A supply chain is only as strong as its weakest link. Any single mode of transportation represents a potential point of failure in complex global supply chains. Multimodal transport solutions forge stronger supply chains by linking multiple transportation modes into a unified, seamlessly managed process.
Unlike traditional fragmented intermodal approaches, where goods may face disconnects or delays at each transfer point, integrated multimodal services close gaps between links, reducing the risk of failure and enhancing overall reliability. By synchronizing operations, documentation, and oversight across every stage, multimodal solutions ensure that the entire chain acts with the resilience and flexibility of a single, well-engineered system.
Coordinated multimodal transport matters now more than ever, especially in Asia, to manage rising costs driven by an inefficient modal mix or unoptimized routing. Multimodal transport combines air, ocean, and road freight to match loads to the best mode at the best value, optimizing routing and freight spend.
Relying too heavily on a single freight mode can result in delays and disruptions, as there are fewer alternatives. Multimodal options allow providers to pivot to the next best available option to keep freight moving as well as possible.
Don’t try to build a multimodal transportation service on your own. Engaging multiple modes individually leads to disconnected freight services, resulting in poor coordination and visibility.
In comparison, multimodal transport streamlines logistics through a single contract, enabling efficient supply chain management. Given the highly interconnected global economy, multimodal transport has become a foundation of modern logistics, particularly in trade hubs across Asia. There are often at least two, if not more, modes involved in practically every origin-destination pairing. An integrated multimodal transportation solution not only minimizes vulnerabilities but also provides shippers with greater visibility, efficiency, and peace of mind.
What Is Multimodal Transport?
Multimodal transport is a necessity across Asia as goods move from country to country for various manufacturing and assembly processes, and then to the final destination.
While they may seem similar, you should know the key differences between intermodal and multimodal services. Both services may use multiple forms of transport: air, ocean, rail, and road freight. However, multimodal solutions offer a coordinated process.
Intermodal: Transport on each mode is managed separately. Pickup from the shipper’s location, ocean transport, offloading and drayage to the rail hub, and final delivery are all handled by different parties. Often, there’s little visibility into the shipment’s location and progress.
Multimodal: Also uses multiple forms of transport, but with a single Multimodal Transport Operator (MTO) in control, which simplifies the process and reduces the administrative burden on the shipper. Any disruptions must be managed with individual carriers and parties, offering little flexibility for rerouting to alternative modes or routes.
Multimodal solutions create resilience in complex, global supply chains. Planning for weather events, customs delays, and port strikes is part of the service. Well-planned multimodal routing with a multimodal provider should include prearranged alternative routing and carriers to keep deliveries on schedule.
Common modal combinations in Asia balance speed and cost, depending on the commodities involved. In some cases, slightly slower transit times may yield lower rates with significant benefits to the bottom line, without sacrificing service. In most cases, trucks are involved at least at the origin and destination for air and ocean freight. Cross-border trucking is a common option to take advantage of labor rates and customs regulations among nearby nations.
For example, Asia freight forwarders may arrange for goods to be shipped from Asia to a European port via ocean freight, transferred to rail for inland transport, and finally delivered to a distribution center by truck. This integrated planning maximizes the efficiency of each segment and also ensures visibility across the entire journey.
Key Benefits of Multimodal Solutions
Multimodal transport solutions offer door-to-door service, delivering a range of benefits for all types of shipments. Integrated logistics services planning orchestrates the transport modes to work together in harmony, ensuring a smoother, more reliable flow of goods. Adopting a multimodal strategy typically creates a range of benefits:
- Improved transit times: By optimizing modes and routes, shippers reduce transit times. For example, electronics exports to Europe can connect with rail intermodal options for truck delivery to avoid congested ports closer to the destination. Compare MTO quotes and delivery schedules to meet your budget and client expectations. For instance, exports to Europe may require delivery within two weeks, so the MTO should provide clear timelines. Request detailed cost breakdowns, including handling, storage, and fuel surcharges, to avoid hidden fees.
- Cost savings: Through smarter mode selection, multimodal transport can combine less expensive options, such as using rail rather than long-haul trucking when possible, or targeting bulk products for sea freight. Select the mode best suited to meet market demands—for some products, ocean freight is too slow, but air freight is prohibitively expensive. Overall, seamless integration of modes can improve lead times and reduce the landed cost of your goods.
- Flexibility: Integrated multimodal solutions are responsive to disruptions such as port congestion or carrier delays, as the MTO is responsible for alternative solutions. Your freight has the flexibility to shift modes or lanes when needed.
- More sustainable transport: Strategically selecting road and sea modes significantly improves sustainability compared to air freight, which has much higher greenhouse gas emissions. Multimodal transport also prioritizes rail and inland waterways, which produce lower carbon emissions than other forms of transport.
- Simpler coordination: With a single provider managing all legs, there is oversight of the entire journey, ensuring the shipment stays on schedule. A single invoice covers all aspects of the shipment, and any damage claims are simplified with the International Federation of Freight Forwarders Associations (FIATA) Multimodal Bill of Lading (FBL).
Why Multimodal Works Especially Well in Asia
Asia has become a hub of multimodal transportation solutions, as many nations have oriented their infrastructure to support this supply chain strategy. That investment has been necessary as Asia’s diverse infrastructure requires mode agility.
Multimodal logistics solutions in Asia provide access to hard-to-reach areas where manufacturing output is growing faster than the transport connections. Landlocked nations and inland regions may lack direct access to seaports or major airports. These areas can link up with global supply chains by using the available transport networks. For instance, cross-border trucking provides faster inland access than port-only options. These multimodal solutions are becoming the norm for China–Vietnam, Thailand–Malaysia, and intra-India movements.
With a presence in more than 67 countries, Dimerco is well-positioned to provide integrated multimodal services. Our sweet spot is connecting with multimodal hubs and road-air/ocean integration, combined with deep border expertise. For a successful multimodal transport solution, work with an experienced logistics partner with a broad range of services to meet your needs.
How Dimerco Simplifies Multimodal Freight for You
Dimerco’s offering simplifies the complexities of multimodal solutions, beginning with end-to-end service across air, ocean, and cross-border road freight.
Experience the highest level of services as Dimerco experts select the appropriate combination of modes, coordinate schedules, manage documentation, and ensure the seamless transfer of goods between modes.
With Dimerco, you can benefit from strategic supply chain consulting and project support to design smarter freight flows. The MyDimerco platform provides real-time freight visibility tools and control throughout the journey, supported by custom SOPs and unified digital workflows across all Dimerco offices.
If you’re considering the benefits of multimodal solutions in Asia. Dimerco’s proven in-region knowledge helps avoid modal handoff issues, delays, or cost overruns that drive up landed costs. Partner with a 3PL like Dimerco with strong Asia freight capacity and a track record of execution from highway to rail to ocean and air.
Asia Multimodal Success Story
A tech manufacturer shipping high-value components from China to Malaysia found that ocean freight alone was too slow, while air freight was too expensive. Carriers were able to provide only limited visibility into the impacts of delays.
Dimerco designed a sea–road multimodal route with visibility via MyDimerco, reducing costs by 25% and improving delivery reliability by 3 days.
Unlock the Power of Integrated Logistics Services
Multimodal transportation solutions can unlock cost and speed advantages while simplifying operations with a single provider. The key to making multimodal work for you is partnering with a provider that integrates freight, tech, and regional expertise.
Contact Dimerco to explore a smarter multimodal strategy for your supply chain
