Truckload is the dominant form of freight movement on the ground in North America, but untapped intermodal opportunities exist for a great deal of active shippers. In fact, a Cleveland Research study found 45 million lanes ripe to convert from truckload to intermodal and enjoy the cost and carbon savings the use of long-haul rail provides. The only obstacle is getting started on the intermodal conversion process - a process that this article aims to demystify by boiling it down to three easy steps.
Step 1: Evaluate Your Freight
Before moving forward with a truckload conversion to intermodal, it's important to evaluate the freight you have moving - as in, the type of product, the amount and frequency of shipments, your current costs, your delivery timeframe and, especially key, your freight lanes.
Product Type
While intermodal can handle FAK (freight of all kinds) with very few exceptions, there may be certain items that can make the conversion more simply than others. If you have temperature controlled needs, intermodal can handle those, too.
Amount and Frequency of Shipments
As far as amount and frequency, the more you ship, the better value you'll likely get from intermodal - as it is a volume business with generally plentiful capacity.
Shipping Costs
Speaking of that value, take a look at your costs using truckload or LTL, and keep those in mind when you get intermodal quotes, as you should expect to see a drop of 10-15% (and sometimes even more).
Delivery Timeframe
Of course with any freight, it's important it gets where it needs to go on-time. As a general rule, intermodal shipments' transit run truck plus one day - or two if changing railroads is needed. However, some lanes can be even - or even faster, such as trips between the U.S. and Mexico that avoid congestion at over-the-road border crossings. If times will be a bit slower, you'll simply need a slight adjustment in your pickup schedules as railroad service is nothing if not consistent.
Freight Lanes
Freight lanes are perhaps the most important conversion factor, as the other details can likely be worked out later. After all, if your origin or destination are too far from a railroad terminal - or too close together - there's not much you can do. The good news is, the amount of good intermodal lanes tends to surprise. The ideal combination is a dray of 100 miles or less each way to and from the railroad terminal, with the rail portion of the trip ideally 600 miles or more. There are exceptions to both rules, though, so it still may be worth moving on to step two.
Step 2: Contact an IMC
Once the internal evaluation is complete, the next step to get your shipments converted is reaching out to an IMC or intermodal marketing company. An IMC functions like a one-stop shop for all things intermodal, as it handles booking loads with railroads, booking origin-destination drayage, shipment tracking, billing, and just about anything else you can think of.
If you're used to working directly with a truckload carrier, the IMC will generally feel similar, functioning as your single point of contact. If anything, it's a carrier on steroids with the ability to consistently adapt to circumstances and use any assets out there to ensure your freight moves in the most efficient manner.
Speaking with an IMC will help confirm if some or all of your freight lanes are a fit for intermodal. And while all of those lanes may be, one way to evaluate if the company is a good fit for you is if they are willing to tell you that some lanes don't work for intermodal. Beyond that, the IMC can go over all the details with you - quoting rates, explaining blocking and bracing (which is not as complicated as many think), accessorials, and answering any other questions you may have before you reach step 3.
Step 3: Get Started
The third step is simple. After you've picked your IMC and discussed those lanes that fit intermodal best, it's time to get converted. If you've never used intermodal before, your IMC may suggest starting small to convert a portion of shipments or a single lane to see how well it works for you. Or you may both be comfortable enough to jump in with both feet. Either way, simply work with the IMC to book loads, then track them from pickup to delivery - and everywhere in between. Then, pay your single point of contact, and lather, rinse, repeat.
You're likely to be impressed by the simplicity and service level on top of the cost savings - without even mentioning the sustainability benefits. And you can scale up or down as needed anytime. The best part about this three step process? It can generally happen as quickly as you're comfortable with. As in, within a day or two of contacting the IMC, you can be up and running with intermodal.
Ready to get started? Simply reach out to us and we'll be in touch shortly to get the ball rolling. For more information about InTek, or logistics and supply chain issues in general, check out our Freight Guides.
