Intermodal and multimodal transportation use
two or more forms of transportation, such as the use of railways and semi-trucks, to carry goods
to a set destination. The difference between intermodal and multimodal transportation is through
how companies handle the transportation process.
In multimodal
transportation, one contractor handles the entire transportation process, from one mode of
transportation to another, until the product has arrived at its destination. For example, in
multimodal transportation, a single contractor may oversee the entire operation of a shipment of
electronics being shipped via airway from Europe to the United States and then via trucking from
the airport to the location(s) where the electronics will be sold in the United
States.
In intermodal transportation, more than one contractor may handle
different legs of the shipping journey. For example, one contractor may exist to handle the
logistics of shipping via railroads, while another contractor may deal solely in overseeing the
logistics of shipping via maritime shipping.
There are pros and cons with
choosing either form of shipping via more than one mode of transportation. With intermodal
shipping, a company can choose experts in each field of transportation to oversee the logistics
of specific shipping processes. However, there are more contractors to coordinate with and
multiple tracking procedures. With multimodal shipping, a company only has to coordinate with
one contractor for the entirety of the shipping process. However, there is less flexibility in
being able to pause the shipment and less ability to find the cheapest option because each leg
of the shipment process is included in the one price of the single
contractor.
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