Inventory logistics cost analysis model for the proposed EU intermodal loading unit – A business case

Abstract

This study focuses on the new initiative of the European Union (EU) which deals with simplifying the intermodal product shipment approach that may lead to improvement in the available transportation logistics infrastructure. The analysis involves determining the significance in the difference between the mean total costs in using a motor carrier, an intermodal platform, or the new intermodal loading unit (ILU). The study found a clear difference between the mean total costs for a motor carrier, a regular intermodal transportation and the use of the new ILU. Sensitivity analysis showed that the regular intermodal transportation is less competitive than the new ILU. The study provides rationale for the transportation industry to more closely examine the benefits of complying with the new EU ILU standard.