About Multi Modal Transportation and How freight charges calculated based on that

The single consolidated freight amount includes freights charged by all modes of transport involved from the Point of Shipment to the Point of Destination. The consignment moves through different modes of transport (i.e) rail, road, ship, inland waterways or sometimes by air also. This is called multi modal transport or Integrated Transport. This system has been developed and used in all industrialized countries like the USA, European Union, Japan, Australia etc.,


The most outstanding contribution of containerization is the suitability and capability of containers for Door-to-Door Transportation internationally. A containerized shipment can be made complete in all respects from one interior point(consignor's premises) in one country to an interior point (consignee's premises) in another country under a single contract, single freight and single document (ie)combined transfer document.

Multi Modal Transportation Document

• It is a contract for the transportation of goods by multi modal transportation.
• It is a negotiable document unless it is marked non-negotiable at the option of the consignor.
• It is a Document of Title on the basis of which the holder can take delivery of the goods covered by it

The concerned parties who have commercial interest and be governed by the document once it is executed are; the Multi Modal Transport Operator, the Consignor, the Bankers, the lnsurers.

The Multi Modal Transport Operator shall be liable for losses resulting from any loss of or any damage to the consignment and delay in the delivery of the consignment. The MTO will be responsible during the period from which he takes charge of the goods till its delivery.

COMBIDOC and FIATA Bills of Lading

There are two internationally accepted documents in the Multi Modal Transportation viz COMBIDOC evolved by the Baltic International Council (BIMCO) and Freight Forwarders Bill of lading [FBL] evolved by the International Freight Forwarders Association (FIATA). The COMBIDOC is generally used by vessel operating MTOs while FBL is used by non-vessel owning NVO MTOs - mostly Air Sea Freight Forwarders.

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