What is Multimodal Transport?
Multimodal transport is the carriage of goods by at least two different modes of transport under a single contract, with one multimodal transport operator (MTO) taking responsibility for the whole journey from taking charge of the goods to delivery. The 1980 UN Convention on International Multimodal Transport of Goods never entered into force, having 11 parties against the 30 required, so the field relies on contractual rules and national law. The UNCTAD/ICC Rules for Multimodal Transport Documents (1992) are widely incorporated into transport documents, including the FIATA Multimodal Transport Bill of Lading (FBL); they have no force of law and apply only when incorporated into the contract. Liability usually follows a network approach: where the stage of loss is known, mandatory rules for that mode can apply, otherwise the document's own limits govern. In December 2025 the UN General Assembly adopted the UN Convention on Negotiable Cargo Documents, which will give negotiable documents for any mode a common legal basis once ten states ratify it.
Why it matters for forwarders
When a forwarder issues a multimodal document such as an FBL, it acts as carrier for the whole journey, not as agent, and is liable for loss or damage on every leg, including those performed by subcontractors. Under the UNCTAD/ICC Rules, the MTO's limit is 666.67 SDR per package or 2 SDR per kg, whichever is higher, when the carriage includes sea or inland waterway, and 8.33 SDR per kg when it does not, but mandatory regimes for the leg where the loss occurred, such as CMR for international road carriage, may override those figures. Forwarders should make sure their liability insurance covers the carrier role and that subcontracts give adequate recourse against the actual carriers. Under Incoterms 2020, the rules for any mode, such as FCA, CPT and CIP, suit multimodal moves better than FOB or CIF. Under UCP 600, a credit calling for a document covering at least two modes is examined under article 19, so the LC wording should match the document actually issued.