What is Intermodal Transport & What Are Its Benefits?

October 5th, 2022

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A shipping yard full of cargo containers.

Using two or more different means of transportation to move freight is known as intermodal transport. This transport strategy is a common method of moving products. Basically, intermodal logistics manages standardized shipping containers rather than transferring products from one vehicle to the next during their transfer.

Intermodal freight transport, which fully utilizes the flexibility and door-to-door capabilities of road transportation, ensures the most effective combination of all modes of transportation.

The Growing Popularity of Intermodal Transport

Why is intermodal transport now gaining in popularity? A number of variables have come together to accelerate the transition of international transportation covered by intermodal freight transportation.

For one, infrastructures that are better suited have made this possible. Better connections between ports and railway routes as a result of the upgrade of transportation infrastructures make transport combinations more flexible. The standardization of administrative and judicial processes for the transportation of products are also making progress.

Planning for intermodal logistics has been refined as well. Due to a lack of drivers and capacity difficulties, the demand for this form of transportation is rising faster than the number of professionals who can meet it. Rising fuel costs ultimately lighten this means of transportation, at least for long-haul trips.

Newer, information and technology-based logistics processes also allow for cheaper rates, more accurate time estimations, and less expensive handling.

Intermodal transportation moves over 25 million containers annually, according to Freightquote.com. Based on a Technavio market research analysis, intermodal freight transportation will increase by $49.8 billion between 2020 and 2024, with a compound annual growth rate (CAGR) of almost 7%.

Who Uses Intermodal Transport?

Intermodal transportation is very accessible because no rails are needed at the origin or destination of your product. You benefit from employing trains to handle the load while trucks take the beginning and final destination delivery.

Before using intermodal freight transport, the main questions are how far you’re shipping and where you’re shipping.

Intermodal transport isn’t limited to a certain industry but is all about the shipper’s needs.

Usually, intermodal shipments work best if you’re:

  • Total tonnage is under 25 tons
  • Over 620 miles to the destination
  • Quantity of deliveries are high and on a frequent basis

The economics need to work in your favor for the shipment to be efficient. So, if you’re a large retail and consumer products company, looking at your destination and measuring its proximity to a rail hub or terminal would be an essential step in the intermodal logistics process for you.

How Does Intermodal Transport Work?

A graphic showing how intermodal transport works.

Shippers and carriers can assess their packing requirements and calculate shipping costs by first using a straightforward process via freight class codes. The cost of shipping freight increases as the code rises. This is partly because of the liability that some freight poses. It costs more to ship something that is fragile and has the potential to be harmed.

Once intermodal logistics are established, the standard import shipping procedure is the transfer of storage containers from a container port to a rail yard for domestic transportation after it has arrived from abroad. The shipment is transferred to the rail and moved to the following destination, which may be hundreds of miles inland, likely on a container chassis – a special trailer used to transport ocean containers over the road. The cargo is loaded onto a truck and driven to the final location indicated in the order after it has reached its destination.

What is the Difference Between Rail and Intermodal?

Intermodal transport is more environmentally friendly, but transportation via rail is typically more effective. Rail can transport one ton of cargo about 450-500 miles on one gallon of gasoline, according to the Bureau of Transportation Statistics. This helps lessen greenhouse gases and carbon pollutants produced as commodities are transported from coast to coast. Intermodal freight transportation relies on infrastructure using various transfer methods. Rail has limitations as well, needing to be a certain proximity to final destinations, often dictating the order’s arrival time.

What is the Difference Between Multimodal Transport and Intermodal Transport?

There is a frequent mix-up when using the phrases intermodal transport and multimodal transport.

The difference is that a single document (the FIATA Bill of Landing, or FBL), which covers the entire operation, is issued for multimodal transport, which carries several types of cargo, including pallets and containers.

Containers, semi-trailers, and other movable boxes that transfer from one method of transportation to another without being opened make up intermodal transportation. Each form of transportation (truck, boat, etc.) used in the logistics operation is also given a transport document.

One is not always superior to the other because everything relies on the requirements of each business and the characteristics of its products. The main thing is maintaining the integrity of the cargo in transit.

What Are the Types of Intermodal Transportation?

Trailer-On-Flatcar (TOF) and Container-On-Flatcar (COFC) are the two types of intermodal transportation. Instead of using an intermodal container, the over-the-road (OTR) trailer is loaded directly into the wellcar – railroad car for intermodal containers. Since four containers instead of two trailers can be put onto a wellcar, it’s more economical.

Intermodal transport is a dependable, effective method for moving cargo. However, due to various misconceptions and a lack of knowledge about how to successfully integrate intermodal into a logistics and supply chain.

What Are the Benefits of Intermodal Transport?

The benefits of intermodal transport.

Numerous benefits of this process include quicker delivery and enhanced product safety. However, there are also three top reasons why we think shippers can benefit from intermodal transport:

Cost Efficiency

Intermodal shipments are an option for exporters who do not need a complete container because it enables the combination of full-load and groupage protocols.

Flexible Logistical Processes

Utilizing loading units speeds up loading and unloading processes, requires less labor, and minimizes the amount of time spent handling items.

Risk Reduction

Since the items are not divided, it is quite simple to locate them even when switching between vehicles, making incidents like breakage, loss, or theft extremely uncommon during intermodal freight transportation.

The punctuality, viability of rail transportation, and capacity to move large quantities are all additional benefits that show intermodal logistics makes sense for many fleets. Shipping can be easier, and this method can help you hold your delivery service to a high standard for clients.

Is Intermodal Transportation Right for Me?

As a shipper, we know you’re looking for ways to solve the modern trucking problems. So, reducing shipment costs and transporting freight more efficiently are your top priorities.

Intermodal transportation can ultimately provide businesses with a variety of significant benefits. It won’t be the ideal option for all companies; depending on your freight type, you should select a strategy that’s best for you. Mileage, load capacity, and numerous other elements should drive your decision before you get into intermodal transport.

The Role Hale Trailer Plays in Intermodal Transport

Before you make your selections, check in with our experts at Hale Trailer. We have the experience to help you strategize your delivery when choosing the right vehicle and equipment. Our selection of trailers are ready for any journey whether you’d like to purchase or rent. Browse our line-up online or at one of trailer rental locations if you want to learn more about how we can work for you.

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