Intermodal shipping—a method that utilizes two or more vehicle types—can effectively manage expenses for companies that ship goods over long distances. Efficient and flexible, this method can help companies stay competitive and adaptable over the long term. Before companies integrate multiple transportation modes, they must consider the implications and meaning of intermodal shipping in logistics. Understanding the potential impact on administration, coordination, and delivery makes creating an informed shipping strategy easier.
What Is Intermodal Shipping?
Intermodal transportation involves moving freight from one place to another using multiple modes of transportation. For example, a shipping container might travel across the country on a train before being loaded onto a truck for in-state delivery. Businesses typically use intermodal shipping to reduce costs while meeting delivery deadlines.
In trucking, intermodal often means using trucks to carry shipping containers to other modes of transportation. Depending on the route, this might include planes, trains, or ships. Leveraging intermodal trucking means companies can choose the most affordable combination of transportation types for the given time frame.
How Does Intermodal Transportation Work?
Intermodal transportation harnesses the advantages of different vehicles. A company might load a shipping container, deliver it to the port on a truck, and send it overseas on a cargo ship — a generally more affordable option than air freight. When the container arrives at its destination port, it might be transferred to a fuel-efficient train for the final leg of the journey.
Successful intermodal shipments require communication and coordination. Most companies use specialized technology platforms to optimize routes, track containers, and ensure all involved parties are on the same page.
This type of shipping relies on intermodal carriers and containers. An intermodal carrier is well-versed in transferring goods to and from other transportation modes. An intermodal container is a standardized type of metal box that's compatible with multiple vehicle types. Goods can remain in the container and don't need to be loaded and unloaded when the shipment changes to a new mode of transportation.
Intermodal containers are categorized by size and type. Common types include:
- Dry: Dry containers transport nonperishable goods.
- Flat-rack: Designed with a sturdy platform and open sides, these often hold heavy machinery, vehicles, and other bulky items.
- Temperature-controlled: These containers maintain a consistent interior temperature with refrigeration, heating, or insulation. They're used for perishable or temperature-sensitive items, such as foods and medications.
- Bulk containers: Bulk models, which are often top-loading, hold unpackaged bulk goods, such as coal, sand, and wood.
- Tank: Intermodal tanks can be used to carry liquids and gases.
Because intermodal shipments use multiple transportation modes, they require more lead time before delivery. Logistics managers must also account for the possibility of delays due to geopolitical and extreme weather events. As a result, this method is most effective for orders that aren't time-sensitive.
Who Uses Intermodal Shipping?
Intermodal shipping is used across a range of industries, including agriculture, retail, and manufacturing. It's most common for long-distance shipments; companies might use intermodal transportation for imports, exports, and cross-country freight deliveries. For shorter-range trips, a single mode of transportation is usually more efficient.
Companies often reserve intermodal shipping for goods that can be containerized: food products, raw materials, components, consumer goods, chemicals, and even livestock. It's not a suitable choice for freight that doesn't fit into standard containers, such as large pieces of agricultural equipment.
What Are the Benefits of Intermodal Shipping?
While intermodal shipping is more complex than other methods, it has significant benefits:
- Reduced costs: Optimizing routes and using lower-cost modes, such as sea and rail for longer distances, helps reduce shipping costs.
- Improved performance: With intermodal shipments, companies can select the intermodal carriers with the capacity and ability to transport goods efficiently, improving on-time deliveries. Goods stay in the same container throughout the journey, eliminating time-consuming loading and unloading.
- Higher sustainability: Incorporating fuel-efficient transportation modes, such as trains and cargo ships, reduces the environmental impact of each shipment.
- Increased flexibility: Businesses that can use numerous modes of transportation may be able to adapt more easily to changes in customer demand, evolving trade regulations, and geopolitical concerns. For companies with global supply chains, flexibility can also help minimize exposure to tariffs.
Types of Intermodal Shipping
After goods are loaded into intermodal containers, they often travel by one of these methods:
Road-to-Rail
Packed containers are lifted onto large trucks with a forklift or a crane and driven to a rail station. Handlers use heavy-duty cranes to lift the container off the truck and load it onto a train car. Trains with flat cars hold single-stacked containers. Well cars, which feature a depressed center area, can carry double-stacked containers.
Rail-to-Ship
A train carries shipping containers to a port, where the containers are offloaded with cranes or forklifts. Depending on the design of the port, containers may need to be transported by truck to the shipyard. There, they're lifted high onto the ship with enormous gantry cranes.
Cargo ships are designed to hold stacks of containers that rise high above the water. In some cases, the stacks may be 12 containers above the ship's deck. Each is connected with corner twist-locks to prevent it from moving or falling off the ship. They're also lashed to solid structures for extra security.
Air-to-Rail
Specialized air cargo containers are transported to the airport — likely, by truck — and loaded on an airplane. When they arrive at the destination airport, they're loaded onto a train. In most cases, a truck carries them to the train terminal.
Ship-to-Rail
After shipping containers make the long journey across the ocean and arrive at their destination, large cranes lift them off the ship and into the port. They're processed by customs and transported by truck to a train. This distance varies based on the location.
Intermodal vs. Multimodal
Intermodal shipping and multimodal shipping use multiple modes of transportation. An intermodal shipment uses a different carrier for each leg of the journey; each segment requires a separate agreement. By contrast, a multimodal shipment is handled by a single carrier.
Multimodal shipments are often a more streamlined option. One company is responsible for the goods and the different modes of transportation, simplifying paperwork, communication, and coordination.
Intermodal shipments require more coordination but allow more flexibility and potential for cost reduction. The company can negotiate terms with each carrier, making it easier to reduce prices and optimize routes. For businesses trying to build a more agile supply chain, intermodal is often the preferred option.
Intermodal shipping can be an ideal solution for companies looking to control costs while maintaining flexibility. However, it's also more complex, so it's critical to understand the nuances and the meaning of intermodal in logistics before making the switch.
If you want to know more about intermodal shipping, the Intermodal Association of North America (IANA) offers educational resources, tools, and insights to help you implement efficient intermodal shipping into your supply chain.
