Difference between intermodal shipping and multimodal shipping
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The document distinguishes between intermodal and multimodal shipping, highlighting that intermodal involves multiple carriers under separate contracts, while multimodal operates under a single contract for all modes. Each method has its advantages, such as efficiency and tracking in multimodal and cost flexibility in intermodal. It also provides an overview of major shipping lines and their capacities in the industry.
Difference between intermodal shipping and multimodal shipping
- 1. Difference between Intermodal shipping and Multimodal shipping Getting the best transit time routing is not the same as getting the best total shipping cost. To obtain the best routing is not the same as getting the best total shipping cost. Using a combination of different transport carriers is sometimes better to achieve the best total shipping cost for door to door movements. However, it requires more logistics coordination and hands-on involvement. Using a single transport carrier to provide a door to door movement, may achieve the best routing. It requires less logistics coordination and paperwork. Intermodal is defined as the movement of cargo from origin to destination by several modes of transport where each of these modes have a different transport carrier responsible, each with its own independent contract. Multiple carriers during a single journey. Each leg of the shipment is be handled by a separate transport carrier. The Shipper will have several contracts, one with each transport carrier to handle their specific leg of the shipment. Multimodal is defined as the movement of cargo from origin to destination by several modes of transport where each of these modes have a different transport carrier responsible, However under a single contract or bill of lading. Single carrier during a single journey. The same transport carrier is responsible for moving the shipment in all legs, in all modes. In simple terms, Multimodal is using various modes of transport but with one transport bill of lading. The differentiation between multimodal and intermodal lies in the contract/ bill of lading and transport carrier responsibility / liability of the movement. Advantages of Multimodal transportation are associated with: a) Shipment tracking efficiency able to monitor with one transport carrier from door to door delivery; b) access to remote parts of the world with responsibility and liability of the movement with one transport carrier; c) efficiency in delivery time; and d) minimization of logistics coordination expenses of a shipper. Advantages of Intermodal transportation are associated with: a) Shippers can choose carriers to take advantage of lower rates for each transport leg; b) gain flexibility and specialized handing of loading and unloading goods at different ports; c) reduce their carbon footprint by choosing environmentally friendly carriers; d) increased security of the products being transported; and e) Shippers have more access to equipment and can better control capacity and selection of transit schedules. Regardless of your choice with Intermodal or Multimodal, Shippers require a transportation management system (TMS) to ensure door to door tracking visibility, ability to perform routing scenarios to determine the best overall total shipping cost with the best overall routing transit time. The transportation management system must have capabilities for coordination with / and between transport carriers and suppliers, along with freight rate / contract management.
- 2. Shipping Lines 1. A.P. Moller–Maersk Group Also referred to as Maersk, or Maersk Line, the A.P. Moller–Maersk Group is a Danish business conglomerate and the world’s largest container shipping company. Boasting over 89,000 employees worldwide with offices in 135 countries, the behemothic carrier has an armada of vessels (640), which includes the world’s second largest container ship by TEU capacity, the Madrid Maersk. Founded in 1904, Maersk has a TEU capacity of 3.4 million (16.3% share). 2. Mediterranean Shipping Company (MSC) MSC is a Geneva based Italian shipping company, known across the globe as a container shipping heavyweight and cruise liner operator (MSC Cruises). Founded in 1970, the company has expanded from a single vessel called Patricia, to a 511 strong fleet of container ships, with a capacity of 3 million TEU (14.7% share). 3. CMA CGM Group CMA CGM S.A. is a French shipping company which was founded in 1996 following the merger of Compagnie Générale Maritime (CGM) and Compagnie Maritime d'Affrètement (CMA). It has a rich history which can be traced back to 1851, and is now the third largest shipping company in the world. CMA CGM has 462 container ships and a TEU capacity of 2.3 million (11.1% share). 4. COSCO An acronym for China Ocean Shipping (Group) Company, COSCO is a state-owned Chinese carrier with headquarters in Beijing. In February 2016, the company merged with China Shipping Group to become the world's fourth largest carrier with 8.3% share. Today COSCO has a fleet of 312 container ships and a capacity of 1.7 million TEU. 5. Hapag-Lloyd Founded in 1970, Hapag-Lloyd originally formed following the merger of Amerikanische Packetfahrt-Actien-Gesellschaft (HAPAG) and Norddeutscher Lloyd (NDL). It has since merged with Compañía Sud Americana de Vapores (CSAV) in 2014, to become a German-Chilean owned conglomerate and the world's fifth largest shipping company. Today the company has 220 container ships, and a capacity of 1.5 million TEU (7.3% share).
- 3. 6. Evergreen Marine Corp. With headquarters in Taoyuan City, Taiwan, Evergreen Marine is the sixth largest shipping company in the world, with a capacity of over 1 million TEU (4.9% share). Founded in 1968, it has over 3,300 employees worldwide and a fleet of 194 container ships. 7. Orient Overseas Container Line (OOCL) Based in Hong-Kong, OOCL was founded in 1947 and was originally known as the Orient Overseas Line. It later changed its name to the Orient Overseas Container Line in 1969, and is now the seventh largest shipping company in the world. It has a capacity of 696,936 TEU (3.3% share) and 107 container ships, which includes the OOCLHong Kong, the world's largest cellular vessel (by TEU). 8. Yang Ming Marine Transport Corporation Based in Keelung, Taiwan, Yang Ming was founded in 1972 and is the world's eighth largest shipping company. It has a capacity of 592,805 TEU (2.8% share) and a fleet of 96 container ships. 9. Nippon Yusen Kabushiki Kaisha (NYK) A Japanese carrier and core Mitsubishi company, NYK boasts a TEU capacity of 573,045 (2.7% share) spread across 100 container ships worldwide. 10. Hamburg Süd Hamburg Süd operates 105 container ships across the globe with a capacity of 562,764 TEU (2.7% share). Based in Hamburg, Germany, the company was founded in 1871 as a joint-stock carrier by eleven merchant houses based in the city. Regional Trades weekly capacities Trans-Atlantic-172,429 TEU Trans-Pacific-538,806 TEU Feast-Europe-583,098 TEU
- 4. GRAPHS world's largest shipping companies by TEU (Twenty-foot Equivalent Unit), and their vast fleets of container vessels has of JUNE 2017