Multimodal Transportation

Project Cargo
Transportation
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SPECIAL TRANSPORT SERVICES

 CONTENTS
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 Multimodal / Inter modal

Transportation
 Project Cargo
 CONTENTS
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• Definition & examples

• Logic for using Multi modal
Transportation
• Characteristics of Multi modal Cargo
• Advantages
• Disadvantages
• Types of operations
• Types of Multi modal operators
 Definition of Multimodal / Intermodal
Transportation
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 A Transport System usually operated

by a carrier using more than one
mode of transport under the control
of ONE OPERATOR UNDER ONE
DOCUMENT in two or more
countries.
 Examples :
Sea & Rail , Sea & Road , Sea & Air
Rail & Inland Waterway, etc;
 LOGIC FOR USING MULTIMODAL
TRANSPORTATION
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 ONE OPERATOR determines &

co-ordinates the actual modes involved
in the transportation.
 THE MODE used in each portion of the
route is the most efficient in terms of
cost and time.
 OVERALL GAIN is achieved in terms of
time and expenses.
CHARACTERISTICS OF MULTIMODAL
CARGO
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 Product Value / Inventory Cost.

 Quantity ,Freight Cost
 Product Characteristics
( Excluding Hazardous Cargo )
 Multi modal possibilities
 Weight / Measurement Factor
 Transit Time / Destination
 ADVANTAGES OF MULTIMODAL
TRANSPORTATION
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 Minimizes Time Loss at

transshipment points.
 Faster Transit of goods.
 Reduces the burden of documentation
formalities.
 Savings in cost.
 Only ONE AGENCY to deal with
 Reduces cost of exports.
 ADVANTAGES OF MULTIMODAL
TRANSPORTATION
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( contd )

 Forwarders able to demonstrate their

skills & services thru Combined
Transport Operators.
 Enable to offer Door-to- Door services
& rates.
 Facilitates Forwarder’s Cargo
Consolidation Service using
containers
 DISADVANTAGES OF MULTIMODAL
TRANSPORTATION
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 Operator has to draw separate contracts

for each mode of transport.
 Uncertainty in determining the entire
cost structure well in advance.
 Different conditions and levels of
liability applicable in each segment.
 Difficulty to establish the ONUS OF
RESPONSIBILITY for Cargo Claims with
different carriers.
 TYPES OF MULTIMODAL OPERATIONS
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 Sea / Air - ( Far East / Europe )

 Road / Air – ( Europe / USA )
 Rail / Road / Inland Waterways
 Mini-Bridge
 Land Bridge
 Piggy Back – Unitized Land / Rail.
 Sea Train
TYPES OF MUTIMODAL OPERATORS
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 Vessel Operating Inter Modal

Transport Operator ( VO-MTO )

 Non Vessel Operating Multimodal

Transport Operators ( NVO- MTO )
 NVO – MTO TYPES
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 Fully fledged ITO

Controlling different modes of
transport and arranging thru Door to
Door movement under one FIATA
Multi Modal Transport B/L
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 NVO arranges Port to Port ocean

transport under a HBL or Ocean
B/L which may also cover Land,
Rail Transportation .
 NVOCC arranges consolidation or
Inter Modal Transport Services
under HBL or FBL
 RESPONSIBILITY & LIABILITY OF
INTERMODAL OPERATOR
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 Application of ICC Rules subject

to application of any National Law.
 Satisfactory performance of operation
 Delivery of goods at destination in
same condition
 Responsible for acts & omissions
of Agents or Servants.
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 Liability for loss or damage to goods

or delay in delivery .
 What stage at which loss or damage
occurred, the liability is determined
as under :
By International Convention or
National Law, if the stage at which it
occurred is known .
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 If unknown, compensation is based on

actual value subject to limit of 2 SDRS
Per Kg.
 Benefit of limitation of liability lost
in the event of willful misconduct
on the part of ITO.
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 ITO not liable when loss or damage

caused by factors beyond the control
of ITO.
 Liability for delay only when stage
at which it occurred is known, the
extent is applicable as per
international convention.
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 Failure to effect delivery within 90

days after expiry of time limit shall
entitle consignee to treat goods as
lost.
 ITO not liable unless suit brought
within nine months after delivery
of goods.
 DOCUMENTATION FOR INTERNATIONAL
TRANSPORT OPERATIONS
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 Internationally accepted legal

document absent due to the absence
of international convention.
 Based on ICC Uniform rules for
Combined Transport Document
BIMCO & FIATA have created
commercial documents.
 TYPES OF COMMERCIALLY ACCEPTED
DOCUMENTS FOR INTERNATIONAL
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TRANSPORT

 COMBIDOC
Evolved by BIMCO , used by Vessel
Operating Inter Modal Operator
approved by ICC.
 FIATA Combined Transport B/L ( FBL )
Established by FIATA for the use of
Freight Forwarders.
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 MULTIDOC
Proposed by UNCTAD to facilitate
the entry of the convention on
Multi Modal Transport.
 PROJECT CARGO
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 Project Cargo is the shipment of a

complete plant facility from several
points of origin and several
manufacturers to a single site where
the plant or the facility has to be built.
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 The movement of large cargoes such as

Generators , Cranes , Aircraft , Rig
movements, Turbines , Transformers,
etc;
 Project Cargo Shipments have to be
arranged by experienced Project
Forwarders who are specialized in heavy
lift and out of gauge cargo.
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 For handling Project Cargo, the logistical

requirements should be studied in detail
such as the following:
- Handling facilities available at the Port
of Origin / Destination.
- Inland Transportation arrangements at
origin and at destination
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 The type of Vessels / Aircrafts to be used ,

the loading and discharging capabilities of
the vessel / aircraft.
 To obtain relevant permissions for on
carriage at origin / destination.
 To assess the overall cost of the total
operation if the Project Cargo movement
is contracted on Door to Door basis.