Intermodal trucking is a term used in the shipping world, but what does it really mean? And more importantly, why should you care? Well, if you're in the business of moving goods throughout North America, intermodal trucking is a company's best alternative or complement to any fully truckload-based logistics and supply chain strategy. You may want to explore that alternative yourself for a couple of reasons: 1) intermodal shipments average 15% to 18% savings over truckload, and 2) intermodal is environmentally friendly - significantly improving a company’s carbon footprint compared to truckload.
What Is Intermodal Trucking and How Does It Work?
While the highest profile differentiator between intermodal and truckload freight is rail versus road as the primary thoroughfare for cargo movement, intermodal trucking means that trucks and truck drivers are still an important supplement to the train when using this mode.
Intermodal trucking - often referred to as drayage - involves trucks moving intermodal containers to and from rail ramps, making the door-to-door connection possible for intermodal freight. Without intermodal trucking, shippers would find it difficult to get their loads to and from trains in most scenarios, which would in turn greatly hurt the viability of intermodal transportation as a freight mode.
Definition of Intermodal Trucking
The definition of intermodal trucking is the trucking involved with an intermodal shipment, sometimes known as drayage. To put it another way, intermodal trucking handles the first and last mile of a load of freight that has been shipped the long-haul portion by rail.
How Intermodal Transportation Works
The intermodal journey typically involves a few key steps. First, the manufacturing facility (or farm, or other point of origin) is where a shipper loads the intermodal container - already on an intermodal chassis - with freight. The intermodal truck driver then takes it over the road to the origin railroad ramp.
Alternately, when it comes to imports, intermodal trucking can connect a port to a rail terminal or port to a destination facility directly. In any case, this journey is usually best when it's under 50 miles, though the longer the rail journey, the more wiggle room for a longer dray connection.
Let's walk through an example of how intermodal works:
- There is a load of consumer goods shipping from Los Angeles to Chicago.
- The product sits on the loading docks in an L.A. warehouse. The intermodal trucking provider arrives at the warehouse with a 53 foot domestic intermodal container on a chassis.
- The container is loaded with the consumer goods. A driver then takes the loaded (and secured) container to an intermodal rail facility where staff lift it from the chassis and place it on a rail well-car.
- The train rail service then brings it - and lots of other cargo - to Chicago, where the drayage process is reversed from the origin process, so the truckload intermodal provider arrives at the intermodal ramp with a chassis in tow.
- The intermodal box is then lifted onto the chassis and the provider drives the shipment to the destination where it is unloaded. The destination could be an intermediary stop like a cross-dock, or it could be the final destination. It all depends on the requirements of the load.
Advantages of Intermodal Freight Transport
Intermodal shipping is the transportation of freight using multiple modes (inter = between, modal = modes). Technically, this could include any combination of ocean, rail, truck and air.
In North America, the term intermodal refers to the combination of trucks and railroads to move freight in shipping containers (aka containerized freight).
The term "domestic intermodal" often confuses shippers because domestic trucking is defined as truckload freight moving within U.S. boundaries, whereas domestic intermodal is defined as 53' intermodal containers moving throughout the continent, to include the U.S., Mexico and Canada.
One of the biggest advantages of intermodal freight transport is the potential for significant cost savings compared to shipping solely over the road. By leveraging the fuel efficiency of rail for the long-haul portion, intermodal can help shippers reduce transportation costs while still providing the flexibility of trucking for the first and last mile.
Efficiency in Supply Chain Management
Intermodal transport also enables more efficient supply chain management by optimizing the strengths of each mode. Railroads excel at moving large volumes of freight over long distances on a fixed schedule, while trucks provide the agility to navigate the final delivery to the customer's door. Together, they create a more streamlined and reliable supply chain.
From an environmental perspective, intermodal is a more sustainable way to move freight. Freight rail is on average four times more fuel efficient than trucking, generating 75% fewer greenhouse gas emissions. Converting truck freight to rail helps reduce the transportation industry's carbon footprint.
The logistics industry is super-focused on sustainability, yet most of the conversation is around the electrification of trucking. Electric trucks will eventually hit the market in a meaningful way, but currently infrastructure, weight and battery technology challenges are not moving quickly enough to make electric trucks the number one focus for creating a more sustainable freight footprint.
Intermodal solves the speed of implementing a more sustainable supply chain because it is not a new technology or solution. Intermodal shipping can happen as soon as today. A J.B. Hunt freight study indicates there are another seven to 11 million conversions possible from truckload to intermodal in the freight market today (more than double today’s entire intermodal market), making the transition to a more sustainable supply chain immediate.
Reliability for Long-Distance Transportation
For long-haul shipments, rail intermodal service offers unparalleled reliability. Trains operate on fixed schedules and aren't subject to the weather, traffic and other variables that can disrupt over-the-road trucking. This makes intermodal an attractive option for shippers with time-sensitive freight provided they plan for the expected transit time.
Types of Intermodal Containers and Their Uses
Intermodal containers come in a variety of shapes and sizes to accommodate different types of freight. The backbone of the domestic intermodal shipping industry is the 53' domestic container. These steel boxes are virtually the same as a 53' truckload trailer.
Specialized Containers for Different Cargo
In addition to standard dry boxes, there are intermodal containers designed for specific types of freight.
Refrigerated containers, or "reefers," have built-in cooling units to transport perishable goods - just like their trucking counterparts. The newer slimline temp controlled intermodal boxes hold the same number of pallets as a standard dry intermodal container.
Tank containers carry liquids and gases, while flat racks and open-top containers are used for oversized cargo.
Domestic vs. International Containers
Domestic intermodal shipping containers are built to a 53-foot standard, allowing them to maximize capacity for shipments within North America.
International containers, on the other hand, are designed to be stacked on ships and have more reinforced corner posts. International boxes come in 20-foot, 40-foot and 45-foot lengths. The "40s" are available in a high cube version for additional cubic capacity as well.
While international containers, also called ISO boxes, are intended for international over-the-water shipments, they can come inland, too. In fact, there are great incentives on the international containers to get back to the coastal port cities with paying freight.
The beauty of this ocean carrier incentive is, domestic freight shippers can take advantage of extremely low pricing under the right circumstances. Heavy product that tends to weigh out before it cubes out in a standard intermodal box or truckload trailer can gain the greatest savings, as compared to the alternatives.
The Intermodal Shipping Process
At the start of the intermodal shipping process, an empty truck arrives at the consignee point. The shipper or transporter in charge loads the goods onto the container at the back of the truck. Most likely, nobody will handle these goods from this point until they reach the destination.
The first step in an intermodal shipment is the pickup of the loaded container by a drayage truck. The driver transports it to the nearest rail yard or intermodal ramp. As noted earlier, this leg of the journey is usually less than 50 miles to minimize costs.
Loading onto Rail Cars
When the intermodal container arrives at the rail ramp, the container is lifted off the chassis and loaded onto a well car or flat car. Cranes or large forklifts are used to perform this transfer quickly and efficiently. The container is secured to the railcar for the journey ahead.
The railcar carrying the intermodal container is coupled to a train headed in the direction of the shipment's destination. Rail is used for the longest portion of the trip, often hundreds or even thousands of miles. The train stops at the rail hub closest to the final delivery location.
Drayage to Final Delivery Location
Once the train arrives at the destination intermodal ramp, the process works in reverse. The container is lifted from the railcar and placed on a truck chassis. A drayage driver then transports it to the customer's location, completing the door-to-door intermodal shipment.
All said, the total intermodal shipping process averages delivery expectations of truck transit, plus a day. For those intermodal shipping lanes that require an interline hand-off between two railroads, shippers can expect transits of truckload, plus two days.
Intermodal Trucking Jobs and Industry Trends
Intermodal trucking is a growing field that offers a variety of employment opportunities for drivers. Here's what you need to know about working in this industry. Intermodal truck driving jobs fall into two main categories: local drayage and regional drayage.
Local drivers typically operate within a 100-mile radius of the rail yard, making multiple trips per day. Regional drivers may travel up to 250 miles one way, spending a night or two on the road each week. Both are obviously much shorter distances and fewer overnights than long-haul trucking.
Current Job Market and Industry Growth
The demand for intermodal trucking services is on the rise as more shippers look to reduce costs and improve efficiency in their supply chains. This has created a strong job market for intermodal drivers, with many intermodal providers actively hiring. The industry is expected to continue growing in the coming years, making it a stable career choice.
Market growth is a given. As stated earlier, JB Hunt believes the market can more than double. Larry Gross, a well respected intermodal analyst, has two great articles on the growth potential that are well worth a read to see his perspective on the growth of the intermodal market
- Intermodal share data point to opportunities
- Market share holds key to recovery for US intermodal, truckload: analyst
Technology and Innovation in Intermodal Freight Transport
Like many industries, intermodal freight transport is being transformed by technology and innovation. From advanced tracking systems to autonomous trucks, here are some of the ways tech is shaping the future of intermodal.
GPS Tracking
One of the biggest challenges in intermodal shipping has been visibility. With containers changing hands multiple times during a trip, it can be difficult to know exactly where a shipment is at any given moment. However, new GPS tracking systems and supply chain management software are giving shippers real-time visibility into their freight's location and status.
Container Design
Lighter, but more rigid material will increase payload capacity, while collapsible containers will bring down storage and repositioning costs.
Automation in Intermodal Terminals
Logistics companies are also investing in automation to streamline operations at intermodal terminals. Automated cranes and guided vehicles can move containers faster and more safely than manual labor.
These technologies help reduce costs and improve efficiency. Terminals and yards are also ground zero for electric vehicles, as they don't require the same level of infrastructure investment as those heading out over the road.
Future Trends and Opportunities
Looking ahead, the intermodal industry is poised for continued growth and innovation. Artificial intelligence and machine learning will enable more predictive and proactive supply chain management.
Electric and autonomous trucks could revolutionize the first and last mile. And the rise of e-commerce will drive demand for faster, more flexible intermodal freight shipping solutions. The future of intermodal looks bright.
Conclusion
So there you have it, intermodal trucking is the unsung hero of the shipping global supply chain market, quietly working behind the scenes to keep our goods moving and our economy humming. Intermodal shipping is not always glamorous, but it gets the job done with a level of efficiency and reliability, along with reducing carbon dioxide emissions. The winning combination keeps the pressure on the trucking industry for the long-haul freight lanes.
From the seamless transfer of containers between modes to the cost savings and environmental benefits, intermodal trucking proves that sometimes, the best solutions are the ones that bring different strengths together. And in a world where time is money and sustainability matters, that's a pretty powerful combination.
The next time you see an intermodal container rolling down the highway or spot a train laden with cargo, take a moment to appreciate the unsung heroes of intermodal trucking. They may not get the spotlight, but they're the ones keeping our world moving, one load at a time.
In the end, the right freight provider partner should be able to leverage multiple modes when possible - whether land or by sea for truckload, intermodal, ocean or a combo - to get the job done in the most efficient manner. And it should incorporate the latest technology to plug in to market conditions, capacity availability, license and safety information, and shipment track and trace (shared with the shipper as well).
All of these components may sound like a big ask, but at InTek, we've got you covered. Just reach out to us, and make our Request a Quote form the last one you'll need to fill out for a long time. For more information about InTek, or logistics and supply chain issues in general, check out our Freight Guides.
