What Is Logistics Orchestration and Why Does It Matter?
The supply chain is a complicated and sometimes frustrating industry for shippers to navigate. With the multiple transportation options from LTL to parcel and just as many modes to consider, many shippers need help with determining which shipping method works best for their applications.
The truth is that there is no such thing as a one-size-fits-all model or logistics solution. However, one mode of shipping, albeit often overlooked, comes fairly close to a one-size sort of deal.
Yes, I am talking about intermodal shipping.
As a matter of fact, it is overlooked mostly by shippers who might actually benefit the most from it.
And who could blame them? Intermodal shipping is indeed slightly intimidating.
In this blog post, we'll explain how intermodal shipping works, explore its key benefits, and help you determine if it's the right solution for your freight needs.
How do Intermodal Shipments Work?
In the logistics world, shippers have multiple options to move freight from the point of origin to its final destination. Whether shipping on trains, planes, or ships, there exists an option for everyone. However, when the movement requires two different modes of transportation using a single container and bill of lading, it is an intermodal shipment — distinct from multimodal shipping, which typically involves separate contracts for each leg.
Intermodal shipping is when products are packed inside a container, picked up by an FTL carrier, then transported to a railway or ship for further transport. When the train or ship reaches its station, the container is off-loaded, and transported to your customer by the LTL carrier.
Benefits of intermodal shipping
Reliable Transportation
With 25 million annual intermodal shipments, you're joining a proven transportation method trusted across the industry. This dual-mode of transportation is one of the safest ways of moving freight. Most intermodal shipments move via railways in North America. Unlike highways and side-streets, train movements seldom face delays due to weather, traffic, or road conditions. This means that freight arrives at the final destination much quicker in many cases.
More Cost-Effective
Intermodal shipments may save a shipper a rather large sum of money. One of the leading costs for full container shippers is fuel. Furthermore, since fuel per mile for trains is much cheaper than a full semi-tractor trailer, the shipper has the potential of saving more than just pocket change!
Identify the Best Opportunities
The most successful intermodal shippers understand that this method of shipping is a comprehensive solution. Intermodal shipments come in handy if you ship several long-distance FTL shipments to frequent customers during a typical week.
Be Proactive About Packaging
The shipper packages the goods in an intermodal shipping container for shipment. That container stays sealed until it arrives at the destination. Due to this fact, the shipper is typically responsible for damage that occurs during transit (unless an accident during transport happens).
Final Thoughts
Thanks to Redwood's Modern 4PL approach and our expanded service capabilities, we now offer the flexibility to provide comprehensive intermodal shipment solutions. For more than 15 years, we have been providing solutions for moving and managing freight and sharing our knowledge across North America.
If you're looking to save money and improve supply chain movement efficiency, explore our case studies or give us a call today!
FAQs
What is intermodal shipping?
Intermodal shipping is a freight move that uses two different transportation modes with a single container and bill of lading. In a common setup, goods are loaded into a container, moved by truck to a rail terminal or port, then transferred to rail or ship for the long-haul leg and delivered by truck at the end. It is distinct from multimodal shipping, which typically uses separate contracts for each leg.
How does intermodal shipping work from pickup to delivery?
Intermodal shipping usually starts with a truck picking up a sealed container from the shipper. The container is then moved to a rail terminal or ship for line-haul transport, and after that second mode reaches its destination, another truck delivers the container to the customer. The same container stays sealed through the move, which helps streamline handling across modes.
Why can intermodal shipping be cheaper than truckload shipping?
Intermodal shipping can be more cost-effective because rail fuel per mile is typically much lower than the fuel cost of running a full semi-tractor trailer. For shippers moving long distances, that difference can create meaningful savings, especially when fuel is a major cost driver in full-container freight. The potential benefit is strongest on lanes where rail can cover most of the mileage.
When does intermodal shipping make the most sense?
Intermodal shipping makes the most sense when you move several long-distance full truckload shipments to frequent customers during a typical week. It is especially useful for shippers that can benefit from a comprehensive solution across repeated lanes rather than one-off moves. The biggest opportunities usually show up where long haul distance and stable shipping patterns make rail a practical option.
Is intermodal shipping reliable for time-sensitive freight?
Intermodal shipping can be reliable because rail movements are less affected by weather, traffic, and road conditions than highway freight. The article notes that it is one of the safer ways to move freight and that many North American shipments move by rail. That said, the best fit depends on whether the lane and delivery window align with the mode mix.
Who is responsible for damage in intermodal shipping?
The shipper is typically responsible for damage that occurs during transit because the goods are packed and sealed inside the intermodal container before the move. That makes proper packaging important, since the container generally stays sealed until it reaches the destination. The article notes an exception if an accident happens during transport, but the shipper still needs to be proactive about protection.
How common is intermodal shipping in North America?
Intermodal shipping is widely used in North America, with the article citing 25 million annual intermodal shipments. That volume reflects a proven transportation method that many shippers already trust. Its scale also helps explain why rail-based intermodal moves are considered a standard option rather than a niche freight solution.
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