How Businesses Can Manage Changing Freight Demand With Multimodal Transportation

Most companies have an idea of how much cargo they expect to move each month. But actual shipments depend on customer orders, production, seasonality and market conditions.

Suppose a factory usually sends ten containers a week. If that number suddenly becomes eighteen, relying only on the usual truck fleet may create a problem. Extra vehicles may be harder to find and last-minute bookings can come at a higher rate.

A drop in demand brings a different issue. A route arranged for a high volume of cargo may not remain economical when only a few containers are moving.

This is why transportation planning needs some flexibility rather than being built around one fixed pattern.

Multimodal transportation allows a business to look at the journey in separate parts.

For instance, cargo leaving a factory in North India can move by road to an inland terminal and then continue towards a gateway by rail. The road leg provides flexibility for pickup, while rail can handle a suitable longer-distance movement.

That arrangement may work well for a regular container shipment. A small urgent consignment may need a different solution altogether.

The point is not to use every available transport mode. It is to have the option of changing the combination when the cargo or business requirement changes.

A company should consider what it is moving before deciding how it should move it.

For larger volumes travelling over longer distances, rail transport can be considered where the cargo and route are suitable. It can also be useful when road capacity becomes difficult to secure.

Urgent cargo has a different priority. If a production line is waiting for a critical component or an overseas customer needs a shipment quickly, air cargo services may be considered. The higher cost needs to be weighed against the cost of waiting.

Routine container cargo may be better suited to a road-and-rail combination.

In other words, the transport plan should follow the shipment rather than the other way around.

Freight quotations can be misleading when looked at in isolation.

A route may have a lower transport rate but involve longer waiting at an intermediate point. A container could miss a cut-off, stay at a facility for extra days or miss a planned sailing.

Once those things happen, the original savings may not look like much.

Before selecting a route, businesses should consider:

• Freight and handling charges
• Availability of trucks and containers
• Transit time
• Storage and waiting costs
• Port cut-off timings
• Delivery commitments
• Chances of missed connections
• Reliability of the route

This is particularly important when freight volumes change quickly. A route that works at normal volumes may not be the most practical option during a busy period.

Waiting for a capacity problem to appear is rarely the best time to look for another solution.

Businesses that experience seasonal demand can identify possible alternatives beforehand. A company that normally moves cargo by road can check whether rail transport is suitable for some long-distance shipments.

It can also work out which shipments genuinely need faster movement and where air cargo services could be justified.

This does not mean keeping several transportation arrangements active for every shipment. It simply means knowing what options are available and what conditions would make each one useful. That information can save valuable time when order volumes suddenly increase.

For companies based away from the coast, the journey to the port can be a major part of the logistics operation.

Cargo first has to leave the factory or warehouse. Depending on the location, it may then travel a considerable distance before reaching the gateway.

An inland terminal can provide a link between this inland movement and the wider freight network. With road and rail connections available, businesses have more scope to decide how suitable cargo should travel.

This matters when freight demand changes.

If road capacity becomes tight, a suitable rail option may provide another way forward. If the shipment is smaller or needs a different schedule, roads may remain more practical.

Looking at the entire movement gives a better picture than comparing individual transport rates.

For businesses in North India, Sanjvik Terminals at Bawal, Haryana, provides an inland logistics link for EXIM cargo.

The terminal has access to NH-48 and NH-71 and rail connectivity linked with Indian Railways and the Western Dedicated Freight Corridor. It also connects towards gateways such as Mundra, Pipavav and JNPT. 

For an exporter or manufacturer, this connectivity can be useful when deciding how containers should move towards a gateway.

Depending on the shipment, road can handle one part of the journey while rail is considered for another. The final choice will depend on the cargo, volume, destination, schedule and cost.

The important part is having a practical inland connection that gives businesses another option when their usual freight arrangement becomes difficult to manage.

There is a temptation to build a complicated transport network in the hope that every possible problem will be covered.

That is not necessary.

A more practical approach is to know which shipments can be moved differently when circumstances change. A business may continue using road for most of its cargo while considering rail for suitable long-distance movements. An urgent shipment may be handled differently when the delivery deadline leaves little room for delay.

That is where multimodal transportation can prove useful.

It gives businesses room to adjust without having to redesign their entire logistics operation every time freight demand changes. The best route is not always the same route. It can change with the shipment, the season and the business requirement.

1. Can multimodal transportation help when freight demand increases suddenly?

Yes. Businesses can use different transport modes for suitable parts of the journey, giving them another way to handle additional cargo when their normal capacity is under pressure.

2. When is rail transport worth considering?

Rail transport can be considered for suitable cargo travelling longer distances. It can be particularly useful when shipment volumes are regular or road capacity is limited.

3. When do air cargo services make sense?

They can be considered when delivery speed is more important than the lowest freight cost. This may include urgent components, high-value goods or consignments with tight deadlines.

4. Does multimodal transportation guarantee lower logistics costs?

No. The benefit may come from better use of available capacity and fewer delays rather than a lower rate for every part of the journey. Businesses should compare the complete cost.

5. How can an inland terminal help when freight demand changes?

An inland terminal can connect cargo with road and rail networks and provide a link towards gateway ports. This gives businesses another option when consignment volumes, capacity or delivery requirements change.