What Is Intermodal Transportation?

Intermodal transportation became a revolutionary decision for logistics. Integrating various modes of transport, such as trucks, trains, ships, and plains, may optimize the smooth and efficient movement of goods. The main benefit of this method is the combination of advantages of several transports.

Expansion of global trade and complexion of supply chains make intermodal shipping benefits an essential element for enhanced delivery strategy. This article explores what intermodal transportation is, its pros, cons and types, and their work principles.

What is Intermodal Transportation?

Intermodal transportation is a delivery type that involves multiple modes of transport. This method evolves the use of standardized containers for effortless transfer between trucks, trains, ships, and plains. The combination of several transport modes advantages allows efficient and cost-effective transportation of goods from the place of origin to the final destination.

Intermodal shipping method dates back to the beginning of the previous century. Still, standardized containers and special handling equipment were developed in the 1950s-1960s. This innovation revolutionized freight transportation, making intermodal shipping a cornerstone of the modern logistic sector.

Nowadays, transportation relies on advanced technologies as it requires the management of complex logistics. GPS tracking, real-time data analytics and monitoring, and logistics software help monitor container movement, optimize routes, and ensure on-time deliveries. In addition, such networks are extensive and interconnected. Major ports and rail terminals are critical hubs for these networks. The efficiency of such shipping depends on seamless coordination and robust infrastructure.

Pros and Cons of Intermodal Freight

Intermodal transportation may offer numerous advantages for all parties involved in the shipping process. However, they also present a range of challenges. Understanding the benefits and difficulties of intermodal freight is crucial to find a best logistic strategy.

Pros:

• Cost efficiency. The combination of several transports may reduce overall shipping costs. Specifically, rail and sea transport modes can be more cost-efficient for long-distance deliveries compared to trucking alone.
• Higher security. Standardized and sealed containers provide the security of goods during the shipping process. Such containers are sealed and can be opened only at the final destination.
• Flexibility. Intermodal transportation offers greater flexibility in scheduling and route planning. Shippers can choose the most efficient routes and transport types to reduce delivery costs and time.
• Scalability. The combination of transport types allows easy scaling of operations to handle various shipment sizes. Thus, you can use the best option for small and large goods volumes.
• Custom efficiency. Standardized containers simplify customs, as the goods remain sealed and secure. It can accelerate custom procedures and paperwork time.

Cons:

• Coordination complexity. Intermodal transportation management requires thorough planning and coordination between shippers. The complexity can lead to delays and logistics challenges.
• Longer transit time. The cooperation of several carriers during intermodal freight may lead to longer delivery times. In addition, transit times can be extended amid delays in transfers between modes.
• Infrastructure dependency. The efficiency of this transportation type depends on the availability and quality of infrastructure. Outdated rail lines, ports, and terminals can affect goods flow.
• Higher initial costs. Intermodal shipping requires initial investment. It’s needed for purchase of containers, equipment, and technologies. It can be challenging for smaller companies and businesses with limited funds.
• Regulatory issues. Each transport type that can be used in intermodal shipping is subject to specific requirements. It can complicate the process and may increase shipping costs. In addition, handling these laws and rules requires expertise and can be time-consuming.

Types of Intermodal Transportation

Intermodal shipping foresees various combinations of transports to optimize the delivery process. Each method meets specific logistics needs and requirements. The main aim is to ensure flexibility, efficiency, and cost reduction.

Rail-road transportation

The combination of truck and trains is efficient for long-distance shipping. Usually, this transportation type involves container transferring by truck to a rail yard for the long-haul journey. Then, the cargo is delivered by truck from the destination rail year to the consignee. The advantages of railroad transportation include reduced cost and fuel consumption.

Sea-road transportation

This type combines transferring by a ship with the use of trucks that may facilitate international trade. Containers are loaded onto a truck, transported to a port for overseas shipping, and then transferred by a truck to the final destination. Such transportation is ideal for large goods volumes over long distances.

Sea-Rail transportation

Sea-rail intermodal transport is used for international shipments. Still, it requires well-developed rail networks. Containers are transported by ship to a port and then transferred onto a train. Final delivery may include truck shipping as well. This type provides the cost-effectiveness and environmental benefits for long-haul international shipments.

Air-Road transportation

This method is usually used for high-value or time-sensitive goods, as it combines speed of air transport and flexibility of road transferring types. Products are loaded into air containers, flown to the destination airport. Then, the cargo is delivered by a truck to a consignee. It provides the fastest delivery time. Still, air-road transportation is more expensive compared to other options.

Sea-Air transportation

This intermodal transport balances speed and cost. Goods are shipped by sea to a port and then flown to the final destination with possible truck shipping if necessary. This method provides faster delivery compared to sea transportation and lower costs compared to air transport.

Road-Waterway transportation

This type is useful for regions with developed river or canal networks. Containers are transported by a truck to a port for further shipping along waterways. Road-waterway transportation increases the cost-effectiveness of the delivery.

Each type of intermodal freight has its own advantages and meets specific logistics needs and requirements. The choice of the most effective and suitable option depends on budget, necessary delivery speed, and infrastructure availability. Understanding the specifics of the intermodal transportation ways will help you enhance the supply chain operations, improve delivery efficiency, and reduce shipping costs.

How Does Intermodal Transportation Work?

Intermodal freight is a complex delivery process that includes several stages. It requires thorough coordination between different carriers.

1. Container loading. The shipment process starts with choosing a container that meets ISO specifications to ensure the possibility to use it across various transports. Then cargo is packed into the containers and sealed to secure the contents.
2. Truck transportation. The loaded container is transferred by a truck to the intermodal terminal. Such technologies as GPS tracking help monitor container movement to ensure delivery on-time.
3. Transportation to rail or ship. For rail delivery, the cargo is transferred from a truck to a railcar and then is shipped over long distances. If goods are shipped overseas, they’re transported to a port and loaded onto a cargo ship.
4. Truck transportation to destination. Upon arrival at a terminal, containers are loaded onto a truck for the final delivery. A truck delivers the cargo to the consignee’s facility.

Intermodal shipping requires careful coordination and the implementation of advanced technologies for cargo tracking. In particular, management processes are vital for coordination, smooth cargo flow, and on-time delivery. Technological solutions such as GPS tracking and real-time data analytics are essential for monitoring goods during the delivery, route optimization, and schedules setting.

In addition, intermodal transportation requires proper documentation and compliance with regulatory requirements.

Who Should Be Using Intermodal Transportation?

Intermodal shipping can be a profitable solution for a wide range of sectors and companies as it provides options for the supply chain optimization and cost reduction:

• Manufacturers who deal with large quantities of raw materials of finished goods can benefit from a combination of several transport modes. For them important long-distance transportation with reduced shipping costs and improved reliability. The sectors such as automotive, electronics, and consumer goods often use intermodal transportation to optimize deliveries.
• Retailers and e-commerce companies handle various types of goods in large quantities. Several transport types help to optimize inventory management, reduce costs, and ensure delivery on-time, by combining their advantages.
• Agricultural and food producers use intermodal transportation for long-distance shipping of perishable goods. In this case, the addition of airplane speed allows faster delivery that maintains the quality and safety of food products. In addition, shippers often use refrigerated containers (reefers) to keep the goods fresh during transit.
• Chemical and pharmaceutical companies often need secure shipping amid sensitive and sometimes hazardous materials. Intermodal shipping provides necessary security and tracking opportunities, and the use of sealed containers also secures high-risk shipments from leaks or thefts.
• In the energy, oil and gas, and mining sectors, producers need to transfer heavy equipment, raw materials, and finished products. The ability to combine transport types allows navigating challenging routes and reaching remote locations. In addition, intermodal shipment minimizes costs and ensures timely delivery.
• International shippers often use intermodal freight transportation amid its speed and cross-border logistics. In addition, the use of standardized containers ensures shorter handling time, easier cargo transferring between transport modes, and simplified custom regulations.
• Third-party logistics providers (3PLs) provide supply chain management services to other companies. Such offers as intermodal transportation can enhance their service portfolio. With several transportation modes, 3PLs can provide more flexible and cost-effective logistics solutions.

What Can You Ship Using Intermodal?

The flexibility from using different transport types allows the efficient cargo movement due to combined advantages of several transports.

• Consumer goods. Intermodal freight transportation is suitable for shipping of consumer items, such as furniture, clothing, and electronics. These goods are often shipped in large quantities and over long distances. For that, intermodal transportation can be a cost-effective solution.
• Perishable and food products. The combination of several transports ensures streamlined delivery, the quality and safety of perishable goods. This group may include fruits, vegetables, meat, or seafood.
• Raw materials. The products as metals, minerals, and agricultural commodities are often shipped from remote locations. Intermodal freight transportation is an efficient practice for long-distance delivery.
• Chemicals and hazardous materials. Different transport modes provide secure and fast delivery for chemicals and similar materials. In addition, specialized containers and control protocols prevent the risk of leakage. Intermodal transportation is a suitable logistic strategy for the pharmaceutical, petrochemical, and agriculture industries.
• Manufactured goods. Machinery, automated parts, and industrial equipment require carefull and secure transportation. Switching transport modes without directly handling the cargo reduces the risk of damage.
• Bulk commodities. Intermodal services are also suitable for grains, coal, petroleum, and other bulk items. These are loaded into specialized containers to ensure efficient, large-scale movement over long distances.
• High-value items. The section includes electronics, luxury goods, or pharmaceuticals, etc. These goods need enhanced security that can be provided by the use of sealed containers and GPS tracking systems. Such measures reduce the risk of theft and damage.
• E-commerce shipments. The rapid growth of the e-commerce market increased demand for fast and flexible delivery options. Intermodal transportation offers a reliable way to handle oversized packages.
• Automobiles and vehicle parts are often transferred with the use of intermodal methods amid their size and weight.
• Project cargo refers to large, complex and high-value items, such as equipment or machinery. Their transportation is important for industrial projects, such as construction or energy installations. Intermodal shipping provides a possibility of several transport combinations to navigate different terrains and infrastructure challenges, as projects may be located in remote areas.

Example of Intermodal Transportation

To have a full understanding of intermodal freight transportation methods in practice, have a look at an example below. It highlights the steps of different delivery coordination that helps ensure efficient and cost-effective delivery.

The example is a shipment from a Chinese manufacturer to a retail distribution center in the US:

1. Product loading. The producer loads the goods into standardized containers. Each container is sealed and labeled for further monitoring during the delivery.
2. Transportation to a port by truck. A truck picks up the loaded containers from the facility for the short-haul shipping, or drayage. Containers are tracked in real-time.
3. Maritime shipping to the US. Goods are loaded onto a cargo ship for seaway shipping. During this stage, cargo is also monitored for location and status.
4. Reaching the destination port. After arrival at the US port, containers are offloaded for custom inspection. Custom officers review shipment documentation and inspect containers.
5. Truck transportation to the local distribution center. Containers are loaded onto trucks for the final stage of delivery processes.
6. Reaching the final destination. Containers arrive at the distribution center. Goods are unloaded, sorted, and prepared for distribution.

The example demonstrates several benefits of intermodal transportation. In particular, it ensures cost efficiency through sea transport for the long-haul segment, cargo security amid standardized containers, flexibility as the shipping switches seamlessly between transportation modes and scalability that handles varying shipment sizes.

Conclusion

Intermodal transportation is a cornerstone of modern logistics activities. It provides such benefits as effective and secure shipping over long distances. The pros combination of various transport types helps reduce costs and enhance operational efficiency. Intermodal shipping solutions also provide supply chain optimization for a range of businesses, from manufacturers to 3PLs.

The knowledge of the processes, benefits, and challenges of different intermodal transportation types is essential for companies to maintain competitiveness. LAX Freight can handle difficult intermodal processes to help you implement these solutions in your supply chain. Contact us to plan future cooperation and delivery strategies. We provide expert logistics solutions to help streamline delivery with lower costs.