Multi-Modal Transport Document

Multi-modal transport refers to the transportation of goods involving at least two different means of transport. The aim of MMT is to transport goods in minimum time with minimum cost from origin to destination, under a combined tran contract.

Though the overall prices may be high, the MMT is preferred as it is time saving and convenient for shippers.

Multi-modal transport helps in achieving the following:

1 Reduction in overall transport costs.

2 Enhanced export of non-traditional goods.

3 Simplified custom procedure and reduced paperwork.

4 Faster movement of cargo.

5 Reduced port congestion.

6 Enhancement of export potential of hinterland countries.

7 Optimal utilization of national infrastructure and resources.

8 Reduced uncertainty in transport costs involved.

9 Stable import it helps in reducing inventory levels. 

10 Generate foreign revenue and increase GNP through increased economic activity.

Multi-Modal Transportation of Goods Act, 1993 is based on Hamburg rules or UNCTAD/ICC Rules for multi-modal transport. The Director General of Shipping has authorized ‘Multi-Modal Transport Operator (MTO) for the carriage of goods.

When MTO enter into contract with consignee, the former issues a document of title called Multi-Modal Transport Document (MTD). The provisions of MTD specify the liabilities of MTO.

MTO is obligated to deliver goods to consignee or endorsee and is also liable for loss, damage or delay done in delivering the goods.

If the consignment is not delivered within 90 days from due date of delivery or as agreed upon or within reasonable the consignment is deemed to be lost.

The claims against MTO for loss, damage or delay must be filed within 9 months from expected/actual date of delivery. For claimable loss, law provides for different liabilities:

• If nature and value of goods has not been declared, and stage of transport where damage was done is unknown, the liability does not exceeds 2 Special Drawings per kg or 666.67 Special Drawings Rights per package or unit lost.

• If contract does not includes carriage by sea or inland waterways, the liability is limited to maximum of 8.3 Special Drawings per kilogram.

• If the stage of transport where damage done to goods is known liability is determined in accordance with the provisions of law applicable to that mode of transport.

• In case of loss due to delay, the liability is limited to freight payable for the consignment.

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