The last mile, inbound logistics and intermodal high capacity transport - the case of Jula in Sweden

Abstract

Some of the biggest challenges for intermodal transport competitiveness are the extra handling costs and pre- and post-haulage costs. This paper investigates the use of intermodal high capacity transport (IHCT) for the intermodal transport chain in general and pre-and post-haulage in particular. The aim is not only to measure the cost reductions from using larger vehicles but to understand how better management of inbound flows through increased integration of logistics processes can increase the efficiency of the last mile. The paper analyses the haulage of two 40-foot containers simultaneously when part of an intermodal transport chain. Data were collected from a demonstration project in Sweden, where permission was obtained to use longer vehicles on an approved route to and from the nearest intermodal terminal. Results indicate substantial cost savings from using longer vehicles for pre- and post-haulage. In addition, the business model whereby the shipper purchased their own chassis and permission was obtained to access the terminal after hours for collecting pre-loaded chassis brought additional cost and planning benefits. The total cost saving was significant and potentially eliminates the cost deficit associated with the last mile.