Multimodal logistics is a rational way of delivering cargo. This system allows you to optimize routes, speed up transportation, and reduce logistics costs. At the same time, it is important to take into account the risks of multimodal transportation. That is why today we will dive into industry challenges and analyze the best ways to address them.
Why are risks higher in multimodal logistics than in single-mode logistics?
Single-mode logistics means transportation using only one mode of transport. Multimodal logistics, on the contrary, involves more logistical elements and is therefore inherently more complex, although more efficient. Its complexity lies in the following aspects:
- A greater number of stages, participants, and providers in the supply chain.
- A larger number of control points. For example, after a container arrives at a seaport, the cargo is transshipped onto a truck or rail platform and transported to an inland terminal, where it is deconsolidated and then delivered by road transport to final recipients.
- The impact of rules and regulations in different countries. In international transportation, it is necessary to take into account the legislation of the countries through which the cargo will pass.
However, this is a general overview. Let us take a closer look at multimodal transportation and the risks that can complicate the delivery process.
Main types of risks in multimodal transportation
- Delays at transshipment ports.
- Cancellation of vessel calls. Due to storms and external factors, scheduled sea transport times may be postponed.
- Long train formation times in rail transportation. Your container will not depart individually but will wait until all platforms are fully loaded.
- Risks related to military activities in Ukrainian ports. Shipping is complicated, insurance premiums are high, and air transport is unavailable. The existing alternatives are rail and road transport, which increase delivery times.
- Selection of transit ports – Poland, Romania, and Slovenia. From time to time, problems arise at border crossing points and terminals, negatively affecting the duration of cross-border operations.
- Customs procedures and documentation. Even minor errors or inconsistencies in transport and customs documents (including CMR, bills of lading, invoices, and packing lists) may result in inspections, delays, or refusal to allow cargo to cross the border.
- Damage to or loss of cargo.
- Communication failures between operators. Complicated data exchange leads to a range of operational issues.
- Financial risks (additional costs due to delays, penalties, unforeseen payments).
- Restrictions on cargo type and dimensions, inability to consolidate cargo, etc.
These and other risks of multimodal transportation most often lead to extended delivery times.
How does DALETH GROUP minimize multimodal transportation risks?
| Method | Recommendation |
| Proper route and schedule planning | We select the optimal route taking into account distance and time. This reduces the risk of delays and additional costs. |
| Consideration of peak loads at ports | We analyze seasonal and daily peak periods. This helps minimize queues, terminal congestion, and downtime. |
| Cooperation with proven port operators | We choose reliable partners who ensure high-quality port services and time optimization. |
| Buffer time planning | When planning shipments, we include additional time buffers at each stage of transportation. This allows us to compensate for possible delays caused by customs procedures or technical issues. |
| Single responsible logistics operator | In multimodal transportation, our company acts as a single contractor for the client. This reduces the risk of misunderstandings between different participants in the supply chain and centralizes process management. |
| Complete set of documents (advance verification – declarations, certificates, invoices) | We check documents in advance, which reduces the number of customs delays and additional expenses. |
| Cargo insurance | We recommend using cargo insurance policies that cover the risks of damage, loss, or theft during transportation. |
| Communication and synchronization among all participants | We ensure continuous information exchange between carriers, ports, customs authorities, and the client to avoid misunderstandings and delays. Most importantly, we continuously improve and optimize our logistics strategies to be ready for a wide variety of scenarios. |
Examples of situations when risk probability increases
Of course, it is impossible to foresee all force majeure events. However, some of them can be controlled:
- Peak seasons, such as holidays, when transportation volumes increase, and there is a shortage of transport capacity.
- Improperly prepared cargo, for example, missing or incorrect documentation.
Daleth Group – your support in multimodal logistics
Risks in multimodal transportation are not a reason to abandon this mode of transport. The key is proper process planning based on a thorough analysis of the current situation.
Even better – trust the experts at Daleth Group and take advantage of our full cargo support services!
FAQ
Why do delays occur more often in multimodal logistics?
Because there are more delivery stages and participants, a disruption can occur at any stage.
How can the risk of cargo damage during transshipment be minimized?
By using reliable packaging, additional cargo securing devices in containers and vehicles, and specialized transshipment equipment.
Does seasonality affect the risks of multimodal transportation?
Yes, because it increases the load on hubs, ports, routes, and customs authorities.