One emerging transportation network that offers these attributes is intermodal shipping. Intermodal transportation is the combination of two or more methods of moving freight in order to reach distant market and distribution points economically. These transportation combinations can include rail, truck, airplane, or barge. Manufacturers appreciate the convenience, efficiency, and cost effectiveness of intermodal transportation networks. In fact, the volume of goods distributed by intermodal networks has risen dramatically from 3.1 million containers and trailers in 1981 to approximately 8 million in 1994.
Intermodal transportation minimizes transportation costs in two ways.
First, it reduces the terminal, or loading costs through standard containerization. Goods are packaged in 48 ft. This process takes only five minutes and no unloading is involved. Second, intermodal transportation reduces line-haul costs by utilizing the cheapest and most efficient mode of transportation for the length of the journey. Typically, rail is more cost effective when travel distances exceed 300 miles, while trucks are more cost effective when travel distances are less than 300 miles.