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The push for AI capability and capacity is growing exponentially

As demand accelerates, pressure on the semiconductor ecosystem is rising, with access to critical materials such as rare earth minerals and helium overlooked.

Key takeaways

  • Disruption is expected in global supply chains.

  • Multimodal logistics enables agility and builds supply chain resilience.

  • Increased flexibility introduces additional constraints.

  • There is limited availability of critical materials.

  • Resilience depends on strategic contingency planning and careful orchestration.

The cascading consequences of delays in the semiconductor supply chain can be significant. One disruption can interrupt the flow of critical equipment, causing shortages in multiple industries. Without reliable lead times, planning, production scheduling, and inventory management become more difficult.

Managing system-wide instability and designing a resilient supply chain requires a multimodal approach to logistics. This involves more than simply combining air, sea, road, and rail freight options.

To be truly effective, a multimodal supply chain must be a highly coordinated, interconnected system that aligns exactly with the end users' requirements.

Single-mode vs multimodal logistics

The traditional logistics approach is to optimise a primary mode, such as rail, air, sea, or road transportation. In many cases, single-mode transportation is easier to plan, manage, and track. It can be highly cost-effective for short distances or bulk shipments.

However, single-mode logistics are more vulnerable to disruptions like port delays or road closures. There is an increased risk of bottlenecks caused by limited capacity or slow customs processing. If a disruption does occur, there are fewer alternative options available as the entire shipment depends on the performance of one system.

With complex, global supply chains that require speed, resilience, and reliability, single-mode logistics is a sub-optimal option, particularly for time-sensitive or high-value goods.

A bottom view of an airplane flying above the container yard

Geopolitical issues can disrupt standard methodologies used for supply chain shipments. When these scenarios arise, agility is essential. Logistics providers must be able to pivot quickly to find alternative shipping methods using different modalities to maintain the same origin and destination for goods.

Multimodal logistics offers a dynamic and highly flexible approach based on the principle of continuity through adaptability.

The primary objective is not to preserve the original plan, but to ensure that goods continue moving despite disruption. For example, cargo can be transferred from a disrupted shipping route to road or air freight or redirected through an alternative port or airport.

A mix of transport modes can also reduce the overall cost and CO2 emissions of a shipment. Multimodal logistics balances the need for speed with cost efficiency and environmental considerations by selecting the most appropriate transport mode for each stage of the journey.

In one recent example, Kuehne+Nagel’s multimodal sea-air logistics enabled a multinational technology company to reduce the CO2 emissions of its shipments by half, significantly cut transit times, and increase its weekly shipment volumes by 150%.

Multimodal and intermodal logistics

It’s worth noting that there is a difference between multimodal and intermodal logistics. While both use multiple modes of transport, intermodal models operate as a series of disconnected journeys with separate carriers overseeing each stage.

Under a multimodal model, the entire journey is managed by one logistics company. This simplifies the process and ensures precise end-to-end coordination, consistent visibility across all transport stages, and smoother transitions between different modes of transport.

A multimodal model is most effective when flexibility is supported by full network visibility, precise orchestration, and tight operational control across every node of the supply chain.

However, while multimodal models provide increased flexibility, it is worth bearing in mind that this can impact delivery times. Sea freight, for example, is inherently slower than air freight. The trade-off between speed and agility must always be taken into consideration.

Semiconductor equipment suppliers and manufacturers must partner with a logistics company that has the capabilities and expertise to manage complex, time-sensitive, and high-value shipments across multimodal networks.

Macro shot of silicon wafers during production

Balancing flexibility with operational control

Multimodal transport models provide greater resiliency and agility compared to single-mode options. However, this flexibility also introduces additional layers of complexity that must be carefully managed.

ChallengesComplianceSolutions

Operational complexity across transport modes

There are considerable time and coordination constraints to be managed. Each transport mode operates on different schedules, capacities, and operational constraints. Without predefined strategies on how and when cargo should switch between modes, unexpected transitions can create delays.

Ensuring that correct handling procedures are followed and maintaining the integrity of highly sensitive cargo is also a challenge. Handovers between modes increase the risk of damage due to misplacement, mishandling, or environmental changes. Strict control and handling standards must be carried out at every transition point.

Managing compliance throughout the journey

Compliance and documentation requirements differ not only across transport modes but also across borders and jurisdictions. This can be especially complex when dealing with global semiconductor logistics. A shipment moving from Asia to the United States may pass through multiple regulatory environments, each with its own export controls, customs declarations, and security requirements.

Semiconductor equipment or advanced components often require detailed export licences and end-use declarations before departure. Additional documentation may be required mid-transit if a shipment shifts between transport modes. When a shipment arrives at the destination country, it must clear Customs procedures and comply with any import restrictions that may apply to advanced technologies.

Without proper preparation, these transitions can trigger customs delays, secondary inspections, or administrative holds, particularly for high-sensitivity goods subject to export control regimes. Even minor inconsistencies in documentation across jurisdictions can cause significant bottlenecks and delays.

Compliance is a continuous requirement across the full multimodal journey. Close coordination between the logistics company overseeing the shipment, exporters, customs brokers, and import authorities is essential to maintain flow.

Building resilience and adaptability into multimodal supply chains

Multimodal logistics can only add value when the entire supply chain is designed and executed as a tightly controlled and fully integrated system.

Predicting every possible disruption, however, is an impossible task. Resilience and adaptability must be intentionally built into a multimodal supply chain system. This includes designing pre-defined contingency routes, so cargo can be quickly shifted between modes without delays. The aim is to achieve fast, controlled, and effective responses to any disruptions at any stage of the journey.

Volatility is now an expected component of any logistical journey. In the semiconductor industry, however, volatility also exists in the availability of critical inputs themselves.

Semiconductor supply chain constraints

Various structural supply constraints are inherent in semiconductor supply chains. In many cases, complexity is related not just to transporting equipment or material, but also to the fact that supply is inherently limited and difficult to scale.

Helium is an excellent example of such a constraint.

Helium cannot be manufactured or synthesised. It is found only in very small concentrations, often less than one per cent of extracted natural gas. As a result, global helium supply is entirely dependent on geological formations and natural gas production.

In semiconductor production, helium is used for cooling systems, leak detection, wafer processing environments, and maintaining controlled inert conditions during manufacturing. No other material can fully replicate its combination of properties.

As a result, there is currently no direct substitute for helium in critical semiconductor processes. Replacing it would require either significant changes to existing manufacturing processes or the development of an alternative with comparable characteristics. Neither option is a practical or straightforward solution.

For a fab, any disruption in helium supply can quickly cause operational issues that can slow or even halt production.

Logistics plays an important role in ensuring the continuity of access to helium despite highly constrained supply conditions. Logistics systems must ensure uninterrupted flow by diversifying routing options and reducing reliance on single pathways.

The example of helium reinforces the main principle behind multimodal logistics: when both supply and transport are fragile, resilience comes from flexibility, redundancy planning, and tight coordination across the entire network.

Multimodal logistics as a core operational capability

Multimodal logistics is often misunderstood and viewed as a purely reactive approach only used in response to disruptions. In reality, a multimodal approach is an intentionally proactive design component of supply chain strategy.

A robust and resilient semiconductor supply chain requires four main elements:

  1. planning

  2. response

  3. decision logic

  4. execution oversight

Firstly, a range of alternative transport paths must be defined in advance. If an unforeseen disruption occurs, contingency plans can be enacted to ensure the uninterrupted movement of a shipment. There needs to be clear decision criteria for switching between modes to facilitate fast, consistent, and controlled responses that minimise delay and maintain supply chain continuity.

Finally, visibility and control must be maintained across every stage of the journey. This enables early detection of disruptions, faster and better-informed decision-making, and consistent oversight of high-value shipments as they move through multiple transport modes and jurisdictions.

Following this strategy transforms multimodal logistics from a purely reactive measure into a deliberate, carefully designed operational capability.

Multimodal logistics as a mechanism for resilience

Single-mode logistics are insufficient when it comes to managing today’s highly volatile supply chain environments. While having access to multiple transport modes can provide some resilience, real value is only created when they are integrated into a coordinated, controlled, and well-orchestrated system.

Various transport options must be closely aligned with operational constraints. Transitions between transport modes need to be carefully and precisely managed. Visibility and control must be maintained throughout the entire journey.

White cargo truck driving through a modern highway tunnel, representing road freight transportation and logistics operations.

At Kuehne+Nagel, we believe that the role of a logistics partner goes far beyond arranging transport.

Logistics specialists must develop detailed strategies and coordinate closely with stakeholders across every stage of the supply chain to ensure continuity even under the most unpredictable, dynamic conditions.

Our specialists bring a deep understanding of the complexities of the semiconductor ecosystem and its continuously evolving requirements. This expertise enables supply chains to adapt in line with industry developments while maintaining the integrity, resilience, and continuity of critical logistics operations.

Without this level of semiconductor-specific knowledge, sustaining supply chain performance as the industry evolves becomes increasingly challenging. For complex semiconductor supply chains, partnering with a semiconductor-savvy logistics provider is therefore a fundamental advantage.

About the author

John Desmond has built a career spanning semiconductor manufacturing, electronics services, and logistics. Having worked across Fab, Sub-fab, and EMS environments, and with more than 15 years in logistics following a decade as a semiconductor engineer, he brings a unique perspective on supply chain challenges.

As Vice President, Global Cloud & Semiconductor Strategic Development at Kuehne+Nagel, John helps shape strategic supply chain solutions that enable resilience, scalability, and long-term growth for customers in these fast-evolving industries.

John Desmond, Vice President, Global Cloud & Semiconductor Strategic Development, Kuehne+Nagel

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