Everything you need to know about intermodal freight shipping

When sending goods over long distances, intermodal freight shipping offers shippers a cost-effective and environmentally friendly solution. Combining multiple shipping types for a single shipment gives shippers a level of flexibility that cannot be achieved with direct shipping. 

In this post, we’ll explain what intermodal shipping is, how it works, and when to use it.

What is intermodal freight?

Intermodal freight is exactly what the name implies — it’s the transportation of goods between (inter) multiple modes (modal) of transportation. Typically used for long-distance and international shipments, intermodal freight shipping utilizes a combination of trucks, trains, ships, and airplanes to get goods from A to B. 

In the US, intermodal freight most commonly combines trucks and trains.

How does intermodal freight shipping work?

Intermodal freight shipping takes many forms depending on the type of transportation used. For example, a process that uses air, road, and rail would be slightly different from one that only uses road and rail. However, overall, the practice is relatively standard.

At the point of origin, workers will load all goods into standardized containers. Shipping containers are essential for intermodal freight shipping because they allow handling and storage using the same methods at every stage of the journey.

The containers are then transported by truck to either a rail yard, port, or airport and loaded onto the next mode of transportation. Within the US, this next leg of the journey will typically be carried out by rail, but international shipments may use air or sea. This stage covers most of the distance before arriving at another shipping hub, where it is loaded onto another truck for the final leg of the journey.

It’s important to note that intermodal shipping will use multiple carriers along the journey, meaning shippers need to coordinate with multiple parties during the process. Specialized carriers handle the transfer of goods between modes of transportation to ensure efficiency and reduce the risk of damage.

What are the advantages and disadvantages of intermodal freight transportation?

Intermodal freight transportation won’t be the best choice for every long-distance shipment. There are several factors you need to consider to determine if it will be the best choice for a specific shipment. 

Let’s look at some pros and cons of intermodal freight shipping. 

Advantages

• Cost-effective: Intermodal shipping is one of the most cost-effective forms of long-distance shipping. Cargo moved via intermodal shipping uses less fuel per twenty-foot-equivalent unit (TEU), and carriers take goods from several shippers, which means they can offer services at lower costs.
• Environmentally friendly: Because intermodal shipping uses less fuel per TEU, it’s also a more environmentally friendly way to ship over long distances.  
• Flexible: Because intermodal freight shipping does not limit companies to one form of transportation, they can organize logistics that suit their location and their customers' location.
• Scalable: Intermodal shipping methods handle large volumes of goods, meaning businesses can scale their shipments without worrying about finding new ways to transport them.
• Reduced risk: They keep handling to a minimum, and all goods remain in the shipping container, reducing the risk of damage or loss.

Disadvantages

• Slower: Intermodal shipping is slower than direct shipping due to the additional stops and transfer of goods between transportation types.
• Requires significant infrastructure: Companies may not be able to use intermodal shipping if there are no key rail yards or ports nearby.
• Coordination: Companies need to be in contact with multiple carriers throughout the journey.
• Additional fees: Companies may face additional charges for container transfers.

When should you use intermodal shipping?

Intermodal shipping is best for long-distance or international shipments when cost savings are more important than speed. It’s great for bulk shipments, though the extended transportation time means it’s not suitable for perishable items.

Companies looking to reduce their carbon footprint can choose intermodal shipping, especially if they can easily access rail or sea shipping options. Intermodal freight shipping is also great for sensitive goods as it reduces the risk of damage during transit.

Work with intermodal shipping professionals

While intermodal freight shipping offers businesses some great benefits, it can be more complicated to manage shipments through various shipping methods. That’s why working with experienced intermodal shipping professionals can help you decide if it’s the right choice for your shipments and can help you through the process. 

At DTS, our team has 30+ years of experience and has arranged over 2 million shipments. We have the knowledge and expertise you need to make the right choices for your business. Get in touch today to learn more about your intermodal freight options.