Multimodal Transport: Future Trends and Challenges

Growing freight flows are putting pressure on limited transport and transshipment capacity across Germany and the EU. At the same time, companies need more resilient supply chains and more transparent emissions data. B2B logistics teams therefore require a coordinated view of routes, carriers, terminals, documents and shipment status.

Multimodal freight will be shaped primarily by the expansion of European transport networks, digital freight data, modal shift and the need for more resilient supply chains. However, capacity shortages, complex handovers, fragmented IT systems and different legal frameworks continue to constrain development. Combining modes will not automatically make freight cheaper, nor will it eliminate the need for road haulage.

This article examines the future challenges of multimodal transport from the perspective of B2B companies operating in Germany and across the EU. Its focus is freight rather than passenger transport.

What Is Multimodal Transport?

It is a freight chain that uses at least two modes of transport. Common combinations include road and rail, road and sea, road and inland waterways, and air and road. A truck often handles the first mile and last mile, while the longer main leg runs by rail or water.

Several carriers, terminals and transfer points may be involved. The loading unit may also change. Depending on the operating model, service providers and legal context, the chain may be covered by one contract or several. The number of contracts is not a universal defining criterion.

Multimodal, Intermodal and Combined: What Is the Difference?

The terms describe related but distinct concepts. The key differences concern how the loading unit is handled and the role of road haulage.

Multimodal Transport

In multimodal transportation, multimodal transport chains connect two or more modes. The goods may be transferred between individual legs, and the loading unit may change. What matters is the continuity of the freight chain, not a particular contractual structure.

Intermodal Transport

This model also uses at least two modes. However, the goods normally remain in the same intermodal loading unit, such as a container, swap body or semi-trailer. When the unit moves between truck, train or vessel, the loading unit is transferred rather than the goods themselves. This can reduce handling effort and the risk of damage, although the chain still depends on terminals and timetables.

Combined Transport

Under the European Commission definition, this is a form of intermodal transport. The major part of the journey is completed by rail, inland waterway or sea, while road legs at the beginning and end should be kept as short as possible. It is therefore narrower in scope than the general multimodal concept.

Note: The specific contractual and liability structure depends on the transport model, the service providers involved and the agreed terms.

Why Is Multimodal Freight Transport Becoming More Important?

Rising Freight Demand

Rising freight demand increases pressure on roads, railways, inland waterways and transshipment points. On heavily used corridors, limited capacity and longer transport distances can intensify existing bottlenecks.

Multimodal freight transport can help distribute suitable cargo flows across several systems. This requires sufficient capacity on every leg and reliable connections between the modes involved. The specific German forecast figures are discussed in the next section.

Capacity Limits of Individual Modes

Every mode has its own constraints. Road corridors are affected by congestion. Passenger and freight services compete for train paths. Inland navigation depends on water levels. Ports and terminals may face shortages of space, labour or handling capacity.

Combining modes distributes freight across different networks but also creates additional dependencies. An available train path is of little value if the connecting service is cancelled or the terminal cannot handle the loading unit.

Resilience and Flexible Supply Chains

Multimodal transport chains can provide alternatives during disruption and reduce dependence on a single route, mode or carrier. They can also support carrier diversification. These benefits depend on current data, suitable infrastructure, available reserve capacity and predefined diversion options.

Additional handovers also create new points of failure. Missing status data, missed connections or unclear responsibilities can affect the entire chain. Resilience therefore comes from planned alternatives and effective exception management, not simply from adding more transport modes.

Decarbonisation and Modal Shift

European transport policy treats shifting suitable long-distance freight from road to rail or inland waterways as one tool for decarbonisation. This does not mean eliminating trucks. Road transport remains essential for many first-mile and last-mile operations.

The environmental result depends on the whole chain: route, load factor, energy source, detours, terminal operations and additional handling all need to be considered. A lower-emission main leg does not necessarily mean that the overall journey has a low carbon footprint.

What Are the Main Forecasts and Targets for Multimodal Freight? 

Forecasts, policy objectives, infrastructure deadlines and regulatory dates need to be distinguished. A forecast describes an expected development based on specific assumptions. A policy target sets a desired outcome but does not guarantee its achievement.

German 2040 Base Forecast

The German 2040 Base Forecast expects freight volume in Germany to increase by around 17.3% by 2040 compared with the 2019 base year. Freight transport performance is forecast to rise by around 31.2% over the same period. These figures apply to Germany and are not forecasts for the EU as a whole.

Growth is not expected to be uniform across all freight segments. The forecast indicates a particularly strong increase for combined operations. The relevant figures are explained separately later in the article.

TEN-T to 2030, 2040 and 2050

The Trans-European Transport Network is intended to improve cross-border links and remove missing connections and bottlenecks. It covers railways, roads, ports, inland waterways, airports and multimodal freight terminals. Under the European Commission timetable for TEN-T, the core network is to be completed by 2030, the extended core network by 2040 and the comprehensive network by 2050.

These dates are infrastructure targets. They do not mean that every corridor already meets the required standards. For companies, the practical question is whether suitable terminals, rail connections and hinterland links are available and reliable on their specific lanes.

Modal Shift as a Policy Objective

EU strategies have long sought to move suitable long-distance freight from road to rail and waterways. These objectives guide investment and regulation, but they are neither guaranteed forecasts nor obligations for every company. Not every product, delivery deadline or route is economically suitable for such a transfer.

Which Trends Will Shape the Future of Multimodal Transport?

The most relevant multimodal transport trends concern data exchange, real-time visibility, system integration and more flexible planning.

Digital Freight Data and eFTI

The digitalisation of multimodal transport starts with reliable data. Regulation (EU) 2020/1056 establishes an EU framework for the electronic exchange of certain regulatory freight information between businesses and public authorities. The abbreviation stands for electronic freight transport information.

According to the European Commission implementation timetable, the Regulation will apply in full from 9 July 2027. From that date, authorities in EU Member States must accept information made available electronically by operators through certified eFTI platforms. Paper documents are not generally prohibited, nor is there a blanket requirement for every company to submit all freight information electronically.  Whether the framework applies depends on the type of information transmitted and the process concerned.

B2B companies still need to prepare. Data fields, document flows, responsibilities and system access should be reviewed in good time. The legal framework does not automatically digitalise the entire freight chain.

End-to-End Visibility and Real-Time Tracking

End-to-end visibility brings together status data from collection, terminals, transfers, the main leg and final delivery. Consistent real-time tracking can improve ETA predictions and help companies inform customers earlier when a shipment deviates from plan.

Visibility is only as reliable as the underlying data. Some carriers provide near-real-time events, while others report only at selected milestones. Different event codes and missing terminal data also make it difficult to create a consistent status. Technical visibility alone does not ensure that teams respond in time.

Data Integration via API and EDI

ERP, WMS, TMS and carrier systems must identify the same shipment repeatedly. This requires stable API or EDI connections, unique shipment IDs and maintained master data. Addresses, weights, dimensions, loading units and time windows should be consistent across systems.

Different formats, incomplete fields and inconsistent process logic often prevent clean data exchange. Data interoperability requires both technical interfaces and binding rules for status mapping and data maintenance.

AI-Assisted Planning and Predictive Analytics

AI and predictive analytics can examine historical freight data and support the planning of complex chains. Possible applications include route analysis, estimated arrival times, delay forecasting, and assistance with selecting modes or carriers.

The quality of the output depends on complete tracking data, reliable system integrations, current capacity information, and clearly defined model boundaries. AI does not yet control complex freight chains autonomously on a broad scale. Its main role is to support planning and decision-making.

Synchromodal and Dynamic Transport Planning

In synchromodal planning, the mode can be selected according to the current operating situation or changed during the process. A company could, for example, switch between road, rail and inland waterway options when capacity, lead times or disruption make this necessary.

The concept is promising, but its practical use remains limited. Broader adoption requires:

• current and reliable freight data;
• available capacity on alternative modes;
• aligned contracts and responsibilities;
• suitable terminals and transshipment facilities;
• the ability to change bookings at short notice.

What Are the Main Challenges of Multimodal Transport?

Infrastructure and Capacity Bottlenecks

Many of the main constraints are physical. A lack of train paths, limited terminal capacity, construction work and weak hinterland connections cannot be solved by software. Differences between national infrastructure systems also complicate corridor planning.

Transfer points are particularly critical. Loading units, staff, cranes, time slots and connecting services must all be available at the right time. If one element fails, dwell time increases and the next scheduled connection may be missed.

Complex Handovers and Operational Dependencies

Every handover requires aligned arrival times, documents and responsibilities. A delayed pre-carriage leg can result in waiting or storage costs. A missed train or terminal slot can extend the total transit time. Time-critical cargo therefore requires buffers, escalation routes and replacement options.

Fragmented Data and Limited Interoperability

Multiple carrier portals, different API and EDI formats, manual entries and inconsistent identifiers make it difficult to maintain a single reliable view. Data ownership, access rights, and cybersecurity add further complexity. A platform can consolidate information, but it cannot correct poor master data without defined governance.

Costs and Economic Viability

The freight rate alone is not enough for a meaningful comparison. Total transport cost may include:

• pre-carriage and onward carriage;
• terminal and transshipment fees;
• waiting time and intermediate storage;
• documentation, customs and insurance;
• delay and damage risks;
• safety stock, integration and administrative work.

There is no universal minimum distance at which this model automatically becomes viable. Regularity, volume, loading unit, terminal access, deadlines and reliability must be considered together. The term total landed cost is appropriate only when the value of the goods, customs duties, taxes and other costs to the destination are also included.

Liability, Contracts and Cross-Border Rules

If damage occurs, companies need to establish on which leg it happened and who is responsible. Contracts, insurance, customs procedures and documentation vary. Service-level agreements, reporting channels and claims procedures should be clearly defined. Specific legal questions require professional advice.

Skills and Process Ownership

Complex freight chains require knowledge of different modes, data flows, operational handovers and exception management. Procurement, warehousing, transport management, customer service, carriers and terminals also need to work together.

A clearly appointed process owner should:

• define responsibilities and escalation paths;
• monitor freight data and KPIs;
• coordinate handovers and exception processes;
• integrate carriers and terminals into workflows;
• support training and necessary process changes.

Digital systems can support these tasks, but they do not replace expertise or clear accountability.

Is Multimodal Transport More Sustainable?

A multimodal solution can reduce emissions when lower-emission modes cover a substantial portion of the journey and the resulting benefits are not offset by additional handling, detours, or first- and last-mile movements.

Rail and inland waterways can offer advantages on suitable routes and with good utilisation. Trucks remain important for flexibility and for locations without direct access to rail or water. A robust comparison must consider distance, load factor, energy mix, terminal operations and empty running across the whole chain. The emissions of one main leg are not sufficient evidence.

Sustainable multimodal transport also requires a consistent calculation method and data for every leg. Depending on their size, legal form and reporting obligations, companies may need information about transport-related emissions. The applicable requirements depend on the relevant law and the company's status.

Multimodal Transport in Germany and the EU

Germany as a Central Logistics and Transit Hub

Germany's position at the centre of Europe connects freight flows between northern, western, southern and eastern markets. The country is therefore an important origin, destination and transit location for cross-border freight.

Northern German seaports are connected with the hinterland by road, rail and, on some routes, inland waterways. These links carry goods to industrial regions, logistics centres and markets across Europe. Road freight provides flexible regional connections and often covers the first mile and last mile. Rail is particularly relevant for larger volumes and longer distances, while inland waterways provide additional capacity on suitable routes.

The performance of German supply chains also depends on cross-border links, compatible systems and sufficient capacity along European transport corridors. National infrastructure cannot be assessed in isolation from the networks of neighbouring countries.

Development of Combined Transport

Combined transport in Germany combines the capacity advantages of rail or inland waterways with the flexibility of road haulage for the first and last legs. It depends on suitable loading units, efficient transshipment facilities and reliable connections between individual sections.

The German 2040 Base Forecast expects the volume of combined transport to increase by approximately 88.9% compared with 2019. Transport performance in this segment is forecast to grow by around 81.0%.

These figures apply only to combined operations in Germany. They do not describe the development of the entire European market or of all freight chains that use more than one mode. They are also forecast values based on assumptions, not guaranteed outcomes.

Actual development will depend on:

• sufficient capacity on railways and waterways;
• efficient terminals and transshipment facilities;
• reliable pre-carriage and onward carriage;
• suitable loading units;
• competitive total transport costs;
• predictable lead times and connections;
• available alternatives during disruption.

TEN-T and European Transport Corridors

The trans-European network is intended to connect the EU's main routes and nodes more effectively. It includes roads, railways, ports, inland waterways, airports and multimodal terminals.

European Transport Corridors are designed to strengthen cross-border connectivity, close missing links and reduce infrastructure bottlenecks. Common technical and operational standards should also improve interoperability between countries and transport systems.

Multimodal freight terminals act as key interfaces within these corridors. Containers, swap bodies and semi-trailers transition between road, rail and water there. Terminal capacity, technical equipment and accessibility therefore influence the performance of the whole chain.

Implementation follows the previously described timetable for the core, extended core and comprehensive networks. These are infrastructure targets rather than guaranteed market forecasts, and not every corridor section currently meets the intended requirements.

The Role of Ports, Rail and Inland Waterways

Ports, rail networks and inland waterways perform different functions. Only their connection with roads and terminals creates continuous freight flows between international main legs and regional destinations.

Hamburg and Bremerhaven serve as major maritime nodes for German foreign trade. Sea services connect there with rail, road and, in some cases, inland waterway links to the hinterland. The performance of the ports therefore depends not only on quay capacity but also on their inland connections.

Duisburg performs an important role as an inland logistics hub. It links inland waterway, rail and road services and supports flows between seaports, European industrial regions and continental corridors.

The Rhine and other navigable waterways can carry large freight volumes. Their use depends on suitable routes, sufficient port and terminal capacity and adequate water levels. Rail freight corridors provide another foundation for long-distance domestic and cross-border movements, connecting ports, terminals and industrial sites.

Ports, rail and inland waterways do not completely replace road transport. They complement it, while trucks frequently handle collection, delivery and flexible access to locations that are not directly connected to rail or water.

How Can Digital Logistics Platforms Support Multimodal Operations?

A digital logistics platform can combine carrier, shipment, document and tracking data in a central environment. Depending on its functionality, it may support carrier, rate and service comparison, shipment creation and booking, document and returns management, status updates, alerts and reporting. ERP and WMS systems may also be connected through API or EDI interfaces. Consolidated data can support carrier performance analysis and exception management.

Shipstage supports companies with shipment tracking, carrier and service comparison, and the integration of existing systems. A dedicated solution is also available for regular pallet shipping.

What Should B2B Companies Do Now?

1. Identify Suitable Transport Lanes

Start with recurring and predictable lanes. Assess the route, distance, shipment volume, frequency, loading unit, cargo value, sensitivity, delivery deadline, and access to rail, waterways, and terminals. Include available carriers, alternative routes and first- and last-mile options.

2. Calculate the Total Cost of the Chain

Do not compare freight rates alone. Include initial and final road legs, transshipment, terminal costs, customs, insurance, waiting time, storage, damage risks, integration and internal administration. Compare these costs with transit time, on-time performance, flexibility, visibility and emissions.

3. Start With Pilot Lanes

Select one recurring route and document the baseline. Record current cost and lead time. Agree service levels, responsibilities, and escalation paths. Define KPIs, test tracking coverage and document flows, and evaluate deviations before scaling the solution.

4. Prepare Data Quality and Integrations

Check addresses, shipment IDs, weights, dimensions, loading units and time windows. Review ERP, WMS, API and EDI connections. Define rules for status mapping, document formats and missing data. Poor master data reduces the value of even a well-integrated system.

5. Review Processes for eFTI

Identify which information is currently shared with public authorities and which documents are affected. Review system readiness, monitor certification requirements, and assign responsible employees. Prepare for full application from 9 July 2027 without treating it as a universal electronic-processing obligation for every shipment.

6. Plan for Risks and Alternatives

Define backup routes, alternative carriers and alternative terminals. Set buffers, delay-handling rules, escalation processes and customer communication procedures. Review carrier performance and contingency plans regularly.

Which KPIs Are Useful for Multimodal Transport?

KPIs should cover cost, time, quality, reliability, visibility and environmental performance.

No KPI should be evaluated in isolation. A low cost per shipment does not compensate for a high damage rate. A short transit time says little about on-time performance. A high visibility rate does not ensure a timely response to exceptions. Similarly, a low-emission individual leg does not prove that the complete chain has low emissions.

Conclusion

Multimodal solutions are likely to become more prominent in European B2B logistics, but their development is not automatic. Complex freight chains require infrastructure, terminal and transshipment capacity, interoperable data and clear coordination between participants. Digital tools improve visibility and planning, but physical capacity remains decisive.

These solutions are not always cheaper or more sustainable. Companies should analyse suitable lanes, calculate total transport cost and begin with pilot routes. Data, KPIs, service levels and responsibilities should be in place before the model is scaled.

Companies handling regular B2B and palletised shipments should assess which transport lanes are suitable from an economic, operational, and environmental perspective. Centralised carrier and data management can make options easier to compare, and freight processes more transparent.

Frequently Asked Questions About Multimodal Freight

What Is Multimodal Transport?

It is a single freight chain that uses at least two modes, such as road and rail. The contractual structure may vary depending on the model and service providers involved.

What Is the Difference Between Multimodal and Intermodal Transport?

Both models use multiple modes. In the intermodal model, the goods usually remain in the same loading unit, such as a container, and are not themselves reloaded when the mode changes.

What Is Combined Transport?

It is a European form of intermodal operation. The main part of the route is completed by rail, inland waterway or sea, while road is used primarily for limited first-mile and last-mile legs.

What Are the Main Multimodal Transport Challenges?

Multimodal transport challenges include infrastructure constraints, terminal capacity, complex handovers, fragmented data, limited interoperability, total cost, liability, contracts and cross-border procedures.

What Is the Future of Multimodal Transport?

Key drivers include transport-network investment, digital freight information, the transfer of suitable flows to rail or waterways, integrated status visibility and supply-chain resilience. Infrastructure investment and coordination will remain necessary, and there is no guarantee that one model will become dominant.

Is Multimodal Freight Always More Sustainable?

No. The result depends on the mode mix, route, distance, load factor, energy mix, terminal operations, initial and final road legs, and any additional handovers.

When Is Multimodal Freight Economically Viable?

Viability depends on shipment frequency, volume, route, distance, terminal access, handling costs, delivery requirements, service reliability, and total transport cost. There is no universal minimum distance or volume.

What Will Change Under eFTI From 2027?

From 9 July 2027, public authorities in EU Member States must accept electronic freight information made available through certified eFTI platforms. Paper remains possible, and companies are not generally required to process every shipment electronically. Whether the framework applies in a particular case depends on the type of information transmitted and the process concerned.

How Can Companies Manage Multimodal Freight More Effectively?

They need shared data, system integrations, live shipment tracking, KPIs, service-level agreements, exception management, clear responsibilities, carrier-performance monitoring, and robust contingency plans.