Key Takeaways:
- Labor shortages and supply chain disruptions can affect an enterprise’s ability to run efficiently and move goods. Intermodal transportation helps ensure that businesses can continue to operate with fewer delays and a more optimized supply chain.
- The most common combinations of intermodal transportation are truck, rail, and ship. This powerful combination can keep supply chain operations running steadily and optimally, and cut down on delivery time.
- Operators can cut operational costs by choosing what combination of transportation is best depending on a shipment’s desired route.
- Intermodal transportation benefits the environment and helps create a more sustainable supply chain. It can also be safer for both workers and goods.
- The U.S. supply chain infrastructure is antiquated in many areas, and more investment in improving the supply chain is needed. Investments like the Infrastructure Investment and Jobs Act can help.
The Benefits of Intermodal Transportation
The complexity of the global supply chain presents a variety of challenging issues and obstacles, including labor shortages and the potential for major supply chain disruptions, such as natural disasters and cybersecurity breaches. Such roadblocks have the potential to make operations more difficult for supply chain stakeholders — which is why U.S. legislators are working to identify solutions to reduce supply chain disruptions. It’s understandable that supply chain managers are always on the lookout for processes and efficiencies to safeguard and evolve their supply chains and find ways to optimize operations, cut costs, and improve safety. For many, a combination of intermodal transportation methods has been key in helping to keep their supply chains moving steadily and optimally.
Intermodal transportation involves the use of two or more modes of transportation to move goods within the supply chain. The most common combination of intermodal transport includes rail, truck, and ship transport. Goods are placed in specialized, standardized steel containers that are meant for making the shipping process easier. Not only do these containers safeguard products but also make transfer between trucks, trains, and container ships faster and less work-intensive as they pass through each leg of the shipping journey.
Intermodal transportation has a variety of benefits:
- Faster delivery times — Delivery times can be reduced by intermodal transportation. Companies can select what mode of transportation to use based on the longest stretch of their route. Plus, the specialized containers mentioned above ultimately help reduce overall delivery time.
- Reduced shipping costs — Companies will turn to intermodal transportation when they’re trying to cut back on costs. For example, rail travel over long stretches consumes less fuel than the equivalent number of trucks.
- Reduced wear on infrastructure — The nation’s aging roads and bridges are, in some instances, many decades old. Intermodal transportation reduces overall wear-and-tear on roads and bridges and lessens the need for disruptive maintenance, which in turn can lead to both commuter headaches and supply chain slow-downs.
- Enhanced security —Trains and container ships are generally less susceptible to theft than trucks, and the containers used for intermodal transportation are also typically more secure than other transportation options.
- Improved safety for people and products — Using other modes of transportation aside from trucks statistically reduces the number of accidents. Not only does this increase safety for truck drivers but other motorists on the road. Damage to goods can also be reduced because of the containers used in intermodal transportation. Once a product is packaged, it can be transferred between various shipping modes and doesn’t need to be handled again until its destination.
- Environmental benefits — Transportation by train keeps fewer trucks on the road that emit fuel emissions into the air. Also, shipping cargo by sea is more fuel-efficient than by air.
Despite its myriad benefits, the intermodal transportation industry is not without its challenges. Many of the roads, rail lines, and ports in the U.S. are greatly in need of repair and renovation. The recent passage of the Infrastructure Investment and Jobs Act will help — more than $550 billion is earmarked for the upkeep of the nation’s roads and bridges alone. Improvements to freight rails, ports and waterways, and airports are also part of the federal investment package. But it will take years to roll out many of these improvements, and costly delays and inefficiencies can mount up with an outdated supply chain infrastructure. Another concern is security; cargo thefts jumped 49% in North America in the first half of 2024. Companies lose millions of dollars worth of merchandise to these thefts, which are also a threat to worker safety and can contribute to rising prices for consumers.
Still, with consumer demand on the rise, there is an ongoing need to optimize the supply chain, which includes improving sustainability, increasing efficiency, and cutting down costs and transportation expenses. Intermodal transportation remains one of the best solutions for this. Intermodal transportation can be expected to evolve and grow so long as we continue to invest robustly in our nation’s sprawling infrastructure.
Frequently Asked Questions:
What are the benefits of intermodal transportation?
Intermodal transportation offers benefits like reduced shipping costs, lower environmental impact, and improved flexibility by combining multiple transportation modes, such as trucks, trains, and ships. This system enhances logistics efficiency and provides more reliable, timely deliveries.
Why is intermodal transportation so efficient?
Intermodal transportation is efficient because it leverages the strengths of each transport mode. For instance, rail and sea modes handle long distances economically, while trucks manage local deliveries, minimizing delays and fuel costs.
Why does the intermodal transportation industry pay more than certain industries?
Intermodal jobs may pay more due to the need for specialized skills, the additional logistics involved in coordinating different transport modes, and sometimes increased safety requirements. Drivers often require certifications, contributing to higher wages.
How can a local economy be benefitted by intermodal transportation?
Intermodal transportation boosts local economies by creating jobs in logistics, warehousing, and transportation. Additionally, it enhances trade efficiency, attracts businesses needing reliable transport, and can stimulate infrastructure improvements.
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