There are several options when it comes to moving cargo. But, the goal of logistics managers is always to balance the best service with affordability. That balance can be achieved easily through intermodal freight transportation. But, what exactly does intermodal transportation mean? And, how does it work? This guide to intermodal transportation services has all the answers to your fundamental questions.
Intermodal Shipping and Its Types
Intermodal shipping means moving heavy freight through two or more means of transportation such as a train, ship, or aircraft. However, the most common domestic intermodal mode is rail transport, and that is what we are going to focus on in this guide.
There are two types of intermodal:
1- Contain On Flatcar (COFC): In this model, four containers can be placed onto the double-stack car. Hence, it is more cost-effective than the latter model.
2 – Trailer On Flatcar (TOFC): In this type, the over-the-road trailer is kept directly onto the well car.
What are your container options?
Many shippers that regularly move high volumes of cargo have already invested in their own containers. However, logistics companies also control some domestic containers, while some containers are owned by railroad-controlled pools.
If you depend on a company container to load your cargo at the origin, the flow of containers is controlled by the shipper. As with other cargo movements, where there is a robust inbound flow, there are more chances of backhauling.
How does Intermodal Shipping Work?
Intermodal freight uses typically uses three separate carriers, unlike full truckload shipping which uses only one carrier who transports the goods from the origin point to the destination. The three parts of intermodal transportation are:
Road: This is part one where a drayage carrier or a drayman takes the empty container from the point of origin and goes to the shipper. The container is then loaded there and the carrier takes t to the rail ramp.
Rail: This is part two where the railroad brings the container to the final rail ramp from its origin rail ramp.
Road: This is part three where the destination drayman or drayage carrier collects the container from the ramp and takes that to the receiver.
2 Major Reasons Why You Should Opt For an Intermodal Freight
Even though intermodal is slower and more complex as compared to full truckload, there are still benefits attached to it. What are those benefits? Let’s take a look:
1 – It is more affordable
When on a budget, opting for intermodal is the best option for moving your freight. It is often hundreds of dollars cheaper than a full truckload – sometimes even thousands of dollars, depending on the season, lane, and current truckload market. Hence, savings on every cargo movement can save you a great deal of money over the course of a year.
2 – It is more fuel-efficient
Did you know that rail shipping is 4x more fuel efficient than truckload? Wondering how? Well, a train can carry a ton of cargo 479 miles on one gallon. Besides, a fully loaded train reduces around 280 trucks from the roads, making the air cleaner to breathe. And, not to mention its usefulness in reducing greenhouse gas emissions. This is what makes intermodal shipping sustainable.
3- It prevents cargo theft
Since the train is continuously moving throughout its journey, it is more secure. On the other hand, fragile goods may get damaged by harmonic vibrations, but it is not really an issue if the cargo is loaded and secured correctly.
How to Choose the Right Service?
It is important to have an intermodal service provider to move intermodal freight. Being a shipper, you cannot directly go to the railroad to do so.
When it comes to choosing a provider, there are a few different kinds of providers, such as:
1- Non-asset-based carrier (IMC)
2- Asset-based carrier
3- Asset-lite carrier
4- Reseller
All of them have some strengths as well as weaknesses. So, choose a provider that fits your requirements the best based on your supply chain. You can also use a combination of providers.
Challenges You May Face with Intermodal Shipping
There are some challenges that come with intermodal freight movement mainly due to its complexity. Some of these challenges include:
Delays
Intermodal normally takes a day longer than a full truckload. In fact, when there are more than two modes involved, it may take two to three days longer. These long transit times are something you must keep in mind when opting for intermodal shipping.
Operational Complexities
When using intermodal shipping, you’re required to manage various modes of transport. For some shippers, it can be challenging without visibility solutions for the supply chain.
The Final Word
All in all, everything has its pros and cons, and the same is the case with intermodal shipping. Now that you have understood how it works and what are some major benefits and challenges attached to it, it will be easier for you to decide your mode of transportation.