What Is Multimodal Transport? Concepts, Detailed Procedures

1. What is multimodal transport?

Multimodal transport is defined in Clause 1 and Article 2 of Decree 87/2009/ND-CP as a form of transporting goods with at least two different modes of transport. In particular, the carrier is responsible for the entire transportation process, from receipt of goods at the destination to delivery at the destination. A multimodal transport operator (MTO) is the person responsible for transporting goods from the place of receipt to the place of delivery.

The multimodal transport process is carried out on the basis of a multimodal transport contract between the carrier and the shipper. The carrier is the person responsible for transporting goods from the place of receipt to the place of delivery by at least two different modes of transport. Multimodal transport can be carried out within Vietnam or abroad.

2. What are the characteristics of multimodal transport?

Multimodal transport can be carried out within and outside Vietnam.

This form of transportation has outstanding advantages, such as:

• Goods will be packed in standard loading units and must not be opened when changing the mode of transport.
• Ensure goods are transported continuously, from the starting point to the final destination.
• Protect goods safely throughout the transportation process, even when changing means of transport.
• Minimize documentation procedures and manage costs, creating simplicity and efficiency in the transportation process.
• Reduce costs and save time and effort for shippers.
• More convenient for tracking goods.

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3. The role of multimodal transport today

This mode of transport has many outstanding advantages compared to traditional modes of transport, bringing many benefits to the economy and businesses.

• First: multimodal transport is one of the important factors contributing to supporting economic development. This method helps create transportation links between industries, from production to distribution and consumption. Thanks to that, goods are transported smoothly and quickly, contributing to promoting the overall economic activity of a country or region.
• Second: this mode of transportation helps increase the competitiveness of businesses. From there, it helps businesses optimize shipping processes and reduce costs. Ultimately, it will enhance competitiveness in terms of price and quality.
• Third: This form of transport allows for the transport of large volumes of goods. From there, it is possible to combine many different means of transport, helping to expand the transport network and meet the needs of large-scale freight transport.
• Fourth: multimodal transportation helps businesses reach the market faster. This method helps businesses take advantage of an effective transportation network and quickly reach domestic and foreign customers. Thereby promoting economic development and international trade and expanding business opportunities.

4. Multimodal forms of transport in the world

4.1. Road-Air transport model

Flexibility and speed are the outstanding advantages of road transport. Therefore, cars are often used to gather goods to the airport or from the airport to transport goods to other locations. Car transport performed at the beginning and end of the transport process in this way is highly flexible, meeting the needs of collecting and concentrating goods at the airport to serve the routes. fly long distances.

4.2. Sea – Air transport model

Air transport combines the advantages of sea transport in terms of economy and the advantages of road transport in terms of speed, making it suitable for transporting high-value goods such as electronics and time-sensitive goods. high-end services such as clothes, toys, and shoes.

Goods, after arriving at the port by sea, can be transported by air to be transported quickly to the recipient inland. Transportation by other means is not suitable for seasonal or high-value goods.

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4.3. Road transport model combined with sea and inland waterways (Road - Sea)

The multimodal transport model by road, sea, and inland waterway is the most popular transport model for transporting import and export goods. Goods are transported to the exporting country's seaport by rail, road, or inland waterway.

Then, the goods are transported by sea to the port of the importing country. From the port, goods are transported to recipients inland by road, rail, or inland waterway. This model is suitable for goods carried by containers, which are large in volume and heavy in weight and do not require urgent transportation time.

4.4. Land Bridge model - Land Bridge

According to this model, goods are transported by sea across oceans to ports on a certain continent. Then, the goods will be transported by a land transport method, such as rail, road, etc., to another port on another continent. Finally, the goods will be further transported by sea to their final destination.

In this method of transportation, the land transport stage plays an important role as a bridge connecting two seas or oceans. This transport route helps goods move from one continent to another smoothly and quickly.

4.5. Rail and road transport model (Rail - Road)

The combination of the safety and speed of rail transport with the mobility of automobile transport created a new method of transport that was widely used in the Americas and Europe. In this method, goods are packaged in trailers and then towed by tractors to the terminal. At the station, the trailers are loaded onto train cars and transported to the destination station. Upon arrival at the destination station, the trailers are again pulled down by a tow truck and transported to the delivery location for the recipient.

4.6. Mixed transport model - 2RIS

The mixed transport model (2RIS) is a combination of rail, road, inland waterway, and sea transport modes. Goods are brought to exporting countries by rail, road, or waterway. Then, the goods are transported by sea to the port of the importing country. Finally, the goods are transported to the recipient inland by road, rail, or inland waterway transport. The 2RIS model is suitable for goods carried by containers on shipping routes that do not require urgent transit times.

4.7. Some other models

Mini Bridge and Micro Bridge are two forms of multimodal transport combining sea transport and rail transport. Mini Bridge transports containers from one country's port to another country's port, then transports them by rail to a second port city in the destination country. Micro Bridge is similar to Mini Bridge, except that the final destination is not a port city but an industrial park or commercial center inland.

5. Conditions for international multimodal transport business

Vietnamese enterprises, cooperatives, and foreign enterprises investing in Vietnam are only allowed to conduct international multimodal transport business after fully meeting the following conditions:

• Financially, maintain minimum assets equivalent to 80,000 SDR, have an equivalent guarantee, or have an alternative financial plan according to the provisions of the law.

• Regarding insurance, there is multimodal transport professional liability insurance or an equivalent guarantee.

Enterprises located in ASEAN member countries that have multimodal transport agreements or have signed international treaties with Vietnam can only do international multimodal transport business after meeting all conditions. after:

• Regarding license, have a Certificate of International Multimodal Transport Business Registration or equivalent documents issued by the competent authority of that country.

• Regarding insurance, there is multimodal transport professional liability insurance or an equivalent guarantee.

6. Types of multimodal transport documents

A multimodal transport document is a document issued by a multimodal transport operator confirming that the multimodal transport operator has received goods for transportation and committed to deliver the goods in accordance with the terms of the contract. multimodal transport.

Multimodal transport documents can be issued in negotiable or non-negotiable form.

• A multimodal transport document in negotiable form may be transferred to another person by presentation, by order, or by order of the person named in the original document.

• Multimodal transport documents in non-negotiable form can only be delivered to the consignee specified in the document.

Domestic multimodal transport is governed by the provisions of Vietnamese law. Relevant parties may agree on the types of multimodal transport documents used in domestic multimodal transport.

7. What is the content of multimodal transport documents?

The main content of multimodal transport documents is:

• General natural characteristics of the goods, including:

  • Perishable and dangerous

  • Number of packages or pieces

  • Express weight or quantity in many different ways.

  • External condition of the goods.

• Name and headquarters.

• Name of the consignor.

• Recipient's name.

• Specific location and date of receipt of goods

• Delivery location.

• Time limit and location for return delivery

• Type of multimodal transport document: transferable or non-transferable.

• Signatures of both parties

• Transport fee:

  • For each mode of transport, if agreed upon by the parties involved,.

  • The consignee is responsible for paying the freight; the currency of the freight payment is clearly stated on the multimodal transport document.

  • Shipping costs can be expressed in different ways, but the consignee is still responsible for payment.

• Multimodal transport documents must clearly state the intended route, mode of transport for each leg, and transshipment locations, if known, when the document is issued.

• Related parties can agree to add other details to multimodal transport documents, but they must be in accordance with the provisions of the law.

8. Procedures for granting multimodal transport business licenses

According to Decree 144/2018/ND-CP, decrees on multimodal transport are amended and supplemented as follows:

Enterprises, cooperatives, and foreign enterprises investing in Vietnam that meet the provisions of Clause 1 and Article 5 of this Decree submit an application for an international multimodal transport business license. Documents can be submitted directly to the Ministry of Transport, by post, or in other appropriate forms according to regulations. Records include:

• Application for a license according to the form specified in this decree.

• Certified copy of the business registration certificate, investment registration certificate, or equivalent documents as prescribed by law.

• The financial statements of enterprises and cooperatives must be audited by an independent audit organization. In the event that an enterprise or cooperative does not perform an audit, it must be guaranteed by a banking institution, other organization, or individual regarding the accuracy and truthfulness of its financial reports, or there must be an alternative financial plan approved by a competent state agency.

According to the provisions of Clause 2 and Article 5 of Decree 87/2009/ND-CP, enterprises eligible for international multimodal transport business licenses need to submit a set of application documents. Records include:

• Application for an international multimodal transport business license according to the form specified in Appendix I of this Decree.

• Copies of documents issued by the competent authority of that country prove that the enterprise is qualified to do international multimodal transport business.

• Enterprises must have a copy of the International Multimodal Transport Business Registration Certificate or equivalent documents issued by the competent authority of that country.

• Enterprises must have a multimodal transport professional liability insurance contract or an equivalent guarantee.

In case the application dossier for an international multimodal transport business license does not meet the prescribed requirements, the Ministry of Transport is responsible for responding to the enterprise in writing, clearly stating the reason, within 3 working days from the date of receipt of the application.

Within 5 working days from receipt of complete and valid documents, the Ministry of Transport shall issue an international multi-modal transport business license according to the form specified in Appendix III of this Decree to the enterprise.

The international multimodal transport business license has a validity period of 5 years from the date of issue.

During the validity period of the International Multimodal Transport Business License, if there is a change in one of the contents stated in the license, the international multimodal transport operator must carry out procedures to request a license. Return the license as prescribed in Article 7 of Decree 87/2009/ND-CP.

Above is all the information to answer the question of what multimodal transport is that you can refer to. Dolphin Sea Air hopes this will be useful information for you. If you have any questions, don't hesitate to contact us via our hotline or website.

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