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Intermodal freight transport refers to the transportation of the goods and freights in intermodal containers, such that they could be transported using various modes of transport such as rail, roadways and waterways. The intermodal transportation uses intermodal containers such that the containers could be transported using various modes of transportation, without causing any damage to the goods being transported. This method reduces the cost as well as overhead of cargoes. Moreover, reduction of the cost over road is also one of the main advantages offered by the intermodal freight logistics. This assignment highlights the main issues and problems that might arise at the current logistic networks. Moreover, a solution is also proposed regarding the mitigation of the identified issues. The need for government intervention has been identified, along with the sustainability issues. In this context, Qube Australia has been considered in this assignment. The intermodal logistics and transportation are an important mode of logistics, hence adequate importance has to be given to the supply chain management, along with the assurance of sustainability.
With the growth of transportation and logistics, the intermodal transportation has witnessed a steady growth and expansion. The reliability offered by the intermodal transportation along with the reduction in the overhead has resulted in the logistic companies embracing the intermodal transportation option (Bräysy and Hasle 2014). The advantages of the intermodal transportation that makes it a popular option for the logistic companies are as follows:
The shortage in the number of drivers who drive trucks and containers, along with the excessive increase in the price of fuel, urged the logistic companies to restore to intermodal transportation (Tuzkaya et al. 2014).
The implementation of the government rules and policies and imposing various restrictions on the hours when the trucks can service on the roads have provided a big challenge to the logistic companies, where intermodal transportation is the only solution (Tuzkaya et al. 2014).
Moreover, in rail corridors, a better proposition is provided by the intermodal, than in roadways (Bräysy and Hasle 2014).
The shipping and logistic companies are always motivated to provide the best services along with reduction in the cost. Thus, their only choice is the intermodal transportation (Tuzkaya et al. 2014).
The carbon emission and pollution is significantly reduced with the use of intermodal transportation systems (Bräysy and Hasle 2014).
The shippers have a greater access to the transit schedules and they know the exact date when the products will reach the destination (Tuzkaya et al. 2014). Moreover, the intermodal transportation helps in streamlining the reveres logistics along with providing more savings.
The intermodal transportation and logistics uses a combination of various modes of transportation while moving from the customers to the destination. Since each of the transportation mode is linked with the arrival of the other, hence the dependency is very high. A simple use of two or more modes of transportation does not result in intermodal transportation (White and Lewis 2015). An effective intermodal transportation is achieved with a systematic network and streamlining of the various modes of transport that enhances the efficiency of the transportation, along with the reduction of cost (Tuzkaya et al. 2014). For example, an intermodal movement could be a shipper contract with a single service provider. A truck will load the freights into the intermodal container. The carrier will be transported to the rail terminal. In the rail terminal, the container itself will be lifted and put into a specialised carrier railway (Bräysy and Hasle 2014). Once the destination is reached, the container will be lifted off the train and transferred to a motor car (Tuzkaya et al. 2014). Finally, the goods reach the destination. Thus, with lesser movement of the products and goods, the freights reach the destination. The major functions of the intermodal transport chain include the following:
Composition: This is the process of consolidating and assembling all the inbound frights. The containers as well as the trailers belong to different suppliers (Bräysy and Hasle 2014). Thus, the trailers of the different suppliers need to be combined together, in order to transport the freights (Tuzkaya et al. 2014).
Connection: The process of connection involves the transportation of the products by the intermodal logistic systems. In some of the cases, the transportation might be across international borders. Thus, the connections have to be efficient enough to ensure smooth transfer between the various modes (Bräysy and Hasle 2014).
Interchange: The interchange occurs when the goods and products are interchanged between the various modes of transportation. The exchange points are usually the ports, railway terminals or the inland intermodal hubs (Bräysy and Hasle 2014). The exchange of the information is also needed along with the interchange of the goods. The efficiency in the exchange of the information determines the efficiencies of the modal logistic transportation.
Decomposition: This process occurs, when the container is finally delivered to the intermodal hub that is nearest to the final destination (Bräysy and Hasle 2014). The freight is then handed over to the regional distribution centre, where the local distributer distributes the freights.
Thus, a clear internetwork among the various modes of transportation and supply chain are needed for the efficiency of the intermodal transportation.
The major issues in the current network of the intermodal transportation are as follows:
Reliability: One of the major issues faced by the intermodal transportation is the reliability issues. Despite being a cheaper option along with being a better choice, the reliability issues remain (Assadipour et al. 2016). The customers keep complaining that the freights do not arrive on time and these perceptions might be based on the experience the customers had years ago (Bräysy and Hasle 2014). However, with years, the intermodal transportation has improved remarkable and the complain of being unreliable might not be a valid one (Bräysy and Hasle 2014). The lack of reliability of the logistic services is not good for the business of Qubes.
Cost: The cost factor is both an advantage and a disadvantage. The combination of the waterways, railways and roadways might often result in higher transportation cost. Thus, the geographical location is also an essential determining factor for the increase or reduction in cost. The increase in the cost will increase the price of the transportation thus, reducing the number of customers using the services, due to the increased cost.
Travel time: The travel time is actually lesser in the intermodal transportation. However, if the connectivity among the various modes of transports are not efficient enough, then the overall transportation time is increased (Bräysy and Hasle 2014). Moreover, the trade-off between the exchange points have to be efficient enough such that the travel and transportation time is reduced in the intermodal transportation (García et al. 2013).
Infrequent services: The frequency delivery is not often a regular one, such that the customers cannot rely on them. An ocean carrier usually provides services twice a week, hence the railways and the roadways transport have to be dependent on the frequency of the ocean carriers. Since the intermodal transport services are not made for, the shipment of small products and goods, hence same day delivery or multiple deliveries per day is not possible. This is a major drawback and cannot be mitigated easily, since the ocean carriers are not expected to deliver every day.
Site Constraints: The maritime ports as well as the inland hubs, where the goods are exchanged or loaded might not have enough space. The space is often a key challenge for the intermodal transportation (Bräysy and Hasle 2014). Since the containers itself are very large, hence the space for loading and unloading them is also a major issue (Crainic 2013).
Infrastructure cost: The infrastructural costs for the intermodal operations are expensive. The transportation through the waterways and the railways are expensive. Moreover, in the densely populated urban area the cost of building the infrastructure is more, thus increasing the transportation and logistics cost as well.
Losses: The losses that are incurred are more severe than the damages done in the other modes of transportation (Bräysy and Hasle 2014). More than 500 containers fall overboard every year, when the ships encounter rough sea. Thus, this is one of the greatest disadvantages of the intermodal logistic systems (Slack 2016).
Empty backhauls: The lack of balance in the international trades results in the trading lanes experiencing empty backhauls. Many of the ocean carriers are found to be empty. Thus, these empty containers are to be transported to place, where the demands of the containers are high (Qu, Bekta? and Bennell 2016).
Illicit trade: One of the major threats that are presented by the intermodal transportation is the transmission of drugs, smuggled goods and human trafficking. The containers that are transported in the intermodal logistics are often misused by the transfer of drugs or human being are trafficked (SteadieSeifi et al. 2014). Thus, the containers need to be kept away from unauthorised people, and they ate to be monitored before being transported. Thus, at each and every stage of the supply chain, the containers are to be monitored.
In order to mitigate the issues highlighted, the connectivity among the various modes of transport needs to be ensured (Bräysy and Hasle 2014). Delay at any stage, will delay the whole supply chain. Moreover, the issue of lack of reliability needs to be mitigated by online parcel tracking systems (Bräysy and Hasle 2014). The online system will be connected to the GPS of the containers, thus informing the customers about the exact location and position of the goods. Moreover, the damage monitoring system could also be installed, so that any damage to the goods could be detected by a remote system. However, in order to mitigate the issues of illegal trading such as drugs and human trafficking, the government has to take adequate initiative (FORCE 2016). These initiatives include the monitoring of the containers, along with enforcement of police at the intermodal exchange hubs and the maritime ports.
The government interventions are necessary in order to make the intermodal transportation a safe and reliable one. The government needs to take initiative to monitor the process of intermodal transport, along with restricting the access of unauthorised people at the intermodal hubs (Sahin et al. 2014). Moreover, the infrastructure needs to be facilitated by the government such that the required infrastructure could be provided at a low cost, sponsored by the government. The government needs to take initiative such that intermodal transportation and logistics could be facilitated as well as promoted (Beeferman and Wain 2013).
The logistic activities that take place in the intermodal freight transport has various sustainability issues. However, in order to ensure that the intermodal logistics is carried out successfully, the green supply chain management needs to be implemented (Bräysy and Hasle 2014). The green supply chain includes the green purchasing of the goods, along with transportation with vehicles that reduces the emission on carbon. The flows of goods from the manufactures to the customers need to follow the green supply chain along with reverse logistics (Duan and Heragu 2015). Thus, the conventional supply chain has to be replaced by the green supply chain such that the intermodal transportation issues could be mitigated. The intermodal flows have several significant impact on the environment. The emissions of the pollutant gases such as the green house gases have adverse health effects. The people living in proximity of the intermodal transportation hub suffer from various diseases along with the damage of the buildings close by (Bräysy and Hasle 2014). The agriculture is also affected adversely due to the pollution caused by the intermodal transportations and logistics.
It is recommended that in order to ensure that intermodal logistics and transportation takes place effectively, the sustainability issues are to be mitigated carefully. The uses of renewable sources of energy are to be used as fuels such that the inbound logistics could be carried out efficiently. Moreover, along with the effective operations the goods are to be delivered with safety, without any damage. This will increase the reliability of the intermodal logistics system and more customers will prefer using the intermodal logistics and transportations than the conventional ones. Moreover, it is also recommended that the reduction in the travel time is initiated with regular updates from the containers, such that the positions of the containers could be known. Regular updates of the goods being transported, along with the GPS location need to be given to the customers such that the reliability of the intermodal logistics could be achieved.
The intermodal logistics have a key role to play in the enhancement of the transportation system of goods and logistics. This is an efficient alternative to the conventional transportation system that was previously used. This assignment highlights on the Qube and its intermodal logistics. The various advantages that are presented by the use of intermodal logistics and transports have been highlighted along with the effectiveness of use. Moreover, the benefits that are obtained by the use of the intermodal logistics are much more than the conventional ones. The disadvantages that are presented by the intermodal transportation and logistics are highlighted in this assignment, along with various recommendations. The initiatives of the government, in order to mitigate the highlighted issues are also discussed in details. Finally, it is recommended that the intermodal logistics need to focus on the mitigation of the pollution and the environmental issues that are caused by the intermodal logistics. Thus the importance of the intermodal logistics have been realise along with the importance of the use of the intermodal transportation.
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