When you are using more than one mode of transportation for the movement of goods from point A to point B is known as Intermodalism?
What Is Intermodal Freight?Intermodal freight consists of products and raw materials that are transported in a container by a variety of vehicles, such as container ships, semi-trailer trucks, and trains. Containers designed for intermodal freight often adhere to International Organization for Standardization (ISO) dimension guidelines, which allow the freight to remain in the same container when transferred between modes of transportation rather than having to be moved into a new container of a different size. Show
Key Takeaways
Understanding Intermodal FreightThe emergence of standardized shipping containers has allowed products and raw materials to travel faster and at a reduced cost. The United States military is often credited with the containerization of shipping during the 1950s when the Department of Defense's standards were adopted by the ISO. Intermodal transportation should not be confused with multimodal transportation. Multimodal transportation is conducted under a single contract, whereas intermodal transportation is conducted according to multiple contracts with different carriers. In addition, multimodal uses different modes of transport, but under one bill of lading, and the same carrier is responsible for moving shipments in all of the modes. Advantages and Disadvantages of Intermodal FreightAdvantagesBusinesses use intermodal freight shipping both domestically and internationally because it lessens the amount of handling performed with the cargo during the trip and can reduce costs. Intermodal freight transportation is also a safe and secure method because it eliminates the handling of the freight itself during transportation, which reduces damage and loss, drivers can handle more loads in a shorter period, and additional security is provided at terminals, rail tracks, and ramps, which prevents theft. Intermodal transportation is eco-friendly. Rail transportation is more efficient. According to Inbound Logistics, rail can move one ton of freight almost 450 miles on one gallon of fuel. This fuel efficiency creates less greenhouse gas and carbon pollution as goods are shipped from coast to coast. DisadvantagesIntermodal freight transportation requires a substantial outlay in infrastructure costs. Heavy-duty cranes are necessary to lift containers at different ports when changing the mode of transport. For example, when a container arrives at a seaport, it must be transferred to a flatbed, rail, or truck. In addition, investments in rail and road access are required. Seaports need rail and road access so that railways and trucks can transport goods to and from the port. The Intermodal Shipping ProcessA typical import shipping process entails that after arriving from overseas, containerized cargo is moved from a container port to a rail yard for domestic shipment. The cargo is moved onto the rail and is transported to the next location, which could be hundreds of miles inland. Once the cargo arrives at its destination, it is placed on a truck to be driven to its final destination dictated by the original order. Growth in Intermodal FreightAccording to Freightquote.com, there are approximately 25 million containers moved each year by intermodal shipping. A market research report by Technavio predicts that intermodal freight transportation will grow at a compound annual growth rate (CAGR) of approximately 7% from 2020 to 2024, growing by $49.8 billion in that time frame. The report cites cost advantages for shippers as the reason for its expected growth. In addition, the cost of the road as a single mode of transportation is increasing. However, multimodal transportation, where convenience is a significant factor because a single company is responsible for the movement of cargo across all modes, is expected to impede the growth of the intermodal freight transportation market in the future. What is Intermodalism in transport?Intermodal shipping refers to moving freight by two or more modes of transportation. By loading cargo into intermodal containers, shipments can move seamlessly between trucks, trains and cargo ships.
What is the term used for two or more different modes of transport in moving goods from origin to destination?Intermodal is defined as the movement of cargo from origin to destination using several modes of transportation. Each mode is operated by a different carrier, and each leg requires an independent contract.
What is Intermodalism and Multimodalism?Intermodal transportation sees each mode of transportation as a different contract. On the other hand, multimodal transportation maintains higher efficiency as the entire process comes under the monitoring radar of one single carrier.
When we use two or more carriers of different modes for the movement of goods to take advantage of inherent economies of scale is called?Intermodalism involves using at least two different modes in a trip from an origin to a destination through an intermodal transport chain, which permits the integration of several transportation networks.
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