Intermodal Transportation: How it Works and When to Use It

What is Intermodal Transportation?

Intermodal transportation is the movement of goods using two or more modes of transportation within a single logistical journey. In this process, products are carried in standardized containers to allow passage between different transit systems without being unpacked or repacked. Different carriers manage each travel stage, coordinating smooth movement regardless of the long distance.

What are the Advantages and Disadvantages of Intermodal Transportation?

An intermodal transportation approach helps supply chain managers and transportation planners improve costs and enhance logistics capabilities. However, the strategy can also limit transit flexibility and prolong travel duration. Here’s a quick breakdown:

Advantages

• Cost efficiency: Combining different transportation modes based on travel distances and locations keeps freight costs down.

• High capacity: Intermodal transport allows for shorter local runs, helping drivers complete more trips per day and improving operational efficiency.

• Freight visibility: Containers are checked and tracked at each handoff point from start to finish, letting shippers know where their freight is.

• Reliability and cargo security: Minimal handling between modes reduces the chances for damage or loss.

• Sustainability: The approach takes advantage of more fuel-efficient modes , helping businesses lower their energy consumption.

Disadvantages

• Longer transit times: Intermodal is generally slower than over-the-road trucking and shipments involving railroads can add two to three more days to the travel time.

• Blocking and bracing requirements: Harsh vibrations during rail transport can cause loads to move around if they’re not secured properly.

• Commodity restrictions: Not all goods can move by rail. Shippers transporting restricted or prohibited products must agree with railroad management to stay compliant.

• Minimum volume requirements: Contractual intermodal transport requires a minimum load per week, making it impractical for smaller shippers.

• Infrastructure dependency: Intermodal performance depends on terminal capacity, chassis availability, and rail network reliability.

Intermodal vs. Multimodal Transportation

Multimodal transportation involves a single contract that holds one carrier accountable for the entire journey, including door-to-door delivery, even if multiple carriers are utilized. On the other hand, in intermodal transportation, each leg of the journey has a separate contract, resulting in various entities responsible for the cargo’s successful delivery.

Intermodal vs. Transloading

Intermodal shipping and transloading are two different methods for moving freight between modes of transportation. In intermodal, the cargo remains in a single container and completes the journey without being opened or repacked. Meanwhile, transloading involves transferring goods from one container to another at a determined point along the way.

Who Should Use Intermodal?

The following types of operations should consider intermodal transportation:

• Businesses moving large volumes over long distances: Companies in manufacturing, retail, and agriculture that regularly ship large quantities of freight across the country can use intermodal to reduce transportation costs without compromising reliability.

• Businesses shipping internationally: Companies that import or export goods can use intermodal to simplify the logistics of international shipping, combining ocean, rail, and truck travel into a single coordinated journey.

• Businesses with sustainability goals: Intermodal uses rail for the bulk of the journey, which produces significantly fewer emissions than trucking alone. It's a practical way for businesses to become environmentally friendly without changing operations drastically.

What Products Can You Ship Using Intermodal?

Below are some of the most common products that can be shipped using intermodal:

• Consumer goods

• Fresh produce

• Frozen products

• Vehicles

• Liquids freight

• Large items and heavy machinery, such the ones for agricultural and construction uses

• Dry bulk cargo

• Common goods

• Industrial and construction materials

• Hazardous substances

Key Components of Intermodal Operations

Intermodal transportation features four core components in its operations:

Drayage

Drayage is the short-distance truck trip that connects a facility to the nearby intermodal terminal. It’s generally done during the first and last stages of shipment when freight is transmitted to the rail or port network. This is the most time-sensitive component of intermodal logistics, as missing the terminal’s cutoff period can lead to delays.

Terminals and rail ramps

Terminals are the connection points where freight moves between modes of transportation. This is where cranes lift containers on and off railcars, and where trucks conduct pickups and drop-offs during drayage. Transportation planning should identify a terminal with the right location and sufficient capacity to avoid experiencing congestion and shortages.

Standardized containers

To systemize handoffs and securely protect goods, standardized containers are used to hold freight throughout the transport. The container size to use will depend on the route and type of shipment. For example, 53-foot containers are the standard for domestic transport in the United States, while ISO containers are sized at 40-foot for international trips.

Visibility and coordination technology

Using visibility and coordination solutions lets shippers track their freight in real time. These are tools that supply chain managers and transportation planners should make the most of. They provide them with updates on location, transport completions, and carrier confirmations, reporting every step of the way.

Examples and Combinations of Transportation

Intermodal transportation uses different combinations of transportation modes based on the distance, location, and type of freight. Here are some common examples:

Rails and truck

The combination of rail and truck transportation is generally used for long-distance domestic shipments. It involves a truck delivering the container to a rail terminal, then employs rail transit to travel most of the journey, saving costs compared to moving by truck alone. Once the train is near the destination, another truck completes the delivery.

Ocean and truck

Generally, moving freight internationally is done through ocean and truck transit. This involves containers being shipped through the water and up to a port. After that, a truck delivers the goods to its destination. ISO standard containers are used since the process is for international shipping. This combination is the staple for most import and export operations.

Ocean, rail, and truck

Using a three-mode combination of ocean, rail, and truck is necessary for shipment destinations that are far from the arrival port. When a ship hands off the container to land, the rail system carries the cargo up to the point that a truck can handle the remaining distance. Adding a rail segment to the logistical journey minimizes the number of trucks to procure, lowering costs. This combination is best for shipping management involving multiple distribution centers.

Truck and air

If speed is the highest priority, the intermodal combination of truck and air transit is the way to go. This approach is commonly used for time-sensitive goods, such as medical products and perishable items, that can degrade on long freight journeys. The flow starts with a truck bringing a container to a cargo aircraft. When the goods reach land, they’re carried by trucks again to the destination.

Rail and barge

Rail and barge transportation move heavy freight through non-oceanic bodies of water, like riverways and canals. It involves delivering cargo to a river port by truck. A barge carries the freight through the waters for the rest of the journey. The combination is saved for bulky loads with low value and no time-based requirements, making it a sustainable option.