DSM 2306 Integrated Transport and Distribution Management in Shipping

5. Intermodalism 5.1 Definition

Definition: Intermodalism Intermodal freight transportation involves the use of two or more modes of transportation in a closely linked network for the seamless (smooth) movement of goods. Door-to-door transportation of freight in two or more modes of transportation. Containerization - the transport of goods involving direct transfer of equipment between modes without any handling of transported goods. For example, containers transferred directly from a containership onto rail cars, or a highway trailer transferred from a truck onto rail cars. Transloading - is the process of transferring a shipment from one mode of transportation to another. Intermodalism, in a more broader sense, can be defined as the movement of goods on two or more modes, involving either direct transfer (as in the case of containerized transport), or intermediate storage (for example, shipments involving truck-rail transloading or cross-docking at LTL terminals, wherein there is intermediate storage and handling of goods before modal exchange).

5. Intermodalism 5.2 Elements/Types

5. Intermodalism 5.3 Intermodalism and seamless logistics

Types of Intermodal Freight Transportation Sea-Truck Involves shipment of goods in containers which are transported on trucks to/from seaports from/to their points of origin/destination. containers are directly transferred between oceangoing vessels (containerships) and trucks at marine container terminals.

Types of Intermodal Freight Transportation Sea-Rail Involves shipment of goods in containers on oceangoing vessels (containerships), which are transported by rail on the surface leg line-haul movement. In the case of on-dock intermodal yards (rail yards located on or adjacent to marine container terminals), there is a direct transfer of goods between containerships and railroad flat cars (without the use of any other mode), while in the case of off-dock intermodal yards, there is an additional leg of the container movement on trucks, which provides the link between the sea and rail modes.

Types of Intermodal Freight Transportation (con’t) Truck-Rail involves the shipment of trailers on railroad flat cars, the trailers being transported by trucks between points of origin/destination and intermodal ramps. Trailer on Flat Car (TOFC) or piggyback. Takes advantage of motor flexibility and rail’s long haul economic advantage.

Types of Intermodal Freight Transportation (con’t) Road-Railer (newest concept) Essentially a trailer that has been reinforced to ride on a rail bogey and be coupled together directly without first being placed on a rail flat car Saves weight and locomotive power and thus fuel for the railroad Special lower rates Motor competitive transit times

Types of Intermodal Freight Transportation (con’t) Air-Truck involves the movement of goods in air freight containers (Unit Load Devices - ULD), which are carried on trucks to/from air cargo terminals from/to their points of origin/destination.

Types of Intermodal Freight Transportation (con’t) Barge-Truck involves the movement of goods in containers or trailers on barges that are transported on trucks for the surface leg of the shipment. Roll-on/roll-off barge transport is an example of barge-truck intermodal movement, in which wheeled containers or trailers are transported on barges, which are loaded and unloaded by the means of ramps, without the use of cranes. [Barge - a long flat-bottomed boat for carrying freight on canals and rivers, either under its own power or towed by another.]

5. Intermodalism 5.3 Intermodalism and seamless logistics

Characteristics of Intermodal Freight Transportation Containerization Equipment Growth of containership Drayage a truck pickup from or delivery to a seaport, border point, inland port, or intermodal terminal Logistics and Operations of Intermodal Terminals

Containerization Advantages unitizes freight protects freight from weather & pilferage easy and quick to load/unload Disadvantages high cost of purchase, rental, & repair idle storage and empty backhauls economies only with large numbers not always compatible with products

Equipment Containers (international oceangoing intermodal trade) and trailers (domestic and international surface intermodal trade). Intermodal Chassis – They are wheeled frames with container locking devices which can be attached to truck tractors for the highway transport of containers. Intermodal Terminal/Yard Equipment – These are equipments used at marine and rail intermodal terminals for the terminal movement, stacking, loading, and unloading of containers/trailers, which include packers (for lifting containers from the bottom), top lifts (for lifting containers from the top), yard/reach stackers (for stacking containers), hostlers (tractors used for moving containers/trailers), and intermodal lifts and cranes for the loading and unloading of containers/trailers. Transportation Equipment – These are the main modal transportation equipments used for the line-haul transport of intermodal freight. These include truck-tractors, railroad flat cars, container and ro/ro barges, and ocean-going containerships.

Growth of Containerships

Drayage Drayage is an essential component of intermodal freight transportation, which is defined as the movement of a container or trailer on a truck between an intermodal terminal (marine or railroad) and a customer’s facility. They are additional truck trips, which need to be accounted for in order to accurately estimate total truck trips on the highway network. Heavy heavy-duty trucks (HHDT) are used for intermodal drayage. The sheer increase in size of container ships, the largest of which are approaching 15,000 TEUs in capacity, is affecting the logistics of total rail and truck drayage demand at marine ports.

Logistics and Operations of Intermodal Terminals A major operational issue related to intermodal terminals from a modeling perspective is the time-of-day operations of terminals, which have a direct impact on time-of-day activity of drayage truck trips.

5. Intermodalism 5.4 Advantages and disadvantages

Advantages Flexibility on moving freight It involves at least two modes of transportation Economies of scale The more efficient is the plan, the more savings Operational efficiency Able to find the most efficient way to move freight

Disadvantages Costly high costs that are associated with moving freight by using several types of modes of transportation Lack of communication Equipment idle time equipment that moves from one location to another, also adds to the costs

Disadvantages (con’t) Speed any time cargo is transferred to a comparatively slower means of travel, for example trains, which operate on fixed rails that may not offer as direct route as the roads a truck uses, it slows down. To operate at peak efficiency, intermodal transportation must also reduce the amount of time spent waiting in depots for a new carrier to arrive or for cargo to be unloaded. Lack of Reliability intermodal transportation is also subject to lower overall reliability on the modes of transportation; as the chain of different modes grows, the possibility of any link in the chain breaking down also increases. railroads are more susceptible to delays introduced by bad weather or equipment failure.

Disadvantages (con’t) Damage risk the possibility of damage as the freight is transferred from one method of transportation to another. this danger can be mitigated, but doing so generally involves overpacking by adding more bracing and protective material than would normally be deemed sufficient. This added weight and expense partially counteracts the advantages intermodal transportation has in terms of energy efficiency and cost. High Infrastructure Costs heavy-duty cranes and equipment necessary to manipulate large containers. this infrastructure may not exist in all places, particularly in developing countries.

5. Intermodalism 5.5 Intermodalism and Integrated transport relationship

The Basic Modes of Transportation: Railroads Rail is a long haul, large volume system (high fixed costs; own rights-of-way) Accessibility can be a problem Transit times are spotty, but are generally long Reliability and safety are generally good Premium intermodal services Straight piggyback and containerized freight Double stacks RoadRailer service

The Basic Modes of Transportation: Motor Carriers The motor carrier industry is characterized by a large number of small firms. In 1999, there were 505,000 registered motor carriers. Low cost of entry causes these large numbers. Used by almost all logistics systems and account for 82 percent of U.S. freight expenditures. Characterized by low fixed costs and high variable costs. Do not own their rights-of-way.

The Basic Modes of Transportation: Motor Carriers (con’t) Limited operating authority regarding service areas, routes, rates and products carried. High accessibility Transit times faster than rail or water. Reliability can be affected greatly by weather. Small vehicle size coincides with lower inventory strategies and quick replenishment (QR). Relatively high cost compared to rail and water; trade-off is faster service.

The Basic Modes of Transportation: International Water Carriers General cargo ships Large high capacity cargo holds Engaged on a contract basis Many have self-contained cranes for loading/unloading Bulk carriers Specially designed to haul minerals Can handle multiple cargoes Tankers Specially designed for liquid cargoes Largest vessels afloat, some VLCCs at 500k+ tons

The Basic Modes of Transportation: International Water Carriers (con’t) Container ships High speeds for ships; increasingly more common and important Larger vessels can handle up to 5,000 containers. RO-RO (Roll on-Roll off) Basically a large ferry that facilitates the loading and unloading process by using drive on/off ramps May also have the capacity to haul containers Other OBO (ore-bulk-oil) multipurpose carriers Barges (not transoceanic)

The Basic Modes of Transportation: Pipelines Refers only to the oil pipelines, not natural gas Not suitable for general transportation Accessibility is very low. Cost structure is highly fixed with low variable costs. Own rights-of-way much like the railroads. Major advantage is low rates.

The Basic Modes of Transportation: Air Carriers Cost structure is highly variable; do not own rights-of-way. Transit times are fastest of the modes, but rates are highest. Average revenue per ton mile 18 times higher than rail; twice that of motor carriers. Seek goods with a high value to weight ratio. Accessibility is low as is capability. Reliability subject to weather more than other modes.

Table 9-2: Performance Rating of Modes Selection DeterminantsRailroadMotor Modes WaterAirPipeline Cost Transit time Reliability Capability Accessibility Security

5. Intermodalism 5.5 Intermodalism and Integrated transport relationship