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Multimodal transport: benefits and challenges

In today’s world of logistics and international trade, freight transport faces increasing challenges. In order to meet the demands for efficiency, speed and economy, companies have begun to look for innovative solutions that allow them to optimize their logistics operations. The most popular solution so far has been multimodal transport, a strategy that combines different modes of transport in order to maximize the benefits of each and thus overcome any challenges that may arise during the transport of goods.

Through this article we will enter the multimodal world and go into detail about the benefits and challenges that this strategy presents. In the same way, we will talk about how efficiency and profitability in the supply chain can be improved. Firstly, we will talk about the benefits of this way of facing logistical challenges.

Benefits:

  • Efficiency and flexibility.

Multimodal transport allows you to make maximum use of the advantages of each method of transport. For example, maritime transport is excellent for reaching very long distances, in the same way it is a profitable option for shipping large volumes of merchandise. Another advantage of maritime transport is the accessibility to a wide network of ports at a global level.

Regarding land transport, the advantages that multimodality takes advantage of is the speed and flexibility that it possesses. It allows fast and direct deliveries especially on short journeys and within specific regions. Another benefit would be the ability to access remote areas, extremely useful for delivering to hard-to-reach areas.

For air transport the reduced transit time is the biggest advantage, this is the fastest method of transport available. It is especially beneficial if an urgent delivery is required.

  • Costs reduction.

This type of transport can be considerably cheaper than using only one method. You can take advantage of competitive rates and discounts offered by logistics service providers. Additionally, by optimizing routes and resources, costs associated with fuel, tolls, and downtime are reduced.

  • Greater security, less risk.

The risk of supply chain disruptions is minimized, if one mode of transport is affected by issues such as strikes or even adverse weather conditions, an alternative can be resorted to without completely stopping the movement of goods. In addition, the diversification of routes and modes of transport reduces exposure to specific risks and improves the security of shipments.

  • Access to international markets.

Multimodal transport facilitates access to global markets, this allows reaching remote destinations and diversifying commercial operations in different parts of the world. By having the ability to adapt to the requirements of each market, companies can expand their reach and take advantage of global business opportunities.

Regarding the challenges that multimodal transport entails, you can find:

  • Coordination and management of the supply chain.

One of the main challenges of multimodal transport lies in the coordination and management of the supply chain. When involving multiple actors and modes of transport, it is crucial to establish effective communication and proper synchronization of transport schedules. Efficient coordination ensures that shipments arrive on time and in good condition. In addition, the proper management of documentation, such as customs permits and transport documents, is essential to avoid delays and setbacks in the process.

  • Logistical complexity.

The use of different modes of transport adds complexity to the supply chain. Each mode of transport has its own specific requirements and regulations, which implies greater planning and coordination by companies. It is necessary to ensure compliance with customs procedures, packaging and labeling regulations, as well as transport regulations for each mode used. Understanding and complying with these regulations are essential to avoid legal problems and ensure smooth and efficient transportation.

  • Tracking and visibility.

Multimodal transport requires constant monitoring of the goods throughout the entire process. Lack of visibility can make it difficult to identify issues or delays early, impacting efficiency and customer satisfaction. Therefore, it is essential to have monitoring systems and information technologies that allow the monitoring and tracking of merchandise in real time. These tools provide visibility throughout the entire supply chain, allowing quick corrective action to be taken in the event of any mishaps.

At Newtral Argentina we have a real-time monitoring system that you are going to love

  • Interoperability and synchronization.

The interoperability between the different modes of transport and the synchronization of their operations are key elements to achieve efficient multimodal transport. Transportation systems must be able to work synchronously, ensuring a smooth transfer of goods from one mode to another. The lack of synchronization between the different actors involved, such as shipping companies, trucking companies and logistics service providers, can lead to delays, errors and higher operational costs. Collaboration and effective communication between these actors are essential to ensure a smooth execution of the multimodal supply chain.

In summary, multimodal transport offers numerous benefits in terms of efficiency and global reach in the transport of goods. However, it also presents challenges that need to be properly addressed. Efficient coordination and management of the supply chain, attention to logistical complexity, constant monitoring and visibility, as well as interoperability and synchronization between the different modes of transport, are key aspects to take full advantage of multimodal transport and overcome challenges that arise in the process.

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