What is multimodal transport?? How many types of multimodal transport are there?? We will answer all of the above questions in the following article.

What is multimodal transport??

Multimodal transport (Multimodal transport) is a form of transporting goods by at least two or more different modes of transport.

Multimodal transport (VDTPT) operates for the purpose of delivering goods through many different channels such as road, railway, waterway and airway.

During the transportation process from one country to another, Multimodal transport is based on a contract, a transport document, a responsibility regime and only one person in charge of the goods.

Nowadays, Multimodal transport is gradually becoming a popular mode of transport alongside conventional modes of transport thanks to its diversity that can meet many requirements in the freight transport market..

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Regulations on multimodal transport

After learning what multimodal transport is, We invite readers to follow the regulations on this type of transport in the international market in general and in Vietnam in particular..

International regulations

The above definition of multimodal transport is stated in the United Nations convention on international multimodal transport of goods at a conference in Geneva on August 24, 1980. (UN Convention on the International Multimodal Transport of Goods, 1980).

Next is the United Nations Committee on Trade and Development (UNCTAD) with the International Chamber of Commerce (ICC) Provides general rules for multimodal transport documents (UNCTAD ICC Rules for Multimodal Transport Documents) effective from January 1, 1992.

The 1980 Geneva Convention also defines multimodal transport operators (Multimodal Transport Operator – MTO) is “A person who, on his own behalf or through another person acting on his behalf, enters into a multimodal transport contract and acts as principal and is not an agent or person acting on behalf of the consignor or carriers participating in the multimodal transport and is responsible for the performance of the contract.”.

Regulations in Vietnam

In Vietnam, Issues related to DVT are regulated in the following legal documents:

• Decree 125/2003/ND-CP, and Circular No. 10/2004/TT-BGTVT dated June 23, 2004 guiding implementation;
• Decree 87/2009/ND-CP on multimodal transport;
• Circular 45/2011/TT-BTC on regulations on customs procedures for international multimodal transport goods;
• Official dispatch 3038/TCHQ-GSQL implementing Circular 45/2011/TT-BTC;
• Decree No. 89/2011/ND-CP amending and supplementing Decree 87/2009/ND-CP.

Decree 87/2009/ND-CP regulates businesses, Vietnamese cooperatives are only allowed to conduct international multimodal transport business when the following conditions are met:

1. Have a Business Registration Certificate including registration of international multimodal transport business;
2. Maintain minimum assets equivalent to 80.000 SDR or have an equivalent guarantee;
3. Have multimodal transport professional liability insurance or equivalent guarantee;
4. Have an international multimodal transport business license.

October 10, 2011, The Prime Minister has issued Decree No. 89/2011/ND-CP amending, supplement Article 6, Article 7 of Decree No. 87/2009/ND-CP mentioned above. Accordingly, Vietnamese businesses want to apply for an international multimodal transport business license, documents must be sent to the Ministry of Transport. Profile included:

1. Application for an international multimodal transport business license;
2. Certified copy of Business Registration Certificate including registration of international multimodal transport business;
3. Confirmation of the value of business assets by a financial agency or equivalent guarantee.

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Characteristics of multimodal transport

• Multimodal transport has at least 2 modes of transport;
• The transportation of standard loading and unloading units in the door to door transportation chain is continuous;
• Goods packaging must not be opened when changing means of transport even if different modes of transport are used during the transport process. ;
• The multimodal transport operator will be responsible for the goods during the transportation process from the time they receive the goods to the time they are delivered to the recipient.;
• There are some transportation organizations that simplify documents and costs when performing transportation;
• Ensuring continuous transportation of goods on all routes at a cost-effective basis. Fully meets the needs of shippers, based on simplification of documents.

Multimodal forms of transport

Some forms of multimodal transport that must be mentioned in the market include::

Sea transport – air transport (Sea – Air)

Sea transport – Air transport is the model that maximizes speed. This method not only ensures that goods are transported in large quantities by sea, but also ensures speed by air. Just solved the economic problem, while maximizing delivery time. The types of goods that can use this form are seasonal or high-value goods such as electronics, clothes, toy, shoes,…

When goods are transported by sea to the port and then to the recipient far inland, to ensure seasonality and speed, Air is the best means to optimize the transportation of goods.

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Road transport – air transport (Road – Air)

Road transport – Aviation is a model that combines maneuverability and speed. People use cars to gather goods to airports and transport them to delivery places in other locations.

Cars are used in the beginning and end of this process. Thanks to that, Delivery of goods in this form is highly flexible, respond to collection, Concentrating goods to the focal point, the airport, Serving long-haul routes.

Railway transport – ground transport (Rail – Road)

Rail transport and road transport are a combination of safety and speed. This type of transportation is quite commonly used in American and European countries.

Accordingly, The delivery person will pack the packages in trailers and be towed to the station by tractors. At the train station, The tractors are pulled onto wagons and transported to the destination station. When the train arrives at the recipient's station, They will use tractors to pull the trailers down and transport them to the customer's delivery location.

Rail/road transport/inland water transport – sea ​​transport (Rail/ Road/ Inland Waterway – Sea)

This is a popular transport model used to transport import and export goods. Goods are transported by rail, by road or inland waterway to the seaport of the exporting country. Afterward, will be transported by sea to the importing country, then reaches the recipient by rail, road, internal waterway.

This model is suitable for transporting containerized goods on shipping routes without requiring urgent time..

Continental bridge model (Land Bridge)

Through this model, Goods will be shipped by sea, Crossing oceans to reach ports on a certain continent requires transferring over land to continue by sea to another continent..

Land transport is like a bridge between seas or oceans.

In addition to the above forms of transport, Import-export businesses can also transport goods by Mini Bridge (Containers are transported from one country's port to another country's port, then transported by rail to a second port city in the destination country under a through bill of lading issued by the ocean carrier.) or Micro Bridge (Similar to Mini Bridge, The difference is that the final destination is not a port city but an industrial park or commercial center in the interior).

The role of multimodal transport

Multimodal transport is a trend in the logistics industry today. That is the bridge that helps commercial activities take place quickly and effectively. Some of the roles of VDTPT can include::

• VĐĐPT increases competitiveness in price and product quality, Helps reduce shipping costs and shipping times, at the same time reducing the cost of producing goods.
• DVTPT helps achieve economic efficiency and expand the transport network because this form can be used to transport large volumes of goods..
• VDTPT helps businesses access the market faster. In addition to the domestic market, there is also a foreign market. Since, promote economic growth and encourage international trade to develop.

Conclude

Above is the shared content about what multimodal transport is and its forms of operation.

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