Nature of Competition and Development Within Intermodal Transportation

Intermodal Transportation

Traditionally, the transport system was un-integrated and highly segmented, with each mode seeking to exploit its safety, reliability, service and cost advantages to the best of its ability so as to increase revenue and retain business. Each mode viewed the other as a competitor and, hence, treated it with some level of mistrust and suspicion. Public policy accentuated the situation further by frequently barring "companies from owning firms in other modes" (Rodrigue & Slack, 2014). This system had one significant drawback; load-unit changing procedures attracted high costs which in addition to delays and terminal costs made the transportation of bulk commodities quite expensive (Rodrigue & Slack, 2014). Efforts to integrate the different modes of transport (intermodalism) began in the 1960s.

The Office of Security Policy and Industry Engagement has ensured the effectiveness of intermodalism through the formulation and implementation of a strategy that does away with industry threat and consequence assessment, develops baseline security standards, and enhances security systems (TSA, 2013).

Technology plays a crucial role in intermodalism and hence management units such as semi-trailers, pallets, swap bodies, or containers are vital for success. The use of pallets was quite common in the past, but has since declined because their lack of protective covering and small size raised serious security concerns (Rodrigue & Slack, 2014). Concerns such as these got industries working to develop suitable management freight transfer units. Features such as the "TOFC / trailers on flat cars -- truck trailers transported on top of rail cars, and the LASH / lighter aboard ship" -- the direct placement of river barges on-board ships, began to come up (Rodrigue & Slack, 2014). The roadrailer, "a road trailer that can also roll on rail tracks," developed by the rail industry is perhaps the most outstanding feature in this regard (Rodrigue & Slack, 2014). Unlike the TOFC, the roadrailer system attaches rail bogies either in the railway yard or as part of a trailer unit (Rodrigue & Slack, 2014).

Apart from the effect of technology, intermodalism has also been influenced by public policy changes. Deregulation freed firms from federal control and did away with ownership restrictions, thereby developing "a strong impetus towards intermodal cooperation" (Rodrigue & Slack, 2014). Shipping lines could freely offer rail, as well as road services, and exploit the modal benefits seamlessly. Customers were, through the bill of lading, able to transport their wares from door-to-door without having to deal with modal barriers (Rodrigue & Slack, 2014).

The one-ticket or one-bill-of-lading feature provides another significant source of intermodal transportation competition. It has brought about a revolution in information and organization control, with each company seeking to put up distribution, processing, and data-handling systems that are reliable, cost-effective and safe. The Electronic Data Interchange has been adopted to help companies cope with the global transport system whose complexities are on an ever-rising trend (Rodrigue & Slack, 2014).