undertake to handle the full logistic chain, but very very seldom the carrier..

      Multimodal could however include Groupage cargoes or LCL cargoes where the carrier, their agent, forwarder or groupage operator may undertake to handle the movement from door to door under one contract and this movement could involve truck from shipper’s door to CFS, rail from CFS to port, sea from port to port, barge from port to CFS, truck from CFS to consignee’s door..

  32. Dear Hariesh Manaadiar,

    I’m working as an Operation Executive in a freight forwarding company in Singapore.

    Would like to say that you’ve done an excellent job. This website is very informative and also with very detailed and easy to understand explanation.

    Thank you so much Hariesh Manaadiar.

    Thanks a lot for sharing the knowledge. Commendable of you to have such a great website.

  34. Im a Logistics student from Turkey and I’m on learnıng step ın my job. I can say that, thıs webside ıs my best frıend. Also , thıs topic is very understandable. Thanks for everythıng.

  36. I am in India (Mumbai ) My Profession is Shipping and I am working with one of large Import /Export Company .

    Like this type of information is improve my knowledge.

    Thanks,

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