How Intermodal Transportation is Changing the Game for Businesses
Businesses are always on the lookout for transportation solutions that offer cost savings, faster transit times, and improved sustainability. This is where options like intermodal transportation come in as a revolutionary game-changer, offering several advantages businesses simply can’t afford to overlook.
According to the Intermodal Association of North America, 95% of manufactured goods are transported via intermodal containers at some point during their journey. This high percentage reflects the efficiency and effectiveness of intermodal transportation, which offers reduced costs, increased efficiency, and improved sustainability.
Let’s explore the benefits of intermodal transportation and why shippers should consider it for maximizing their supply chain ROI.
What exactly makes intermodal transportation so great?
Enhanced Security and Lower Damages:
For starters, it provides access to specialized handling options that ensure your goods are loaded and unloaded with care at different ports, reducing transit times and lowering the risk of damage. Plus, intermodal transportation has demonstrated remarkable improvement in freight loss and damage statistics over the last two decades. This, combined with enhanced cargo security and reduced instances of theft, offer a significant value proposition to shippers who require secure and dependable transportation services.
Intermodal transportation is also experiencing expansion and growth in North America, thanks to investments in port and marine terminals, rail line-haul improvements, and inland facilities. This development increases the network’s capacity, improves service, and offers shippers more origin and destination choices, resulting in a more robust and adaptable intermodal network.
Reduced Carbon Footprint:
The most significant selling point of intermodal transportation is its eco-friendliness. It offers a remarkable advantage over traditional truck-based transportation by enabling a single train to carry a volume of goods equivalent to 280 truckloads.
Furthermore, intermodal trains can transport one ton of freight up to 470 miles using only a gallon of fuel. This exceptional efficiency translates to significant benefits, such as reducing traffic congestion, lowering greenhouse gas (GHG) emissions, and decreasing the likelihood of highway accidents.
Intermodal shipment – The intelligent choice for saving big bucks
When it comes to shipping, saving money is always a top priority. With intermodal transportation, you can reap the benefits of two specific money-saving strategies.
- Firstly, you can choose the best carrier and mode for each leg of the journey, allowing you to optimize your shipping plan and save money.
- Secondly, intermodal transportation provides economies of scale, resulting in cost savings of 15% to 20% compared to relying solely on trucking services.
When cost control is critical, intermodal transportation provides economies of scale. Most shippers spend more than 60% of their logistics budget on transportation. Especially at distances of 500 miles or more, intermodal transportation is the most cost-effective transportation option because it can add capacity through double stacking while retaining an advantage in fuel efficiency.
Are there any limitations to intermodal transportation?
Of course, the intermodal transportation has challenges and drawbacks, such as the logistical nightmare of dray distance. However, with real-time shipment tracking solutions, you can plan your drayage operations more precisely and avoid unnecessary delays or complications.
In conclusion, due to its numerous benefits, intermodal transportation is quickly becoming the preferred choice for industries like automotive and Fast Moving Consumer Goods (FMCG) due to its numerous benefits. With faster transit times and improved infrastructure, intermodal transportation is now able to compete with standard road services in terms of efficiency and cost-effectiveness.
So, if you want to save money, enhance the security of your products, and reduce your carbon footprint, intermodal shipment is the way to go.
Looking for an efficient way to move your cargo with one hundred percent real-time visibility? Feel free to reach out to us.