Are you seeking to ship freight over long distances while reducing transportation costs? If so, intermodal freight could be the solution you're looking for.
Integrating intermodal shipping into your supply chain can save costs, enhance security, improve safety, and add flexibility to your shipments.
But how exactly does it operate? Let’s find out.
What does Intermodal Freight Mean?
Intermodal freight transport is the process of moving cargo using a combination of modes of transport, such as trains, trucks, ships, and aircraft.
As the freight moves from one mode to another, each leg of the shipment is managed by a distinct transport carrier. Consequently, the shipper must engage with multiple contracts, one for each carrier responsible for their respective part of the shipment.
This is made possible with the use of intermodal freight containers. These standardised shipping containers follow International Organization for Standardization (ISO) dimension guidelines.
ISO containers are typically available in two lengths, 20 feet or 40 feet, with varying breadth and heights. Among the most common sizes are:
1 TEU: 20ft x 8ft x 8ft6”
2 TEU: 40ft x 8ft x 8ft6”
High Cube: 20ft x 8ft x 9ft6”
Intermodal freight containers ensure that the freight stays in the same container as it moves between different modes of transportation. There is no need to transfer cargo to a new container of a different size, so it eliminates the hassle of unpacking and repacking.
Here’s an example of intermodal freight shipping—
Imagine you have a large shipment to move between two landlocked sites. To make this happen, you'd first arrange for a trucking company to transport your cargo by road to a rail terminal. From there, it's loaded onto a train for transport to a nearby shipping port.
At the port, your freight is loaded onto a cargo ship for the haul overseas to another port. Upon arrival, it's transferred to another rail carrier for further transportation inland.
Your shipment is then transported by truck from the rail yard to its final destination to complete the haul.
For an eCommerce retailer, shipping a package through intermodal freight begins with preparing the package at the warehouse.
After scheduling a truck, the package is transported to a nearby intermodal freight terminal. Here, the package is loaded onto a train, facilitating its transit across the country to a rail terminal closer to the recipient's area.
Upon arrival, the package is seamlessly transferred from the train onto a delivery truck, which completes the final leg of the haul by delivering the package to the final distribution or fulfilment centre.
Intermodal Freight Transport Vs. Multimodal Freight Transport
Because different transportation methods are involved, shippers and freight forwarders often mix up intermodal and multimodal transportation. However, it's important to distinguish intermodal freight transportation from multimodal freight transportation.
The key distinctions between these two are—
Multimodal transportation combines two or more modes of transportation to move cargo from origin to destination. However, unlike intermodal freight, it uses a single bill of lading issued by the contracted carrier.
The carrier takes full responsibility for the entire journey, covering all modes and legs of transport. This means that the same company manages the shipment's transportation through all modes and legs of the journey.
The multimodal approach can operate in two ways:
One is by partnering with a shipping and logistics company with all the transportation modes you need.
Two, by establishing a single contract with an agent, often known as intermodal freight forwarders or logistics solution providers. The agent acts on behalf of the shipper, handling negotiations and making things easier by dealing with just one contract instead of many. They may also take care of loading, unloading, and dealing with shipping delays, offering a complete solution for the shipper.
Unlike intermodal freight shipping, multimodal transportation may not require standardised containers. Instead, goods can be loaded directly onto various modes of transport, employing suitable packaging and handling methods.
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Intermodal Freight Transportation |
Multimodal Freight Transportation |
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Uses multiple modes of transportation with standardised containers, without needing to handle the cargo during mode changes. |
Uses multiple modes of transportation within a single shipment, with each mode responsible for a specific stage of the journey. |
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Done in standardised containers, to ensure seamless transitions between modes without the need for cargo unpacking and repacking. |
Does not always require standardised containers; goods may be directly loaded onto different modes using appropriate packaging and handling methods. |
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A separate bill of lading may be issued for each leg of the journey. |
A single bill of lading spans the entire transport journey. |
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Each transport mode is responsible for a specific leg of the journey. |
Each transport mode is responsible for a distinct stage or phase of the shipping process. |
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Typically involves separate contracts with individual carriers for each mode. |
Can be managed under one contract with an agent, simplifying the process for the shipper. |
How Does Intermodal Freight Transport Work?
Intermodal freight shipping operates through a coordinated sequence of steps to ensure the smooth transportation of goods. Here is a general outline of how it usually operates:
1. Planning and Booking
Shippers determine the most efficient route and transportation modes for the cargo, considering factors like cost and transit time. Services are then booked with suitable carriers.
2. Pickup at Origin
Cargo is collected from the shipper's location or a designated distribution centre. It is then transported to the initial departure point, often a rail or intermodal terminal. Goods are sorted and packaged in standardised containers suitable for intermodal freight. This may also include documentation.
3. Rail or Intermodal Transport
Intermodal freight containers are loaded onto rail cars or intermodal platforms at the origin terminal. Trains commonly handle this main portion of the transport, and they are cost-effective for long-haul journeys. For international intermodal transportation, cargo may be loaded onto ships or aircraft.
4. Transloading
Containers are transferred to a different mode of transportation, such as trucks or ships, at an interchange point or designated intermodal freight terminal along the route. This process is known as transloading. It involves lifting containers from railcars or intermodal platforms.
5. Road or Sea Transport
Containers may be loaded onto trucks for road transport or ships for overseas shipping, depending on the destination.
6. Delivery
At the destination terminal, containers are unloaded and transferred to the designated area. The cargo is then delivered to the recipient or stored in a warehouse for distribution or further transport.
7. Distribution
If required, the cargo can be sent further using local or regional transportation networks to reach its final destination.
8. Documentation and Compliance
Intermodal freight carriers handle all required paperwork, including customs clearance for international shipments. They also ensure adherence to regulations for each transportation method and destination.
Planning & Booking
- Choose route & transport modes
- Book with carriers
Pickup
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Collect cargo
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Transport to the terminal
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Secure in containers
Rail/Intermodal Transport
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Load onto rail/intermodal platforms
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Trains for long hauls
Transloading
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Shift containers to trucks/ships
Road/Sea Transport
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Use trucks or ships based on destination
Delivery
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Unload at the destination
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Deliver or store for further transport
Distribution
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Cargo can be sent locally for final delivery
Documentation and Compliance
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Handle paperwork, including customs clearance for international shipments
5 Types of Cargo You Can Transport Using Intermodal Freight Containers
Intermodal freight transport and logistics is a versatile method suitable for shipping a wide range of products, including but not limited to:
1. Oversized Cargo
Intermodal freight is ideally suited for transporting large and bulky items like cars, trucks, windmill blades, machinery used in construction or agriculture, etc.
2. Consumer Goods
Consumer goods are among the most common types of freight transported using intermodal freight containers. It’s a cost-effective and efficient method for moving goods like, electronics, clothing, and other consumer products between manufacturers, distribution centres, and retailers.
3. Perishable Goods
Other types of cargo that businesses can transport with the help of intermodal freight transportation companies are fresh goods, perishable produce, and agricultural products. Goods like food and beverages must be transported in temperature-controlled intermodal freight containers.
4. Hazardous Chemicals and Liquids
Intermodal freight transport is highly suitable for liquid chemicals, thanks to its capability to accommodate large ISO tanks. These specialised containers guarantee the safe and efficient transportation of sensitive materials.
5. Dry Bulk Cargo
Intermodal freight shipping can transport raw items such as sand, wood logs, gravel, and iron ore, known as dry bulk cargo. This method offers a cost-effective solution for freight carriers needing to move large quantities of these items. Enclosed hopper cars and bulk containers ensure safe transport, protected from the weather.
Pros and Cons of Intermodal Shipping
Intermodal freight transport has several advantages and disadvantages—
Pros of International Freight
1. Cost-efficiency
One of the most significant advantages of intermodal freight transportation is that it saves money.
It enables more efficient cargo transportation, reducing delivery time and saving costs. This is because of the added agility provided by multiple transportation options.
Standardised containers also reduce loading and unloading times. Goods remain in their containers until reaching the final destination, minimising handling costs. Additionally, intermodal freight reduces the time spent managing customs processes.
2. Security
Intermodal freight shipping offers enhanced reliability and security for your cargo.
It eliminates direct freight handling, significantly reducing the risk of shipping damages and losses. Plus, locations such as terminals, ports, and ramps are typically equipped with heightened security measures, further ensuring the safety of your shipments throughout the transportation process.
3. Consistent Capacity
Intermodal freight services accelerate overall speed by slashing shipping and handling times. This directly amplifies transportation capacity. Plus, you can utilise the most efficient transportation method at every journey stage. This, in turn, minimises container capacity wastage and mitigates potential bottlenecks.
4. Flexibility
Intermodal freight provides flexibility by eliminating the need for a single carrier or contract. This ensures that you're not constrained to one particular route. Instead, you can mix and match transportation modes and arrangements to achieve the quickest delivery of your goods.
Additionally, intermodal freight allows carriers to select the most dependable or swiftest route for each shipment, enabling them to effectively fulfil customer demands and address unforeseen challenges.
5. Sustainability
Global transport sector CO2 emissions increased by 250 million tonnes in 2022, reaching nearly eight gigatonnes (Gt), a 3% rise from 2021. To achieve Net Zero Emissions by 2030, transport emissions must decrease by about 25% to approximately 6 Gt. This requires energy-efficient measures and less carbon-intensive transport modes.
Plus, with eCommerce logistics projected to emit 25 million metric tons of CO2 by 2030, eCommerce retailers must balance the need for greener supply chains with meeting consumer demands for fast and affordable delivery.
Intermodal transportation offers that value. It uses trains and ships, which are more fuel-efficient than trucks. This significantly reduces greenhouse gas emissions and minimises the environmental impact of freight shipping, making it a sustainable choice for long-distance transport.
Cons of Intermodal Freight
While intermodal transportation provides numerous benefits, it also comes with certain limitations.
1. Infrastructure Costs
Intermodal freight transportation involves significant infrastructure investment.
For intermodal freight shipping to work seamlessly, it needs robust infrastructure such as extensive rail networks, efficient intermodal terminals, and heavy-duty cranes. In case of limited or subpar infrastructure, the effectiveness of intermodal freight may suffer.
2. Coordination
Managing multiple intermodal freight carriers, each handling different parts of the transportation process, can be challenging. Ensuring seamless coordination and effective communication between these carriers throughout the haulage can also be challenging.
3. Transloading Challenges
Intermodal freight faces complexities and potential risks when transferring containers between different modes of transportation.
Conclusion
Intermodal freight transport's efficiency and resilience have made it a top priority for today's logistics managers. It is also a smart choice for businesses looking to ship wholesale orders seamlessly. Intermodal freight transportation is the way forward if you prioritise fuel-efficient, cost-effective, and fast shipping with top-notch resources.
At PACK & SEND, we're committed to bridging the gap between customers and intermodal transportation, offering the capacity and shipping solutions that ensure excellent service.
As Australia's leading Parcel Courier & Freight Reseller, we're dedicated to uncovering opportunities for cost savings, efficiency enhancements, and supply chain visibility for our customers. Ready to streamline your shipping? Let's connect and elevate your logistics journey today!
Frequently Asked Questions (FAQs)
What is intermodal freight transport?
Intermodal freight refers to transporting goods using multiple modes of transportation, such as trains, trucks, ships, and aircraft, without additional cargo handling when switching between modes. It involves transferring cargo between different modes of transport, often using standardised containers, to optimise the shipping process and reduce costs.
Who should use intermodal freight transport?
Intermodal transportation is ideal for businesses and individuals looking for cost-effective shipping solutions that use various transportation modes, such as rail, truck, and ship, for long-distance shipments.
Whether you're a small business owner or a large corporation, intermodal transportation offers a flexible and efficient way to move goods across different regions or countries.
Does intermodal freight provide shipment visibility?
Yes, intermodal transportation offers shipment visibility through tracking systems. These systems enable real-time monitoring of cargo location and status, ensuring transparency and peace of mind throughout shipping.
What are the latest trends in intermodal freight shipping?
The latest trends in intermodal shipping encompass increased digitization, adoption of sustainable practices, and specialised equipment for efficient cargo handling.