Intermodal Transportation In The US

Running head: INTERMODAL TRANSPORTATION IN THE US 1

Intermodal Transportation in the US

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INTERMODAL TRANSPORTATION IN THE US 2

Introduction

Since the pre-industrial era, changes in the amount and composition of cargo moved for

long distances in the domestic and global markets resulted in key changes in freight handling and

movement. Major cargo routes evolved in response to market trends fueled by consumer

demands. The high demand for transportation services saw the conceptualization of intermodal

transportation, which forms a key pillar of the world trade and the American economy today.

Intermodal transportation entails the use of different modes of transport to distribute goods

packed into a loading unit such as a container, from the manufacturer to the client or market. It

aims at integrating several modes of transport to improve efficiency in the distribution of goods.

It has developed gradually in history since the construction of rail networks.

The changes in the transport sector have emerged due to alteration in trade dynamics and

innovation in the society. Actually, the mobility changes in the domestic and global market has

resulted in significant changes in freight handling and cargo movement. Innovation has also

contributed towards the development of better transport strategies and machines. In the US,

legislations have been formulated to challenge state and federal authorities to increase linkages

among water, land and air transport modes to improve the effectiveness of the networks in

promoting intermodalism. Further, consumer demands continue to influence the market trends

and response towards the dynamics in the transport sector. Increased demand for transport

services catalyzed the emergence of intermodal transportation. The model plays an essential role

in enhancing global trade. The US intermodal transportation is essential to the nation’s economic

health and well-being of the users. The creation of better policy and legal framework is

instrumental towards meeting the needs of passengers and business operators, while recognizing

the limitations, socio-economic, and environmental considerations.

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Discussion

The American rail sector experienced challenges in the 1960s. At the time, the industry

had lost portion of its business to other modes of transport. In particular, air and automobile

transport remained attractive to most people. The creation of intermodal transport was

instrumental in solving the crisis as well as developing stimulus to the US rail industry. With

time, traders started experiencing delays in receiving goods hence companies and business

operators lost substantial amount of money. Transport industry is essential in the enhancing the

movement of goods and people across regions. The industry has considerable input on the

American economy (Pallme, Lambert, Miller, & Lipinski, 2015). The US government has

engaged in regulation measures of the industry to help in streamlining the industry. Legislations

such as Motor Carrier Act and Staggers Rail Act have been formulated to make the industry

profitable. Further, these legislations have improved competitiveness and efficiency in the

transport sector. The enactment of the Intermodal Surface Transportation Act (ISTEA) was a

major step towards emphasizing the significance of the new concept. ISTEA also played an

important role in encouraging state and federal authorities to create linkages that would support

intermodal transportation.

In the history of transportation in the United States, four major modes of transport have

been used to carry goods. These are road, air, water and rail. Water transport transports bulky

cargo at low costs while air transport moves light cargo fast. On the other hand, rail transport

moves bulky goods over long distances on land, while road transport moves limited cargo over

short distances. Various factors have to into play in recent years in the US regarding the nature of

transportation, the volume of cargo hauled and the distance covered.

INTERMODAL TRANSPORTATION IN THE US 4

The movement of cargo using two or more modes of transport has been around since time

immemorial. Waterways were used to move goods and people in the early times. During the

nineteenth century, rail networks and railway terminals evolved followed by air and pipeline

networks. Since then, these modes of transport have been used to move cargo from one point to

another in the United States (Konings, Priemus, & Nijkamp, 2008). For instance, in the pre-

industrial era, goods were transferred from ships to wheeled vehicles on land. The development

of docks and ports facilitated the process. After the construction of railway networks and

terminals, cargo exchange among the various modes of transport expanded.

Intermodal transportation involves the usage of different modes of transport. Various

kinds of transport are integrated to improve efficiency in movement of goods and people. Non-

road transportation appears better than road transportation. Road and rail transport requires huge

infrastructural developments. Further, the mode of transport contributes to air pollution due high-

energy dependency. As such, nations around the world have started embracing intermodal

transportation to enhance mobility, and lessen negative effects such as pollution and delays

associated with rail and road transport (Lee, Oduor, Farahmand, & Tolliver, 2014). The approach

enhances connectivity in the regions that are not connected or difficult to move. Intermodal

transportation enhances efficiency in mobility of goods across regions hence remains a key pillar

in trade and American economy.

Business operators also benefit from the consolidation of suppliers. As such, the move

has lessened time taken to transport raw materials and finished products from one place to

another. Intermodal transportation is efficient, economical, and environmental-friendly.

Companies benefit from cost-effective means of transport due to flexibility. Experts consider that

efficiency in the movement of goods has resultant economic benefits. It is noteworthy that the

INTERMODAL TRANSPORTATION IN THE US 5

transport sector is a key pillar in supply chain. Moreover, intermodal rates brings along various

alternatives that allow users to explore cheaper options. Transport goods from California to New

Mexico, for instance, may require utilization of intermodal system. Doing so allows the users to

benefit from faster and cheaper alternatives (Lee, Oduor, Farahmand, & Tolliver, 2014).

Since its development in the 1980s, intermodal freight transportation improves efficiency

and reduces the cost of transport for many shippers. The benefit has resultant effects on business

operators and passengers. The modes of transport involved in the intermodal network offer

differential cost-benefit advantages due to the variation in their average distances covered

(Bhattacharya, Kumar, Tiwari, & Talluri, 2014). Moreover, intermodal mode of transport

provides more value to the consignors and consignees. The benefit is attributable to the high

level of energy efficiency attained because of the integration of various forms of transport

(Bhattacharya, Kumar, Tiwari, & Talluri, 2014). In addition, intermodal transportation enhances

reliability, safety, and capacity. Shippers using intermodal freight transport can access better

equipment and regular transit timetables. For this reason, companies using intermodal

transportation can streamline their logistical issues, which can be cost saving.

Since the 1980s, sensitizations for improvement of infrastructure coupled with

technological developments have facilitated the feasibility of intermodal transportation (Konings,

Priemus, & Nijkamp, 2008). The ISTEA Act of 1991 is proof of the increased emphasis placed

on intermodal transportation by the United States Department of Transportation. Intermodal

transport continues to gain significance in the movement of goods with the primary idea of

consolidating loads to enhance efficiency in long-distance transportation, particularly by rail or

sea vessels. This concept explains the popularity and significance of containerization in the US

today, which is an ideal example of intermodal freight transportation. Through intermodal

INTERMODAL TRANSPORTATION IN THE US 6

transportation, the US consignors are able to move containers for long distances to their

consignees through various chains and vice versa. Firms operating in large plantations, for

example, move raw materials to industries at cheaper costs, and reduced delays.

The growth and expansion of multimodal transportation gradually paved way for the

introduction of intermodal transportation in the late 20

century (Konings, Priemus, & Nijkamp,

2008). Contrary to multimodal transportation, intermodal transportation integrated cargo

movement from one mode to another in a unitize manner. In qualitative terms, intermodal

transportation was very distinct from multimodal transportation. The approach improved

efficiency through increased competition among firms in the freight sector, and sought to

enhance transportation by increasing safety, speed, and reducing congestion thereby enhancing

efficiency. Greater efficiency led to lower operation costs and increased the competitiveness of

American freight firms in the global cargo transport industry. Increased economic productivity

will make the country competitive in the global market hence generate higher returns for the

nation’s future. Also, improved air quality and environmental conditions are essential

considerations in enhancing economic activities.

Additionally, intermodal system is environmental friendly hence effective in improving

carbon footprint. For example, using trucks in transporting goods for long distances has the

potential to emit higher amounts of carbon compared to using electric trains to transport similar

goods. Intermodal shipping saves time for the users. It also aids in saving money since one does

not have to deal with disruptive weigh stations and traffic patterns (Konings, Priemus, &

Nijkamp, 2008). Nonetheless, intermodal transportation encounters challenges such as insecurity

and disruption due to under-served regions. Some regions lack sufficient infrastructures to

enhance the usage of the intermodal system. Shipping, for instance, can only take place in the

INTERMODAL TRANSPORTATION IN THE US 7

ocean or large seas. Further, non-uniform laws detailing the cross-regional movement hinders

mobility of goods (Konings, Priemus, & Nijkamp, 2008). Slow development of infrastructural

facilities has caused the slow growth of this mode of transport, but the decentralization of

infrastructural decisions may facilitate its expansion. As such, there is need to restructure

American institutions and policies to support and encourage intermodal transportation. As seen

in the discussion above, the cons about the process require awareness and increased

infrastructural development to enhance its usage.

Conclusion

Intermodal freight transportation is a significant factor in the world trade today. By

integrating various transport modes, intermodal transportation generates economic benefits to the

users. In particular, the mode helps in enhancing logistics and time management. The

government played a key role in ensuring that intermodal transportation develops through

initiatives such as infrastructural development and enactment of the ISTEA Act of 1991 to

oversee its growth. It offers the shippers several benefits that include reduced costs, reliability,

capacity and more value compared to using a single mode of transport. Better transport services,

efficiency, and convenience in supporting economic activities within a region. It is upon the US

government to work closely in encouraging users to adopt intermodal transportation

INTERMODAL TRANSPORTATION IN THE US 8

References

Bhattacharya, A., Kumar, S. A., Tiwari, M. K., & Talluri, S. (2014). An intermodal freight

transport system for optimal supply chain logistics. Transportation Research Part C:

Emerging Technologies, 38, 73-84.

Konings, R., Priemus, H., & Nijkamp, P. (2008). Transport Economics, Management and Policy

series : The Future of Intermodal Freight Transport: Operations, Design and Policy.

Cheltenham, Gloucestershire, UK: Edward Elgar Publishing.

Lee, E., Oduor, P. G., Farahmand, K., & Tolliver, D. (2014). A coupled linear programming

model with geospatial dynamic trip assignment for global-scale intermodal

transportation. Maritime Economics & Logistics, 16(1), 33-54.

Pallme, D., Lambert, B., Miller, C., & Lipinski, M. (2015). A review of public and private

intermodal railroad development in the memphis region. Research in Transportation

Business & Management, 14, 44-55.

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