High Ecommerce Demand and Maritime Delays Drive Air Freight Rates Higher
Priority buyers face increased invoice lines for air cargo as sea diversions force emergency shift to tarmac logistics.
Multimodal Shift
Network Optimization
The strategic transition of freight between different modes of transport optimizes the logistics network for speed and cost. A multimodal shift often aims to reduce the environmental impact of shipping by using more efficient long haul methods. This transition is defined by the change in the mode of carriage and does not include the simple transfer between two trucks.
Logical Driver
Rising fuel prices or changes in labor availability frequently push companies to seek more economical ways to move their goods. While rail transport is slower than trucking, it offers savings for heavy loads over long distances. Combining different modes allows a supply chain to remain flexible in the face of varying market conditions.
Shippers often select a mix of air and sea transport to balance the need for speed with the requirement for low freight costs.
Planning Requirement
Executing a change in transport mode involves complex scheduling to ensure that transfers at hubs are seamless and do not add excessive delay. Advanced software tools help logistics managers track cargo as it moves through different networks and different hands. The success of this strategy depends on the reliability of the connections between the various transport systems.
Infrastructure at rail heads and port terminals must be capable of handling the rapid transfer of standardized containers between different vehicles.