Intermodal Transportation: Features, Challenges, and Solutions

This report provides a comprehensive overview of intermodal transportation, emphasizing its significance in global trade and economic development. It delves into the features of intermodal companies, highlighting their core and ancillary characteristics, as well as the services they offer. The report explores various logistic management strategies, including those related to financial management, technology adoption, demand forecasting, and product safety. It identifies challenges faced by intermodal companies, such as differing transport policies, technological advancements, and environmental concerns, and proposes solutions. The role of the government in supporting and developing an efficient and sustainable intermodal transportation system is also discussed, emphasizing its commitment to infrastructure development, energy efficiency, and environmental protection. The report concludes by examining the impact of congestion, unbalanced trade, and intermittent, chronic, and catastrophic issues on the intermodal system, offering insights into risk management and mitigation strategies. This report, contributed by a student, can be found on Desklib, a platform offering AI-based study tools and resources.

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Executive summary
Intermodal transportation is a very important factor for social economic development.
Global trade has opened the world such that goods are constantly moving for long and short
distances. Minimizing transportation cost is a key factor that all shippers are considering as they
move their goods. This globalization of trade has therefore made intermodal transportation very
significant. As the shippers are considering cost, they also consider security of goods as well as
time. And intermodal transportation system is a system that it is possible to give shippers a cost
effective mode of transportation, and efficient. All the stakeholders that are involved from the
shippers, the agencies running the intermodal company as well as the government are all
concerned about the environmental impact of the transportations system and well as the
sustainable utilization of the transportation infrastructure. The government is a key player in the
success of an intermodal transportations system as they are the ones to provide the
infrastructure as well as partner to create and enhance the available transportation terminals.
Introduction
The rapid growth in global trade has necessitated the development of transport systems.
Intermodal transportation is a mode of goods movement that uses more than one mode of
transport be it rail, air, road or sea (Bruns et al, 2014). Intermodal transportation involves using
containers to transport the goods. In this transportation system, cargo itself is hardly handled or
changed from one container to another. It will move from its origin to its destination in the same
package (Childress, 2005). This mode of transportation is capital intensive but involves less
labor than the traditional modes of freight movement with most of the cost being incurred on
operations of the transport terminals. Intermodal transportation mostly involves the

transportation of bulk goods whether dry or wet bulk goods. Wet goods are commodities that
mostly in fluids form such as oil, while dry goods are non-fluids such as locomotives, grains and
other goods.
Intermodal transportation started in American; however, today it is a global phenomenon.
The North American experience is a good example of an effective road and rail intermodal
system with state of the art technology (Kuehn et al., 2015). Although intermodal transport
systems requires big pieces of land to develop as well as huge sums of capital, the fact that it is a
cost effective mode of transport, environmentally viable as well as economically sustainable,
then it is worth all that it takes to set up (Dărăbanț et al., 2012). In America intermodal
transportation started way before the big steel containers were invented. It used to be done in
wooden boxes carried on horse backs. Today there has been significant development in the
intermodal transport industry. Today intermodal cargo includes even highly perishable goods
such as fresh vegetables and flowers, dairy products that are carried in specialized containers
such that they will stay fresh no matter the distance they have to cover. Fast moving consumer
goods (FMCG) and the locomotives industry are the major shippers in intermodal transportation.
This has been so due to global trade that has been on the rise.
Features of an intermodal company
Most intermodal companies offer intermodal drayage services, container storage,
transportation services as well as intermodal transportation services. Intermodal terminals have
two main characteristics; Core and ancillary. The core characteristics entail the infrastructure,
equipment, storage and management. The ancillary characteristics are those involved in trade
enablement, circulation points, and store facilities and container facilities. Through intermodal

transportation, there is reduced handling of cargo, and also chances of damage on the cargo are
minimized. Intermodal transportation ensures standardization of transportation and transfer
equipment as well as increases automation of terminal operations.
Intermodal logistic management strategies
In the operations of any company issues are bound to arise. This fact is also true in the
operating of an intermodal company. An intermodal company therefore requires having logistic
management strategies to overcome these issues. Strategies related to financial management,
technology, demand, cost saving, lead time for service development, planning and forecasting as
well as capacity (Luo et al., 2016). There also need to have strategies that ensure product safety
at all modes of transport. Intermodal companies play a vital role in creation of capital and
revenue, capital consumption as well as expense control. It is therefore important for these
companies to have financial management strategies to measure and improve financial
performance. Good financial records give the intermodal companies an opportunity to justify
their projects (Xiang, 2014). The reason that manufactures and other users will prefer to use an
intermodal means of transport is so as to cut transportation cost. It is therefore the responsibility
of the intermodal companies to put in place measure that the manufactures do not end up
spending more than they would have in any other mode of transportation. There are new
technologies emerging every other day. Mostly the new technologies come to make work easier.
However embracing the new technologies in a system that is already running is not always a
walk in the park (Kuebler, 2016). Intermodal companies therefore need strategies on how they
will be embracing new technologies as well as working to improve their own systems so as to
serve their clients better.

There is high demand for intermodal transportation. The growth of international trade
means that goods are now moving for longer distance. The intermodal companies need to have
strategies on how to handle new demand avenues understanding that different countries will have
different regulations, time zones, currencies and transportation policies among other issues
(Korkmaz, 2017). With the longer distances that good are covering, it is vital that the intermodal
companies ensure the security of goods. Having trained packaging and parking personnel is one
way that the companies can ensure that goods will get to their destination safely (Stillman,
2013). Planning and forecasting is important in risk management. Intermodal companies need to
have measures in place that they can address any unceremonious issue as well as the normal
operations issues. Carrying out audits will keep an intermodal company at a good place to deal
with calamities sometimes even before they happen.
Challenges and solutions to intermodals issues
Like any company, intermodals also face challenges. Some of the challenges that
intermodals are facing with the current logistic network are different transport policies in the
countries the goods pass through in the transportation chain. These policies may sometimes make
the movement of the goods to be more expensive. To tackle the issue of policies, all stakeholders
need to come together and discuss the best way forward so as to enhance trade for all the players.
Technology is another problem that the intermodal companies face. Technology has its good and
bad side. While it is making systems more efficient, it also makes initial cost very expensive.
There has been a widespread concern on the environment and the modes of transport used in the
intermodal system are some of the major contributors to environmental pollution. There are new
technologies that are coming up for more environmental friendly modes of transport (Qu et al.,
2016). This means that companies drop the old methods that they used and now embrace the new

methods. This comes at a hefty capital cost. Rail lines as well as road networks are increasing
becoming more sophisticated. This sophistication mostly is making rail freight cheaper that road
transportation. This eventually means that companies will embrace the rail freight more making
them have to deal with capital loss (Sowinski, 2013). To deal with the issue of capital loss due to
technological chances, the intermodal companies should have strategies in place on how they
will embrace new technology and how they will gradually dispose the capital that they no longer
use. It also pays to be up to date with the developments so that the companies are not found off
guard. Attempting to improve the resources they already have is also a way to reduce the amount
of loss in case of changes in technology.
Not all counties are improving their road and rail networks. This lack of uniformity in the
travel chain is a major problem for intermodal companies. This leads sometimes to a company
not being reliable in the services they offer. Currently there is heavy investment in transport
infrastructure that is going on in many parts of the world. It might be a matter of time and there
will be a smooth flow of goods through the transportation chain (Tirschwell, 2012). Sometimes
clients give their orders and have a very tight time schedule. To avoid failing the client at getting
a bad review, the company should have strict policies that guide deadlines and deliveries.
Sometimes the clients will have a small package and they may have to wait for their load to be
consolidated with another so as to save on cost as well as the environment. Engaging the clients
on such issue and being discrete will help overcome this challenge.
High client expectations are also challenge that the intermodal companies face. This
means that the companies have to invest heavily on systems that will much to the expectations of
the clients and give them satisfactory service. The better the technology the safe the goods are
expected to reach their destinations. When clients are able to track their freight on the

transportation chain, it gives them confidence and satisfaction the industry. The intermodal
transportation industry is very competitive and the margins are low therefore companies have
always to be on top of their operation so as to avoid incurring losses. Congestion is another
challenge that intermodals face (Cassidy, 2015). There is congestion at the terminals such as the
ports as well as congestion on some roads. Making maximum use of terminals all terminals as
well as use of technology will ease congestion. Expansion of rail and road also is a solution to
congestion. Unbalanced trade leads to surpluses and deficits of empty vehicles.
In North America, the intermodal system does face intermittent, chronic as well as
catastrophic issues. Intermittent are the minor issues such as expected change in the weather that
might slow the movement of cargo. Sometimes the cargo will stop moving temporarily while in
others the movement will be slower. These issues can be tackled by having weather knowledge
beforehand. However for the unpredictable, there is a policy that can be put in place so that the
shippers are in the know of what to do in case of a delay.
Chronic issues are issues that happen often and they can be either regional or only affect
the intermodal transportation sector. Some of these are the differences in modal capacity in
between the different modes of transport. This is a major challenge that the government needs to
look into and to provide a uniform transition of cargo with in the different modes of transport.
Labor strikes are also chronic issues that the intermodal transportation system faces. Considering
that this sector is labor intensive, a labor strike affects business in a big way (Performance-based
Transportation Programs, 2015). Strong labor law as well as adhering to them will prevent such
occurrences. Catastrophic issues are those that cause immense damage on infrastructure such as
terrorist strikes or a natural disaster. These are issues that affect a nation or the macro economy.

For catastrophic issues, it involves national rebuilding where by all players in the economy are
involved. The rebuilding is usually expected to take some time.
Government responsibility
The American government is committed to support an intermodal system that is well-
organized, energy saving, and environment friendly (D'Ambrosio et al., 2012). From way back in
1980s the government has been consistent on this cause. Then the government had identified six
key areas to address; preserve and develop the national transport system, to back a
comprehensive fiscal foundation for all modes of transportation, to maintain the transport system
firm and economically relevant, make sure that the transport industry upholds community
welfare and national safety, to safeguard the environmental factors and the value of life and
finally to further develop technology in the US transport system and knowledge and skill for the
21st century (Garrison, 2014). It is in 1991 that the US Congress approved Intermodal Surface
Transportation Efficiency Act (ISTEA) where by the present transport rule of the USA is
mentioned. The enactment and implementation of the ISTEA is what has resulted in the transport
infrastructure development that is witnessed today in America. A lot of planning takes place so
that the improvement and development of the transportation network does not happen in
separation of local government and regional issues. The national government also rums audits to
ascertain the effectiveness of the transport network as well as learn of deficiencies that they need
to act on to attain maximum effectiveness.
The government also supports ISTEA by funding in its quest to fulfill its mandate
especially with concerns to the environment. The government transport policy that enables the
movements of goods freely from one terminal to the next is also supporting intermodal

transportation as there are no policy barriers. Public-private partnerships in the development of
terminals are a great support that the government supports intermodal transportation (Puettmann
et al., 2010). The terminals are sometimes very expensive to construct and a partnership that
assists in the initial cost is a great incentive. The government also goes out to break trade barriers
that other countries may impose. The barriers may be affecting trade between the two countries
or regions however there cannot be trade without transportation and therefore intermodal
transportation also benefits in the talks to break trade barriers.
Security is also a major concern along the transportation chain. The movement of goods
is threatened by bleaches of security such as terrorism. It is the duty of the government ot make
sure that its citizens as well as their property is safe. There also threats such as bad weather for
the vessels of transportation to move. The government provides precise weather forecasts and
also advices the citizens accordingly. Availing the information as well makes sure that before a
consignment starts its journey all possible factors have been considered and that the cargo will
only move when it is assured of security.
Conclusion
Intermodal transportation is one part of the economy that cannot be ignored. Its impact on
the economy, individual lives and the environment is very significant. It is therefore the
responsibility of both the national government as well as the private sector to ensure that the best
practices are involved in the operations of the industry. There is great concern on the impact of
the industry to the environment. There is therefore need to invest more in the rail networks as
well as water ways to ease congestion as well as minimize the adverse effects on the
environment. Speed is a major factor that the stakeholders should look to improve so that the

environmental friendly practices are efficient and effective, with more and more trade taking
place, there is need to continue growing the capacity that the intermodal system can
accommodate at a given time. Security of the goods as well as the vessels of transport ant the
people that are operating them should also continue to be improved considering that the
transportation terminals are targets of criminal activities such as terrorism. Continue recording of
weather forecasts is also of great help to the intermodal system. This will make the flow of cargo
to be continuous and effective at all times. In areas were transition from one mode of transport is
to smooth, it is important to invest in making sure that there is a smooth from of cargo from one
mode to another. Legislations and the obeying of them also ensures an effective transportation
system. This makes sure that all that is involved is working in the best conditions and the welfare
of all is well considered.

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