Intermodal Freight Transport - Benefits And Risks

Moving commodities from one form of transportation to another is called intermodal freight transport.

An intermodal transportation system connects several modes of transportation such that cargo can be transported from one to the other with the least hassle and wait time.

Businesses employ intermodal freight because it makes it cheaper and lowers carbon dioxide emissions.

The frequency of trips necessary to transport commodities can be decreased using various transportation methods.

For example, one shipment might travel from New York City to Los Angeles via train, truck, and ship.

This article explores the definition and benefits of intermodal freight transport, its risks and challenges, and how companies can leverage this by investing in new intermodal freight solutions.

Read on to learn more about intermodal freight services and solutions.

What Is Intermodal Freight Transport?

As we have seen, intermodal freight transport is the movement of goods from one mode of transport to another.

In this respect, it differs from multimodal transport, which is the movement of goods from one location to another, using more than one mode of transportation.

Often multimodal transport uses a change of mode at one or more ports or border crossings.

The main difference between intermodal and multimodal freight transport is that with intermodal freight transport, goods are loaded in containers and then transferred from one mode of transport to another.

With multimodal freight transport, on the other hand, the containers or trailers are loaded with goods and then moved from one location to another.

The International Organization for Standardization (ISO) governs container design and construction. They set out guidelines for dimensions, weight limits, safety requirements, and other specifications.

Many of these rules apply to both sea and land shipments.

Understanding Intermodal Freight

Containerization allows goods to move cross-country quickly and cheaply. Intermodal freight refers to the movement of goods via different types of vehicles.

For example, containerized cargo moves from one mode of transport to another while still inside a single shipping unit.

This type of shipment is known as intermodal because it uses several different forms of transportation, such as railroads, trucks, barges, and ships.

Intermodal shipments are often used for large volumes of products like automobiles, electronics, and furniture.

They are also common for bulk commodities like grains, coal, and oil. About 80% of all goods shipped internationally use some form of intermodal transportation.

Growth in Intermodal Freight

Technavio forecasts that about 25 million containers will be moved through intermodal shipping each year by 2025.

According to one market research firm, this represents a compound annual growth rate of 7% over the next four years.

The demand for intermodal freight is attributed to rising population levels, increasing urbanization rates, and growing global trade volumes.

In addition, technological advancements in container handling equipment and increased port capacity are also contributing to the growth of intermodal.

Nevertheless, it is anticipated that multimodal transportation will impede the expansion of intermodal freight transportation.

Benefits of Using Intermodal Freight Transport

Businesses use intermodal freight because it saves money and improves safety. Intermodal freight is cheaper than trucking or air travel.

In addition, intermodal freight moves more quickly than trucks. Companies like FedEx and UPS offer intermodal shipping options.

Intermodal freight involves moving cargo from one mode of transportation to another.

For example, you could ship a container from a port to a train station and then onto a truck.

This process is called intermodal freight. When compared to trucking or air freight, intermodal freight offers many advantages.

The most significant advantage of intermodal freight is cost savings. Trucking companies charge per mile, while airlines charge based on weight.

But intermodal freight costs are usually fixed rates. You must pay a predetermined fee for moving items between distinct forms of transportation.

Another benefit of intermodal freight over trucking is safety. Trucks are prone to accidents, especially during inclement weather.

In addition, drivers often work long hours without breaks. These elements raise the possibility of injury and fatality among truck drivers.

By contrast, intermodal freight is safer. Transportation workers are protected by federal law and regulations. They must follow strict guidelines regarding rest periods and working conditions.

Intermodal freight also moves faster than trucking or air freight. A single shipment can move from coast to coast within 24 hours.

With trucking, shipments take days or weeks to reach their destination. And air freight takes even longer.

Intermodal freight requires less space than trucking or air freight. Air freight needs room to store pallets of products, whereas intermodal freight uses containers.

Containers are smaller and lighter than pallets. Because of this, intermodal freight requires less storage space.

Intermodal freight also has environmental benefits. Transporting products via rail reduces greenhouse gas emissions. Shipping products by sea decreases carbon dioxide emissions.

How to Leverage the Benefits of Intermodal Freight Transport

As we have seen, intermodal freight transport offers many benefits, but it is crucial to managing the risks associated with it.

To leverage the benefits of intermodal freight transport, companies need to invest in new technology to track cargo and monitor the loading, unloading, and transfer processes.

This will enable them to manage better the risks associated with intermodal freight transport, such as theft or damage, and lead to more effective and efficient operations.

This can, in turn, help to increase customer satisfaction, as companies will be able to provide more accurate tracking and delivery service.

Disadvantages

Intermodal freight transportation requires heavier equipment and more significant investments in infrastructure than rail and road modes.

This increases operating costs and makes it harder to compete against trucking.

In addition, major railroads and roads require significant land acquisitions and construction. And containerization can reduce the amount of space needed for shipping.

While intermodal freight transport offers many benefits, it also poses some challenges for companies.

For example, there are risks associated with how goods are loaded, unloaded, and transferred between modes of transport.

Another challenge is that for intermodal freight transport to work effectively, there needs to be an efficient and well-managed intermodal freight network, which is not always the case.

Finally, investment is needed in infrastructure, such as intermodal terminals, and new technology to manage the process.

How to Mitigate the Risks Associated with Intermodal Freight Transport

We've explored the challenges of intermodal freight transport and how companies can leverage the benefits of intermodal freight transport.

However, mitigating the risks associated with intermodal freight transport is also essential.

To ensure that goods are loaded and unloaded safely, companies can use technologies such as sensors and cameras.

They can also use blockchain technology to track and trace shipments, giving them more control over the process.

Finally, investing in a well-managed and efficient intermodal freight network can minimize the risks associated with the transfer of goods between modes of transport.

The Intermodal Shipping Process

A typical import shipping process involves multiple steps and costs money.

Containerization is one of those steps.

Dry bulk, liquid, and general cargo containers are used in the shipping industry.

Key Performance Indicators for Intermodal Transport

Since 2013, the U.S. Congress has instructed the Surface Transportation Board (STB) to gather performance statistics from all Class I railways on critical criteria such as average travel speed and container dwell time.

Such analytics could also assist shippers and their providers bargain better pricing with Class I railroads, in addition to facilitating the creation of numerous transportation emergency plans.

Correspondingly, for drayage, tractor turnover times at intermodal rail terminal yards can be utilized to determine the effectiveness of specific service suppliers.

Both represent and influence container stay times at intermodal terminals and ports.

TradeLens has implemented rail operators, primarily in North America, and offers safe and trustworthy transparency to unprecedented volumes of event data.

The TradeLens data sourced directly from rail providers may provide new levels of precision and enable precise operational planning for TradeLens users, hence enabling options such as:

• Acquisition of data sources in close to real-time for enterprises utilizing predictive analytics
• Fewer unforeseen expenditures
• Decreased safety stock requirements with improved visibility of differences in forecasted versus actual delivery timeframes

Intermodal transportation is a broad category that could encompass these and many more forms of transportation.

However, rail and trucking are the modes most usually associated with the term in the industry.

Because of this and other factors, we are evaluating the benefits of intermodal transportation for a specific firm depending on the data the business gathered.

Conclusion

This article explores the definition and benefits of intermodal freight transport, its risks and challenges, and how companies can leverage this by investing in new intermodal freight solutions.

Intermodal freight transport is one of the most efficient means of transporting goods, and companies can leverage this by investing in new intermodal freight solutions.

If you want to have some more concerns or some support related to this field, please do not hesitate to contact us because our customer service is always available 24/7.