As they continue to grapple with supply chain disruptions, labor shortages, rising freight costs and other uncertainties, companies need reliable logistics partners that can manage more than just one freight mode or transportation option. By serving as “one stop shops” for most of these companies’ transportation needs, multimodal partners help shippers work faster, save money and manage issues like capacity crunches.
“There’s a ‘new order’ evolving in the logistics and transportation arena, one that’s amplifying the challenge of securing capacity, yet one that will highlight the value of having a shrewd logistician at the helm of a company’s shipping decisions,” John D. Schulz wroteites in SupplyChain247. “
By adopting a “modal agnostic” mindset—effectively seeking capacity when and where it makes the most economic sense for their operations—Schulz says companies can potentially save millions of dollars in transport, warehouse and shipping costs. This is critical at a time when the CSCMP is reporting slow growth (GDP growth of between 2.5 percent and 4 percent), higher unemployment levels (7.5 percent in the U.S.), and higher reliance on part-time workers during slower job creation.
What is Multimodal Logistics?
Multimodal logistics and transportation providers use a selection of different carriers and modes to move freight. They handle the end-to-end process—from pickup at origin to delivery to final destination—regardless of how many different transportation providers are involved. If any challenges emerge during the process, shippers have a single point of contact for problem resolution.
According to GlobalTrade, multimodal transport combines at least two different modes of transport, from the departure of production units to their arrival as close as possible to the final consumer. The transfer takes place without load breakage since the same loading unit (the container) remains the same for the entire duration of the transport of the goods.
GlobalTrade says some of the key benefits of working with a multimodal partner include (but aren’t limited to):
- Improved delivery times
- Increased security of the goods
- Optimization of costs related to the transport of consumer goods
- Improved load capacity, which is higher than that of road transport
- Better environmental sustainability
At Odyssey Logistics, our four core divisions come together to form the ideal multimodal partner for shippers across all industries. By combining intermodal; transportation and warehousing; managed services; and freight forwarding under one roof, Odyssey helps shippers leverage one-stop-shop logistics and transportation services and start taking advantage of the many benefits outlined in this blog.
