Question

Discuss the benefits and drawbacks of intermodal transportation for international freight. Present plausible scenarios in each case.

Answer 1

Intermodal transportation can be seen as a transportation method in which two or more than two transportation modes are used for the movement of freight from one place to other. The intermodal industry faced a tough time in 1995 resulting from the poor economic situations, weakening GDP, excess capacity and rate cuts in the trucking industry. The global trading between various areas or regions can be ensured by using this mode as it encompasses the benefits of various transportation modes and it is quite cost-effective. The capacity and the effectiveness of sea transportation facilitate the large volume shipments to ship from one continent to other with the least possible cost.

One does not require to compromise on the quality or the accessibility t the products and in fact by using this transportation, it is possible to attain greater accessibility by connecting various modes. By using road transportation, the products can be reached to specific locations which cannot be accessed by other modes particularly by air and water and pipeline transportation. For example, the products or goods can be transported from one airport facility to other using air transportation. Therefore the gap which prevails between the origin point of the airport and the ultimate destination is covered by road transportation.

It is also possible to have greater cost efficiency without having compromised in the service quality or accessibility. This means that with the help of intermodal transportation, the inherent capabilities of various transportation modes can be utilized by the supply chain to have a check on the cost and fulfil the requirements of the customers. For example, if 30 loads of furniture has to be transported from New York to California, this can be done by having the combination of truck and rail rather than only going for the rail transportation. In order to facilitate the initial pick up and final delivery, the features of higher speed and accessibility of road transportation can be utilized.

But this is restricted due to greater time requires and higher security reasons. The customers and the suppliers of the consignment have to bear the cost associated with the security of the shipment. The continued productive supply chain activities can be ensured due to explicit support from the customers and the suppliers. In fact, there are some other limitations too which are as below:-

There is a limited financing facility for the infrastructural development

There is no full corporation among the various modes

Different modes have different resource allocation

There is a requirement from the government to consider intermodal transportation rather than focusing on only one mode.

There are some serious issues related to labour and management

It requires having a better public-private partnership

There is a requirement to have a better coordination between the transportation planning and environmental, energy and other relevant agencies

There is also an absence of coordination among various countries to promote the intermodal transportation

This is also restricted due to urban congestion