Travel and Hospitality
Multimodal logistics: integrating air cargo with other transport
Air freight moves less than 1% of global trade by volume, but it handles goods that make up about 35% of global trade value. This striking contrast shows why aircraft remain the first choice for vaccines, luxury wear, and smartphones. On the other hand, ocean liners, rail wagons, and trucks haul heavier, slower, and cheaper loads. When customers expect “now” and boards aim for net‑zero, the wiser question is no longer which mode is best, but how a multimodal transport strategy can work.
What is multimodal transport?
Multimodal transport is the use of a combination of different modes of cargo transport to deliver a shipment of goods across destinations. A single service provider takes legal responsibility for the shipment from origin to destination. Multimodal logistics come under a single bill of lading covering the entire journey, even though the freight changes vehicles along the way.
Because liability stays with a single entity, hand‑offs happen inside a tightly managed digital ecosystem. Booking data, customs filings, temperature readings, and GPS pings feed a shared control‑tower dashboard, so delays or temperature breaches trigger instant alerts rather than surprise penalties. Charges and insurance clauses are harmonised across every leg, sparing finance teams the task of reconciling multiple invoices or debating which carrier caused the damage.
When air alone still makes sense
Aircraft remain irreplaceable in a handful of high‑pressure scenarios:
- Life‑saving organs and temperature‑sensitive medicines that can spoil within hours.
- “Aircraft‑on‑ground” spare parts, where every extra minute knocks flights off schedule.
- High‑value electronics timed to global product launches.
- Emergency relief supplies after earthquakes, hurricanes, or floods.
In such moments time is greater than money—sometimes greater than life—so the higher cost and larger carbon footprint are acceptable. Outside this narrow band, an all‑air strategy can chip away at margins and sustainability scores.
Why blend air with sea, rail, and road?
The singular use of any cargo transport modality does not cut it for modern demands and environmental constraints. This is why multimodal transport has been rapidly adopted by all industries. The reasons for this are:
Cost control
Not every unit needs wings. Fashion houses, for example, often send bulk inventory by sea to a regional hub and fly only fast‑moving colours once demand becomes clearer. Moving the right goods at the right speed trims freight bills while keeping shop shelves full.
Lower emissions
Moving cargo by air generates far more carbon per tonne‑kilometre than sending the same load by vessel or train. Swapping the longest leg of the freight journey to a greener mode helps companies hit carbon emission targets without stretching delivery windows.
Resilience
Volcanic ash may ground flights, port strikes can stall vessels, and flooded highways can stop trucks. A multimodal logistics design offers alternative corridors like rail, road, or belly‑hold space on passenger jets. This lets planners reroute swiftly and avoid unpleasant surprises.
Inventory optimisation
Aircraft belly room rises and falls with travel demand. Companies can pre‑positioning buffer stock via slower modes and restock fast-selling items by air. This way, planners reduce the capital tied up in warehouses and still respond to sudden spikes in orders.
Unified compliance
One multimodal contract aligns Incoterms, insurance, and liability. A single data stream also drives automated document checks and politically exposed person list screening, lowering the odds of sanctions breaches or AML penalties.
Building a winning multimodal transport strategy
Start with context
Begin by mapping current flows—lead times, landed costs, and emission factors. A simple heat map reveals which stock‑keeping units require air and which can wait a little longer.
Segment by value and urgency
Time‑critical, high‑value products may still fly most of the distance. Medium‑value items can ride rail or ocean for the long haul, then switch to air for the final stretch.
Choose technology that talks
Look for platforms able to accept EDI feeds from airlines, API pushes from ports, and IoT sensor data from trucks. End‑to‑end visibility is the glue that stops a multimodal transport plan from unravelling.
Align contracts and incentives
Service‑level agreements work best when they reward on‑time delivery and discourage avoidable emissions. Finance teams gain cost certainty, while procurement secures leverage for future negotiations.
Measure, learn, iterate
Business‑intelligence dashboards can track delays, carbon output, and cost per unit. Sharing wins and misses at regular intervals helps teams adjust routes, tweak mode splits, and keep improvement continuous.
How can Infosys BPM help?
Infosys BPM delivers end‑to‑end airline cargo support, covering booking, space optimisation, ULD inventory, Cargo IQ reporting, AWB verification, quote and rate management, contract and claims management, operational analytics, and revenue accounting. AI‑driven tools such as Infosys Nia streamline load planning, flight capacity analysis, and customer support, reducing costs, improving efficiency, and boosting satisfaction across global networks through predictive data insights.
