The Impact of Regulatory Changes on Intermodal Freight Transport
Intermodal freight is transporting goods via containers using multiple modes of transportation that includes trucks, trains, ships, and airplanes. This mode of freight transport utilizes various modes of transport during a single journey, which is why it is cost-effective. However, the government makes some regulatory changes now and then, impacting intermodal freight transport.
Recently, regulations have evolved solely due to technology ruling the industry, security concerns, and a focus on sustainable measures in logistics. Let us find out how the regulatory changes on intermodal transportation are changing the ways to shape a better future.
The European Court of Auditors Special Report 2023
Intermodal transport consists of goods in a container using a combination of transport modes such as road, rail, or air. As per the European Court of Auditors’ special report, intermodal freight transport was seen as not competing on equal ground with road transport due to regulatory and infrastructure barriers. So, the commission made several recommendations to increase the effectiveness of the EU support in the area.
- The commission highlighted the need to standardize rail gauges and signaling systems across member states to ensure seamless cross-border operations. This would reduce delays and improve the efficiency of rail-based intermodal transport.
- The report suggested allocating more targeted EU funding to develop intermodal hubs and upgrade port connections. This would create a more interconnected transport network.
- The commission recommended streamlining the customs procedures to reduce the bureaucratic burden on intermodal operators.
- The EU also proposed using low-emission transport modes such as rail and maritime transport to reduce carbon emissions. Supporting eco-friendly alternatives to road transport aligns with the EU’s Green Deal objectives. The EU Green Deal Package includes policy initiatives that aim to set the path to a green transition to reach climate neutrality by 2050.
- To benefit intermodally, the commission proposed revising the TENT-T regulation for the new requirement for freight lines to comply with the P400 rail gauge to accommodate large containers.
Recent Regulatory Changes That Will Impact Intermodal Freight Transport
The EU report made some conclusions and recommendations on how intermodal transportation can be improved. It is said that regulatory changes should be prepared to enhance the competitiveness of intermodal transport. As we can see, the aim is to improve operations by technology to improve competitiveness and sustainability; here are 5 of the regulatory changes to focus on:
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Industry-Specific Data Privacy Regulations
Today, more businesses rely on digital systems to manage intermodal freight operations. The regulatory changes in the EU, such as the General Data Protection Regulation (GDPR), are now being applied to the intermodal and logistics industry in general. These changes focus on safeguarding sensitive data across intermodal transport, which uses several interconnected modes of transport to track shipments.
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Navigating Customs and Import/Export
The changes in customs regulations and import/export impact intermodal freight. The EU regulatory updates aimed to simplify customs procedures and introduced customs declarations. This helped reduce paperwork border delays and enable smoother intermodal transitions between countries. Moreover, the operators need to be well-versed in import/export procedures to avoid facing any penalties or their goods being seized. Every country will have different rules for customs imports/exports, so intermodal operators need to be well aware of any recent regulations.
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Incorporating Technological Advancements
Technology today is at the forefront of bringing competitiveness to intermodal freight transportation. The EU report focused on promoting digital solutions such as automation at rail terminals and ports, real-time tracking, etc. to enhance the transparency in intermodal transportation. It is said to shift the focus of incorporating digital technology to make processes simpler, faster, and more efficient. These advanced digital solutions make handling operations efficient and make it easy to stay compliant.
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Freight Forwarding Regulations
Freight forwarding refers to moving goods through coordination between different transport modes, such as intermodal. There can be shipments making several stops before reaching their final destination. The recent EU updates now require freight forwarders to take more responsibility for maintaining transparency in transportation.
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Environment Sustainability
Environment sustainability is one of the most crucial aspects of the recent regulatory changes in intermodal freight transportation. The EU’s Green Deal targets a significant reduction in carbon emissions from transport. This has an impact on intermodal transport to start adopting sustainable practices. These regulations incentivize using eco-friendly vehicles and alternative fuels like electric trucks and hydrogen.
Wrapping Up
We hope now you will be aware of the recent regulations in the intermodal transport industry and how they will impact operations. While many trade agreements, foreign laws, and US export regulations have made recent updates about the logistics industry, In this blog, we focused on the EU report on the intermodal industry and its recommendations.