Definition of Intermodal transportation
Intermodal transport is a combined transport method involving the transportation of goods by two or more modes of transport (e.g., trucks, trains, ships, and aeroplanes) in the same loading unit (e.g., containers, interchangeable bodies, or semi-trailers), with no direct handling of goods during the transfer process. This method is achieved through the collaboration of different transporters, providing a seamless and efficient transport solution from start to finish. This improves supply chain efficiency and cargo safety and shortens delivery times.
Type of intermodal transportation
Road-Rail Intermodal Transport
It combines road and rail transport, suitable for long-distance transport. The railway undertakes trunk transport, and the road is responsible for short-distance distribution at both ends, improving transport efficiency and reducing costs.
Road-Water Intermodal Transport
Cargo is transported by road to the port and then over long distances by water (river or sea transport), which is suitable for international trade and bulk cargo transport.
Rail-Water Intermodal Transport
combines the advantages of rail and water transport and is suitable for long-distance, large-volume international or domestic transport of bulk goods such as coal, ore and grain.
Road-Rail-Water Intermodal Transport
Combining road, rail and water transport, using the respective advantages for efficient transport, is suitable for complex logistics needs such as cross-border transport.
Air-Road Intermodal Transport
It combines air and road transport and is usually used for time-sensitive goods such as fresh food, medical, or emergency supplies.
Air-Rail Intermodal Transport
It combines air and rail transport and is suitable for long-distance transport. Air transport is responsible for fast trunk transport, while rail transport is used for transit or distribution, improving transport flexibility and cost control.
Air-Rail-Water-Road Intermodal Transport
Global supply chain management commonly involves the comprehensive use of various modes of transport to maximize cost reduction and improve transport efficiency.
Advantages and disadvantages of intermodal transportation
Advantages
- Improved transportation efficiency: By optimizing the connection between different modes of transportation, the transfer time and waiting time of goods in the transportation process are reduced, making the entire transportation process smoother.
- Reduced transportation costs: Intermodal transportation can comprehensively utilize the advantages of various modes of transportation and achieve a reasonable allocation of transportation resources, thereby reducing transportation costs.
- Enhanced transportation flexibility: It can select an appropriate combination of transportation modes based on the characteristics of the goods, the distance to be transported, and the transportation time to meet the diverse needs of different customers.
- Improve transport safety: The operator of intermodal transportation is responsible for the entire transportation process and will take a series of measures to ensure the safety of goods during transportation and reduce the risk of damage or loss.
- Promote logistics integration: It helps to promote the integration and coordinated development of all links in logistics, realize the informatization, standardization and normalization of logistics, and improve logistics services.
Disadvantages
- Infrastructure connection problems: Differences in construction standards and technical specifications for infrastructure of different transport modes may lead to poor connection, such as the unreasonable layout of railway and highway freight terminals and the mismatch of loading and unloading equipment, which affect the rapid transfer of goods.
- Information system incompatibility: Each transport mode often has an independent information system, making information sharing difficult. It is difficult to achieve real-time tracking and collaborative management of transport information, which brings specific difficulties to the organization and scheduling of intermodal transportation.
- Complex operations management: As it involves multiple transport enterprises and different transport links, a great deal of coordination and communication is required, making operations management more difficult. Once a problem occurs in any link, it may affect the smooth progress of the entire transport process.
- Lack of unified standards: There is a lack of unified standards and specifications for multimodal transport documents, billing, cargo packaging, etc., which increases the difficulty and cost of multimodal transport operations and is not conducive to the international development of multimodal transport.
The difference between combined transportation and intermodal transportation
- Combined transportation: A broader concept, it refers to the cooperation between different transportation companies to complete the transportation process of goods or passengers jointly. Combined transportation can be a combination of different companies within the same mode of transportation or a simple collaboration between different modes of transportation. In the process of combined transportation, a unified operator may not be responsible for the entire transportation process. The connection and coordination between transportation companies are relatively loose. Shippers may need to sign contracts with multiple transportation companies to handle the relevant transportation procedures.
- Intermodal transportation: The emphasis is on the organic combination and integrated operation of various modes of transport. An intermodal transportation operator is responsible for the entire transportation process, providing shippers with comprehensive transportation services and liability guarantees. Intermodal transportation usually has a more complete transportation organization and management system, focusing on the seamless connection and coordinated operation of different modes of transport. Optimizing transportation processes and integrating transportation resources achieves efficient transportation of goods or passengers.
How does intermodal transportation promote the development of international trade?
Improve transportation efficiency
- Seamless transportation links: Intermodal transportation uses standardized transfer facilities and unified operations management to achieve fast and efficient connections between different modes of transportation, reducing the time goods spend in transit. For example, in sea-rail combined transport, the port’s dedicated railway lines and efficient loading and unloading equipment enable goods to be quickly transferred from seagoing vessels to railway trains for transport to inland areas, avoiding the time wasted caused by multiple loading, unloading and transhipment under traditional transport methods.
- Optimizing transport routes: Intermodal transportation can consider the advantages of various modes of transport and design the optimal route for cargo transportation. For example, for goods shipped from China to Europe, the long-distance transport advantages of maritime transport and the inland transport advantages of railways can be combined. Through the intermodal transportation route of the New Asia-Europe Continental Bridge, the transport time is significantly shortened compared to a single mode of transport, improved transport efficiency is achieved, and goods can reach the international market faster.
Reducing logistics costs
- Integration of transportation resources: Intermodal transportation can integrate the resources of different modes of transportation to achieve economies of scale. Consolidating shipments and billing for the entire journey avoids multiple transport operations and repeated billing, reducing transportation costs. For example, in combined road-rail transport, the intermodal transport operator coordinates the transfer of goods between road and rail transport, reducing costs in the intermediate links.
- Reduces cargo loss: Intermodal transportation uses standardized transport equipment and packaging, which can better protect the cargo during the transfer between different modes of transport, reducing damage and loss. Take precision electronic products as an example. In intermodal transportation, from the factory to the airport by road and then by air to the foreign destination, the entire process uses professional packaging and loading and unloading equipment, effectively reducing the risk of damage to the goods and reducing the increased costs due to cargo loss.
Expands market scope
- Connecting remote areas: Intermodal transportation can connect the transportation networks of different regions, enabling some remote areas with poor transit to be integrated into the international trading system. For example, through intermodal transit by road, rail or waterway, agricultural products from inland mountainous areas can be transported to coastal ports for export worldwide, expanding the sales market for agricultural products and providing a richer source of products for foreign companies.
- Strengthening international cooperation: Intermodal transportation promotes collaboration and trade between countries, making it easier for companies in different countries to enter each other’s markets. For example, intermodal transportation cooperation under the Belt and Road Initiative has strengthened trade ties between China and countries along the route. Chinese manufactured goods can be transported more efficiently to Central Asia, Europe and other regions. At the same time, resources and products from countries along the route also find their way into the Chinese market, expanding the market space for both sides.
Improving trade security
- Full-process monitoring and management: The Intermodal transportation operator monitors and manages the entire process of cargo transportation. Through information technology, the operator can keep abreast of the transportation status of the goods in real-time and can promptly identify and resolve any problems that arise during the transportation process. For example, during the transportation of goods, through GPS positioning and a logistics information system, the owner of the goods and the transportation company can keep abreast of the location of the goods and the transportation progress at any time. In the event of an abnormal situation, prompt measures can be taken to ensure the safety of the goods.
- Clear responsibilities: In intermodal transportation, a single operator is responsible for the entire journey, avoiding the problem of unclear division of responsibilities between different modes of transport. In the event of damage or loss during transport, the owner of the goods can directly claim compensation from the intermodal transportation operator, protecting the rights and interests of both parties to the trade and improving the safety and reliability of trade.
Promoting trade facilitation
- Simplified procedures: Intermodal transportation uses unified transport documents and standardized operating procedures. Shippers only need to complete shipping procedures once, which completes the entire transportation process and greatly simplifies the logistics procedures of international trade. Unlike traditional transportation methods, owners do not need to separately handle shipping, customs clearance, inspection, and other procedures at different transportation links, saving time and effort.
- Information management: Intermodal transportation has realized electronic and shared logistics information through the help of advanced information technology. All parties involved in the trade can inquire about cargo transportation information in real-time through the network platform and conduct electronic data exchange, which improves the transparency and transmission efficiency of trade information and facilitates the trade process.
Improve service quality
- Personalized customization: Intermodal transportation can provide customized transportation solutions according to the needs of different customers. For goods with special requirements for transit time and conditions, such as cold chain food and precision instruments, the individual needs of customers can be met, and the quality of trade services can be improved by selecting the appropriate combination of transport modes and routes.
- Customer service optimization: Intermodal transportation operators usually have a comprehensive customer service system to provide customers with a full range of services. These include pre-shipment consultation, transit tracking and coordination, and post-shipment feedback to promptly resolve any issues customers encounter during the trade and transport process, enhance customer satisfaction, and promote the sustainable development of international trade.
