Multi modal transportationhas become a cornerstone of efficient, cost-effective, and resilient supply chains. By combining modes like road, rail, sea, and air into a unified network, businesses can enhance delivery speed, reduce costs, and improve adaptability. When paired with last-mile delivery optimisation and sustainable logistics practices, multimodal strategies boost operational performance and support environmental goals.
This article explores the latest trends, seamless integration strategies, and sustainability-focused innovations defining multi modal transportationin 2025.
what is multimodal transportation?
Multi modal transportationrefers to the coordinated use of two or more transportation modes within a single supply chain (under a single contract) to move goods from origin to destination. It contrasts with intermodal transport, which also uses multiple modes but involves different contracts and handling at each transfer point. For example, cargo might travel by ship for long distances, then switch to rail for inland transit, and finally be delivered by truck for last-mile delivery, all organised under one logistics operator.
key benefits of multimodal transportation
Multi modal transportationunlocks a range of strategic advantages, from cost savings and flexibility to sustainability and improved capacity management.
cost efficiency
Multimodal transport cuts logistics costs by up to 15% by combining fuel-efficient modes like rail and sea for long hauls with flexible road transport for last-mile delivery, optimising routes and developing economies of scale.
flexibility and reliability
By diversifying transportation modes, multimodal logistics creates resilient supply chains invulnerable to disruptions, such as traffic congestion or weather delays. Alternative routes and scheduling flexibility improve on-time delivery rates and customer satisfaction.
environmental sustainability
Shifting freight from road to rail or sea can reduce greenhouse gases by up to 65%, supporting corporate sustainability goals and global climate targets. The use of electric vehicles and cleaner fuels further enhances the environmental benefits.
enhanced capacity management
Efficient load distribution across different modes prevents bottlenecks and maximises cargo capacity. Multimodal networks are scalable, adapting easily to fluctuating shipment volumes and diverse cargo types.
strategies for seamless multimodal integration
To maximise the value of multimodal transportation, integration is key. Here are four strategies logistics leaders are using to streamline operations:
integrated technology systems
Transport management systems enable real-time tracking, route optimisation, and efficient scheduling. Internet of Things (IoT) sensors monitor cargo conditions, while blockchain ensures secure, transparent transactions and traceability across the supply chain.
strategic partnerships
Building strong collaborations with carriers, logistics providers, and infrastructure operators ensures consistent service quality and resource sharing. Long-term agreements and shared data improve coordination and reduce operational costs.
infrastructure investment
Developing intermodal terminals and upgrading warehousing facilities are critical to smooth cargo transfers between modes. Investments in charging stations for electric trucks and trains support the growing electrification of logistics, enhancing efficiency and sustainability.
regulatory compliance
Adhering to customs, safety, and environmental regulations for each mode of transport prevents delays and legal issues. Understanding international trade rules and standards is vital for seamless multimodal operations.
optimising last-mile delivery in multimodal systems
Even the most efficient multimodal strategy can fall short without robust last-mile delivery optimisation. As the final leg in the logistics chain, last-mile delivery often determines the customer experience, and it’s where inefficiencies and costs tend to spike. To address this, businesses are investing in innovative solutions.
route optimisation
Using AI-powered route planning software helps calculate the most efficient delivery routes by considering traffic, weather, vehicle capacity, and delivery windows. This reduces travel time, fuel consumption, and operational costs.
real-time tracking and visibility
GPS tracking provides end-to-end visibility, allowing businesses to monitor shipments and quickly respond to disruptions. Customers benefit from live tracking and accurate estimated times of arrival, enhancing satisfaction and reducing support inquiries.
predictive analytics
Machine learning algorithms forecast potential delivery issues, enabling proactive adjustments to routes and schedules. Predictive insights also guide resource allocation, such as deploying additional drivers during peak demand periods.
smart parcel lockers and pickup points
Offering flexible delivery options like smart lockers reduces failed delivery attempts and consolidates drop-offs. This approach lowers last-mile costs and improves delivery reliability.
sustainable logistics practices in multimodal transportation
The industry is adopting several eco-friendly innovations:
- Electric and hybrid vehicles: The integration of electric trucks, vans, and cargo scooters in last-mile delivery drastically cuts emissions and noise pollution.
- Alternative fuels: Biodiesel, renewable natural gas, and hydrogen-powered trucks are increasingly used for long-haul freight to reduce CO₂ emissions.
- Route optimisation with AI: Smart routing minimises unnecessary mileage and fuel consumption, lowering the carbon footprint of delivery fleets.
- Electrification of rail and road: Electric trains use significantly less fuel than their diesel counterparts, reducing emissions by over 80% in some regions. Expanding charging infrastructure supports the adoption of electric vehicles across modes.
how can Infosys BPM help with last-mile delivery optimisation?
Infosys BPM empowers logistics providers to streamline multi modal transportationthrough advanced digital capabilities, integrated supply chain visibility, and AI-driven route optimisation. With transport management solutions, customs compliance, and last-mile coordination, Infosys BPM helps businesses achieve up to 20% cost savings and 30% faster delivery cycles. By enabling real-time tracking and predictive analytics across transport modes, Infosys BPM supports greater flexibility, efficiency, and sustainability.
