Chapter 6
Intermodalism and Land Transport
Intermodalism
 One of the most important developments in
the global business environment.
 The use of two or more modes of
transportation in moving a shipment from
origin to destination, primarily through the
use of the “container”.
 There is a coordination between the modes.
 Container holding the cargo is exchanged
between modes.
 The development of the container allowed
the growth of intermodalism to be possible.
Intermodalism
 The intermodal service combines the
advantages of each mode used.
 For example air-truck intermodal
transportation combines the
advantages of the motor carrier’s
accessibility and lower cost with the
speed of the air carrier.
Intermodalism
 A mode common to most forms of
intermodal transportation is the
motor carrier.
 The motor carrier's high degree of
accessibility enables it to serve points
that other modes are physically
incapable of serving.
Intermodalism
 If there is no coordination between
the different modes, it is called
multimodalism.
Intermodalism
 Container (cargo container) is a big steel or aluminum
box into which the freight is loaded.
 Improves the efficiency of interchange among modes.
 Reduces the potential for damage and theft.
 Both overall transit time and the transit time
consistency of containerized intermodal shipments
improve.
 All containers adhere to certain standards.
 Water container comes in two standard lengths: 20
feet and 40 feet.
 Beak-bulk cargo: moving cargo in their own boxes.
Shipping Containers at Port of Elizabeth, New Jersey
Intermodalism
Benefits of using containers:
 Security: Harder to get into.
Identified by only a serial number on
the outside. Have seals put on the
latches.
 Safety: Safer. The metal boxes are
very strong. More weather resistant.
Machines do handling, so it is safer
for employees as well.
Intermodalism
 Efficiency: Since each container is the
same, special handling equipment is
used. Can be handled quicker. Faster
to take one intermodal container off a
ship than any other containers.
 Speed: Speedier loading. More cargo
can move through one port in a given
amount of time. Takes more time to
load and offload break-bulk cargo.
Intermodal equipment
 Intermodal equipment is all standardized.
 There are five common standard lengths for
containers, 20-ft, 40-ft, 45-ft, 48-ft, and 53-ft.
 The vast majority of containers are either 20 ft or 40
ft long.
 They are 8 ft (width) × 8 ft 6 in (height).
 Max. weight limit for 20’ is around 20,000 kg; for 40’
is 25,000 kg.
 Higher value and heavy cargo move in smaller lots, so
20s are more common.
 Most of the world’s containers have been built in
Korea and Taiwan.
 More recently, the majority of new container
construction has been occurring in China.
Intermodal Equipment
 Air cargo does have intermodalism.
Because pickup and delivery service is
provided by truck.
 The container used in intermodal air
shipments is not the standard 40-foot-long
shape.
 It is smaller (usually under 20 feet),
narrower than the standard 8-foot ocean
container. Also prone to damage.
 There are about 20 different sizes of air
cargo containers and pallets.
Types of containers
 Dry: basic container.
 Open top: no top, so cargo can be laid
down into the container. For over-height
cargo.
 Flat rack: no top or sides, just the bottom
and two ends.
 Platform: there is only the bottom.
 Refrigerated: a refrigeration unit-ideal cold
storage for products such as: Meats, fish,
vegetables, ice, plants, etc.
Types of containers
 Live animals: horse carriers.
 Tank: to carry any liquid
 Bulk: there is a hole on the top so bulk products can
be poured in.
 Containers are loaded to and unloaded from the ship
by crane.
 TEU: container capacity is measured in twenty foot
equivalent units (TEU)-the amount of cargo that
would fit in a 20-foot intermodal container.
 Container rates are quoted by water carriers on a TEU
basis.
A container ship being loaded by a crane
Managing Intermodal Transport
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The most important aspect of intermodalism is operating and management
issues.
Intermodalism requires cooperation and coordination among multiple
companies.
By working together, trucking companies, intermodal marketing companies,
ocean steamship lines and railroads are providing a cost-effective,
seamless, reliable, efficient, safe and environmentally friendly way to move
freight from origin to destination.
Shipments can be moved from a containership directly to a truck or a
railroad and then delivered to its final destination. Throughout the process,
intermodal facilitators, or third-party logistics providers, arrange for each
piece of the move from pick up to drop off.
Today, all parties in the supply chain use state-of-the-art technology to
monitor shipments every step of the way. With real-time information,
today's intermodal companies are keeping track of schedule changes and
watching out for their customers' shipments so they don't have to.
Intermodal traffic patterns are also important.
A special infrastructure is required to handle intermodal cargo.
In US there are 2 major lanes carrying intermodal cargo across the country.
One is from Seattle to north, other from Los Angeles across the south.
Roadway Transport
 One of the most important modes of transportation
for freight movement in the 21st century.
 The public provision of highways has played a major
roe in the development of the motor carrier because
of the ubiquitous level of accessibility provided by the
comprehensive US highway system.
 An important link in the intermodal chain. Links the
ocean port or rail yard with the local origin or
destination.
 Used for international trade as well.
 In Europe trucks are the main mode for international
shipments since the rail system for cargo is not well
developed.
Roadway Transport
Advantages of roadway transport:
 Greater accessibility
 Frequency of delivery and pickup
 Lower transit time
 Can be loaded quickly
 Not constrained to providing service
over a fixed railway or waterway.
 Lowest entry costs.
Roadway Transport
 Some of the trucking fleets are owned by
shippers, some are independent, and some
are owned by other carriers.
 Shipper-owned fleet: shippers owning their
own trucks offer trucking services to other
shippers for several reasons.
 Trucking is most influenced by local rules
such as speed limits, registration, etc.
 The longer the trip the more legal
jurisdictions it passes through.
Roadway Transport
 Safety issues are very important (accidents).
 Trucks compete mostly with railroads, but rarely with
other modes.
 Trucks are limited in the amount of cargo they can
carry. The cargo-carrying capacity of these vehicles
depends on the size (length) and the state maximum
weight limits.
 Also there is a limit to the number of trailers that can
be pulled at one time. A tractor-trailer combination
with five axles is permitted in most states to haul a
max of 80,000 pounds gross weight (110,000 pounds
in Michigan).
Roadway Transport
 Weight laws are for safety reasons.
 Roads can only stand a certain
amount of weight.
 Trucks need to be registered
somewhere.
 International trucking gives the
carrier the option of where to register
their trucks.
Railroad Transport
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Best for large loads going long distances. Can handle large-volume
movements of low-value commodities over long distances.
No weight or volume restrictions.
For loads over 30,000 pounds over distances exceeding 300 miles.
Motor carriers are constrained by volume and weight.
Pipelines compete directly with railroads, however they are
restricted largely to the movements of liquid and gas.
Historically trains in the US were privately owned and operated.
Can handle almost any type of commodity.
Have high fixed costs because they provide their own right–of-way
and terminal facilities.
Have very low variable costs.
Restrictions on dimensions. Trains’ load cannot exceed tunnels’ and
bridges’ dimensions.
Liability for loss and damage is usually assumed by the railroads.
Damage occurs because rail freight often goes through a rough
trip due to vibrations and shocks.
Railroad Transport
 Intermodalism is a large part of rail cargo.
 Containers may be placed on the back of
the flatcar, called container-on-flatcar
(COFC).
 If the whole trailer is placed on the flatcar,
it is called trailer-on-flatcar (TOFC).
 TOFC is faster.
 Intermodal service (TOFC/COFC) has
received renewed interest since 1980 and
there has been a dramatic growth in the
movement of such traffic by railroads.
A flat car carrying two containers.
Double-stack container train loaded with 53 ft containers.
Railroad Transport
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Railroads are constrained by fixed right-of-ways and
therefore provide differing degrees of service completeness.
If both the shipper and receiver possess rail sidings, then
door-to-door service can be provided. If no sidings are
available, the movement of goods must be completed by
some other mode.
The railroad system provides a truly nationwide network of
service.
Each railroad serves a specific geographic region, and
freight and equipment are exchanged at interchange points.
Less dependable in keeping to a schedule.
Slow.
Competition is low.
Railroads do not have the standardization.
Rail gauge, the width of the track, differs from region to
region.
Inland shipping
 Includes rivers, canals, and lakes.
 It is mostly done at US Great Lakes, Mississippi River,
Russia’s Great Rivers, China’s great rivers, and
Europe's’ river systems.
 There is navigability issue. Rivers may be too shallow,
or the depth changes with the shifting mud and sand.
 Seasonal variation also creates problem.
 Inland shipping companies have low fixed costs.
 Government pays for dredging and navigational aids.
 The vessels are more expensive than trucks.
 The biggest competition is railroads and pipelines.
Pipelines
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The pipeline industry is unique in a number of important aspects, including the type of
commodity hauled, ownership, and visibility.
Pipelines are limited in the markets they serve, and very limited in the commodities they can
haul.
Pipelines are the only mode with no backhaul; products only move in one direction through the
line.
Pipelines are a very specialized carrier in that they transport a very limited variety of products:
oil, natural gas, coal, and chemicals.
With some exceptions, oil companies have been the owners of the oil pipelines.
Some pipelines are joint ventures among two or more pipeline companies because of the high
capital investment.
Because of market-control tactics used by some oil companies, an important US Supreme
Court ruling after WWII required pipelines to operate as common carriers, even if owned by an
oil company.
Pipelines are low-cost carriers when operated at capacity, but high levels of fixed cost because
of the heavy investment necessary in infrastructure.
Pipelines have a very good loss and damage record.
Pipelines provide a warehousing function because their service is slow.
Their dependability is another advantage. They are virtually unaffected by weather conditions
and they very rarely have mechanical failures.
They offer a fixed route of service and it cannot be easily extended to complete door-to-door
service.
They have limited geographic flexibility or accessibility.
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Druzhba pipeline
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