How a Multimodal Freight Delivery Route Is Planned

International shipping is not always possible using a single mode of transportation. This is particularly evident on long routes, when cargo is shipped from China, other Asian countries, or remote regions and must be delivered directly to the recipient’s warehouse in Ukraine.

For example, goods are first picked up by truck from the factory, then the container is transported to a seaport and loaded onto a ship. Upon arrival at a European port, the shipment may continue by rail, with the final few hundred kilometers covered by truck once again.

On a map, this process looks quite simple:

truck → port → sea → European port → rail → truck → recipient

But the real complexity begins between these stages. The ship must arrive on time, the container must clear terminal handling, the next mode of transport must be available, and the documents must be ready for the cargo’s onward journey. If one segment falls behind schedule, it can affect the entire subsequent chain.

Therefore, a multimodal delivery route must be planned as a single, integrated whole. It’s not enough to simply find cheap ocean freight, rail, and road transport separately—it’s crucial that all these modes work together seamlessly.

We’ve already discussed separately how multimodal transportation differs from intermodal transportation. Here, we’ll focus on the practical aspects: how the route is selected, why the cheapest port isn’t always the most cost-effective, where delays most often occur, and what makes up the final cost of transportation.

The route must be planned all the way to the final recipient

When shipping a container from China, ocean freight usually catches your attention first. It makes sense: it’s the main and longest leg of the journey. But choosing a route based solely on the price of ocean freight is one of the most common mistakes.

Suppose a shipping line offers delivery to one European port for 1,900 USD and to another for 2,100 USD. At first glance, the first option is obviously more cost-effective. But the route doesn’t end upon the container’s arrival. It still needs to be processed at the port, picked up from the terminal, and delivered to Ukraine. And here it may turn out that the overland leg from the first port is significantly more expensive, rail shipments are less frequent, or terminal fees are higher. As a result, a savings of 200 USD on ocean freight turns into an additional 400–500 EUR in the subsequent stages.

Therefore, calculating multimodal transportation is best done on a “door-to-door” basis. Ultimately, what matters to the customer is not how much the ship or train cost separately, but the total cost of delivery to their warehouse. It is for this very reason that, when planning a route, sea transport, terminals, the overland leg, transit times, and possible additional costs are all compared simultaneously.

Cargo characteristics determine the possible transport scheme

Before choosing a port and booking transport, it is necessary to understand exactly what needs to be transported.

For standard palletized cargo, a regular 20- or 40-foot container may suffice. For industrial equipment of non-standard height, an Open Top or Flat Rack container may be required. For dangerous goods, it is necessary to consider the restrictions of shipping lines and terminals, and for temperature-sensitive products—the ability to maintain the required conditions throughout the entire supply chain.

Even a slight difference in cargo characteristics can change the route. For example, a certain type of container may be transported by sea without any issues but face restrictions on a specific rail service. In that case, after arriving at a European port, you’ll have to find another option for onward delivery.

Accurate weight, dimensions, number of units, packaging, Incoterms conditions, and special requirements are needed for more than just calculating the rate. The very structure of the multimodal route is determined based on this data.

The more accurate the information is before booking, the less likely it is that it will become apparent during transit that the chosen option is unsuitable for the specific cargo.

How to Choose a Port and the Main Transport Leg

The nearest port will not necessarily be the most convenient, nor will the cheapest ocean service be the most cost-effective. When selecting a port for container delivery, you must consider what will happen to the cargo upon arrival. How convenient is it to transport the cargo from there toward Ukraine? Are there regular rail departures? What is the distance of the overland leg? How does the terminal operate? How many transshipments will there be along the maritime route?

For example, one port may be geographically closer to Ukraine, but trains depart from there only once a week. Another is located farther away, but the rail service runs several times a week and there is good access to road transport.

This is especially important when a vessel’s ETA changes. If there is a short interval between train departures, a two-day delay for a container is not critical. If the train runs once a week, those same two days could mean an additional five or six days of waiting.

The same applies to the ocean route itself. A direct connection is usually easier to predict than an option with multiple transshipments. When transshipping at an intermediate port, the container depends on the next vessel, so a delay at a single connection point can significantly increase the total transit time.

Ocean container shipping is evaluated not only based on the rate and the stated transit time. It is necessary to see the entire route of the container and understand how convenient it is to continue the journey beyond a European port.

The next leg of transport is prepared even before the vessel arrives

One of the key features of high-quality multimodal logistics is that the next leg of the route is planned in advance.

While the container is at sea, the logistics specialist monitors the ETA and simultaneously prepares the land leg of the journey. If rail transport is planned after the port, the train schedule, availability of space, and the time buffer between the ship’s arrival and departure are checked. If the container is to be transported by truck, the estimated timeframe for pickup and the availability of vehicles are determined in advance.

An inefficient process looks like this: the container arrives at the port, and only then does the search for a truck or space on a train begin. In such a case, the cargo may sit idle at the terminal for several days simply because the next stage of the journey was not prepared.

Therefore, the coordination of different modes of transport is one of the most important components of the entire shipment. It is important not only to ensure each leg of the journey but also to ensure that there are no unnecessary delays between them. At the same time, the schedule must always include a reasonable time buffer. A vessel’s ETA is a planned date, not a guarantee of arrival accurate to within a few hours.

What happens if one leg of the journey is delayed

Suppose a ship is scheduled to arrive at a European port on September 10, and a rail shipment is already scheduled for September 12. This allows sufficient time for unloading and terminal handling of the container. However, the actual arrival is postponed to September 13.

The ship was only three days late, but the train has already departed. If the next departure is on September 18, the actual delay for the entire shipment will be significantly longer than the initial three days. This is exactly how a chain reaction occurs in multimodal logistics: a delay in one stage affects all subsequent stages of the route.

In such a situation, the original plan does not necessarily have to be adhered to at all costs. A logistics specialist can compare waiting for the next train with an alternative road shipment from a European port. If the road shipment costs a few hundred euros more but avoids a week-long wait and additional terminal fees, it may prove to be the more rational solution.

Therefore, a multimodal route must remain flexible. Its goal is not to stick to the original plan at all costs, but to deliver the cargo with the optimal balance of cost and time.

Terminal time also costs money

One of the risks of such a route is the time a container spends between individual transport legs. Upon arrival at the port, the container must be unloaded, processed, and prepared for further release. If the train or truck is available on time, this stage goes relatively smoothly. But in the event of a delay, the situation changes.

There are specific free periods for container equipment and terminal storage. Once these periods expire, additional costs may arise related to demurrage, detention, or storage—depending on the specific terms of the shipping line and the terminal.

Therefore, you shouldn’t wait until a container has been at the port for several days to check the free time. It’s best to clarify these timeframes before the vessel even arrives.

The same applies to documents. If a container is already ready for release but an issue is found in the invoice, packing list, or other documents, the cargo is physically ready to move on, but the shipment is effectively halted.

For this reason, customs clearance and document verification must be integrated into the overall transportation schedule, rather than left to the last minute.

Why It’s Essential to Calculate the Full Door-to-Door Cost

For a multimodal route, the price of a single leg of transport means little without considering other costs.

Let’s consider two scenarios.

• In the first scenario, ocean freight costs 1,900 USD, but upon arrival, there are higher terminal fees and an expensive overland leg. The total delivery cost is, for example, 3,800 USD.
• In the second scenario, ocean freight costs 2,100 USD, but the port is more convenient for onward transport, terminal charges are lower, and the overland leg is cheaper. The total cost is 3,500 USD.

This results in a situation that seems paradoxical at first glance: more expensive ocean freight actually makes the entire shipment 300 USD cheaper.

Therefore, the total cost of door-to-door delivery must take into account the entire route: the first mile, the main leg, terminal operations, subsequent rail or truck delivery, the last mile, and container-related costs.

The return of the empty container must also be considered separately. After unloading at the recipient’s location, the equipment usually needs to be returned to an agreed-upon location. If the depot is located far from the warehouse, this can significantly affect the cost of the final truck segment of the route.

How to Choose the Truly Optimal Route

The cheapest option isn’t always the best either.

Let’s say one route costs $3,500 and takes about 50 days. Another costs $3,750 but delivers the cargo in approximately 38 days.

If standard raw materials are being transported and the company has sufficient inventory on hand, the first option may be entirely reasonable. But if the container holds components needed to launch a production line, those twelve extra days could cost the business far more than the difference in shipping costs. Therefore, when choosing the optimal delivery route, it’s essential to evaluate cost, time, and reliability simultaneously.

In addition, it’s helpful to have a contingency plan. If a container misses a train—can rail transport be replaced with trucking? If a shipping service is regularly delayed at a transshipment port—is there a more direct option? If a particular port is inconvenient for onward transport—can the next shipment be routed through a different one?

This does not mean you need to book multiple routes in advance. It is important to understand the alternatives and be able to quickly reorganize the supply chain if the situation changes.

A multimodal route only works as a single chain

When considering transportation as a whole, the logic is quite straightforward: first, cargo data is collected and route options are compared; then, ports and transport segments are selected, the total cost is calculated, and a booking is made. While the cargo is traveling by sea, the next segment is prepared. After arriving at a European port, the container continues its journey by rail or truck, goes through the necessary procedures, and is delivered to the recipient.

But the effectiveness of this system does not depend on the number of modes of transport involved. You can find a competitive ocean freight rate, an inexpensive train, and a reliable truck, but still end up with a poor result if there are prolonged delays between them. Therefore, effective organization of multimodal delivery is, first and foremost, about managing the entire chain: costs, timelines, connections, and potential deviations from the original schedule.

A good route should provide the customer with answers to four questions: how much the entire shipment will cost, when the cargo will actually arrive, where potential risks lie, and what can be done if the original plan changes. It is only then that the separate sea, rail, and road segments become a single, managed route from the shipper to the consignee.

FAQ

Why shouldn’t you choose a route based solely on the cost of ocean freight?

Because after the ocean leg, there are still terminal operations, rail or road segments, delivery to the consignee, and container return. Cheap ocean freight doesn’t always mean cheap transportation overall.

How is a port selected for a multimodal route?

Factors considered include the cost of ocean freight, the schedule, the number of transshipments, terminal capacity, the frequency of subsequent departures, and the cost of delivery from the port to the final recipient.

When should transportation after the port be arranged?

Preferably while the vessel is still in transit. By the time the container arrives, it should already be clear how and approximately when it will continue its journey.