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Railroad Service vs Drayage Service - How to Avoid Intermodal Delays

October 9, 2024 Kevin Baxter

Rail Ramp with Tracks Trucks Containers

Freight delays happen. With so many moving parts, there are bound to be times when one of those puzzle pieces misses its desired mark. In the case of intermodal, delays are often attributed to the thing that makes it unique - railroad service. However, when slowdowns do occur for domestic containers on the move, it's more likely that the truck component, as in drayage service, is the culprit. The good news is, significant delays are rare, and the right strategy and partnerships can make them even more scarce.

Railroad service and intermodal delays

Especially for those looking at intermodal delays (which again, are rare) from the outside, railroad service tends to get the blame when shipments get held up. However, rail service is much more consistent than it gets credit for, with railroad schedules moving like clockwork the vast majority of the time. And after some rough spots during the pandemic peak (though who didn't have those?), reliability keeps improving as railroads continue to invest in their networks.

A look at the numbers backs things up - as Surface Transportation Board Rail Service Data show the number of Class 1 railroad intermodal trains held for service in the latest quarter this year at less than a third of what it was the same period in 2022. Also sharply down (nearly 50%) are the number of cars that idled excessively. All this is occurring alongside an uptick in average intermodal train speed from 28.3 to 29.5 miles per hour.

That data analysis comes from a recent Journal of Commerce piece titled "Intermodal rail must improve reliability to capture just-in-time freight: execs," which also points out 9 in 10 intermodal shippers said they were satisfied with rail service in the first half of 2024 when surveyed for JOC's (very comprehensive) Intermodal Service Scorecard.

Going back to the article, it discusses historical concerns with railroad service with a few recent disruptions relating to labor uncertainty and heavy port volume which at times led to competition for capacity between international freight and domestic intermodal. In addition to the raw number improvement noted earlier, intermodal leaders point to continued infrastructure investment and improved communication to both head off new problems and resolve ones that do pop up quickly.

Drayage service and intermodal delays

As a reminder, intermodal is considered road plus rail, as in, road for the short haul first and final mile segments, and rail for the long haul. While trains run their regularly scheduled routes, drayage service has no such schedule - still service runs smoothly most of the time.

There are plenty of ultra-reliable dray carriers, whether they be owner-operators or part of larger companies. But with (conservatively) thousands of dray carriers across North America - compared to seven Class 1 railroads operating on their aforementioned railway timetables - the truck portion offers more chances for issues (however rare) to arise.

For one, despite their best efforts, dray trucks deal with the same variables as anyone traversing the roads, like traffic jams, breakdowns, weather issues, etc. The JOC article referenced above notes that communication issues between railroads and last-mile transportation can lead to uncertainty around container pickup availability, which then leads to delays in setting appointments and getting drivers to the rail ramp. Dray carriers can be busy, so a missed window to schedule can mean it takes awhile to catch up. The same issue can arise at origin, but is less likely as the shipper can typically schedule comfortably.

How to avoid intermodal delays

For anyone with experience in freight shipping, uncertainty is the only certainty. The ones who thrive in such an environment are:

  • Those who can adapt (On the fly, to whatever issues arise. A dedicated operations pro who's monitoring the load the whole time doesn't hurt.)
  • Those with access, flexibility and strong partnerships (As in, direct relationships with Class 1 Railroads and the ability to use the widest variety of dray carriers possible - with the knowledge that these partners will be happy to answer a call or respond to an email from the IMC)
  • Those who communicate (Communication includes keeping you, the shipper, apprised every step of the way, communicating with the railroads when necessary, and communicating with that final mile driver to ensure appointments are made and kept)

And thus, the best way to avoid intermodal delays is ensuring your IMC of choice checks all those boxes. As you probably know, an IMC is a necessity to ship via intermodal in the U.S. The right IMC stays on top of your freight every step of the way and anticipates any issues before they cause you a problem. When something unforeseen comes up - whether it involves railroad service or drayage service - that IMC works with its partners to avoid delays. 

At InTek Freight & Logistics, we pride ourselves on being a service-first IMC that does check all the boxes, and we're happy to get to know your business needs to see how we can help. Simply request a quote and we'll get back to you quickly to discuss solutions. For more information about InTek, or logistics and supply chain issues in general, check out our Freight Guides.

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