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Multimodal and Transloading

24 Apr 2024

By Cadys Wang    Photo:CANVA

 

Exporting goods from Taiwan to the inland United States involves long-distance transport and complex logistics. Two primary methods used are multimodal transport and transloading. This article will discuss the applicability of these two modes in response to the current logistics situation.
 

Multimodal Transport
Multimodal transport typically involves placing goods in a container that can seamlessly transition from one mode of transportation to another without unpacking. This system simplifies the logistics process, minimizes handling time, and reduces the risk of damage during transport.
In typical multimodal scenarios, containers are shipped from Asian ports to U.S. ports and then transported inland by rail. This method is particularly suitable for high-volume goods. The use of sealed containers provides additional security and damage protection. While multimodal transport may be costlier, its reliability and safety make it the preferred choice for high-value goods like electronic products.

 

Transloading Transport
Transloading is transferring goods from one mode of transportation to another at a central hub. For instance, cargo shipped from Taiwan might be unloaded from a container ship at a U.S. West Coast port like Los Angeles or Long Beach. It's then taken to a truck warehouse and reloaded onto a local 53-cubic-foot dry van (DV) for final delivery to its inland destination.


Transloading provides flexibility for different modes of transport. It allows shippers to select the quickest combination for a specific need, enabling them to adjust their destination quickly based on the requirements of a distribution center.


Large retailers like Home Depot and Kohl’s also use transloading services to move goods from the port to the store.


Differences and Applications
The key difference between multimodal and transloading transport is how goods are handled during transport.


Advantages of Multimodal Transport
In multimodal transport, goods remain in the same container throughout delivery, reducing handling risks.
The main reasons for choosing multimodal transport include:
• High Security: Since goods remain sealed throughout the transport process, exposure to the external environment is reduced, thus lowering the risk of theft or damage.
• Transition Across Modes of Transport: Multimodal transport allows the transition from sea to land transport without opening the goods, which is crucial for long-distance transport.
• Reduced Risk of Damage to Goods: Multimodal transport avoids frequent unpacking and repacking, reducing the chance of damage to goods during operation.

 

Advantages of Transloading Transport
Here are the main advantages of transloading transport:
• Efficiency: Transloading speeds up the delivery process by separating the long sea journey from the shorter inland one. This allows businesses to take advantage of the efficiency of sea transport for the long part and the convenience of trucks for the final delivery.
• Flexibility: Transloading facilities often provide ample storage space, allowing businesses to store goods until they are ready for final delivery. This flexibility can be advantageous for companies dealing with changing delivery schedules or those aiming to meet just-in-time inventory demands.

 

Conclusion
The decision to choose a multimodal transport solution is based not only on the security needs of high-value goods but also on transport distance, cost, and risk factors. For long-distance and high-value goods, multimodal transport is usually safer and more efficient.


However, transloading may be suitable when flexibility or timeliness are crucial. In particular, freight companies have had to replace railway transport with trucks over the past two years due to congestion.
When deciding between multimodal transport and transloading, factors such as transport distance, cost, risk, and handling needs should be considered to select the most appropriate solution.

 

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