What is the economic benefit of Intermodal Transportation.

 Technology is responsible for the improved global supply chains and the increased advancement in the technological sector is also marked with the improved as well as the most effective intermodal transportation framework (Chiambaretto & Decker, 2012). However, for the businesses with limited intermodal experience, moving forward to adopting this mode of transportation can be quite a challenge. Therefore, there is the need to highlight some of the many benefits of an integrated system of transportation or intermodal transportation and as such, offer to discuss how it can help businesses to improve their supply chains. Briefly, the aim of this piece is to expound on the thesis statement that claims that in todays transportation industry, intermodal transport has many advantages, and as technology continues to improve, the future of supply chains is becoming advanced thus the need to prioritize intelligent transportation.

One of the benefits that business can boast of when using an intermodal approach to transportation is that the system is more cost-effective (Meisel, Kirschstein & Bierwirth, 2013). Taking cost into consideration, intermodal transportation is associated with high flexibility. The implication is that intermodal rates have been lowered in the recent years, considering that the fuel expenses that are related to the drayage have also been skyrocketed. For instance, when transporting goods to destinations exceeding 800 miles, it is cheaper through the intermodal transport as compared to road trucking (Chiambaretto & Decker, 2012). The current economy is yet to recover from the effects of the Great Recession, and for production to pick up, the transportation industry must prepare for the influx in transport. On the other hand, there is the driver shortage coupled with the increased fuel prices, implying that trucks alone are never sufficient to handle the transportation needs of a nation.

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