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Advantages of intermodal shipping for your supply chain

Intermodal shipping refers to moving freight using multiple transportation modes seamlessly in one journey. This multimodal approach combines the strengths of truck, rail, ocean, and air transport to optimize efficiency, capacity, and costs. Here are the key benefits intermodal solutions offer shippers:

Reduced Freight Spend 

Consolidating loads across modes lowers distribution costs compared to relying on one mode alone. Intermodal routes are designed to leverage the most economical transport legs. Companies save significantly over time, especially on lengthy routes.

  1. Increased shipping agility

Intermodal provides use the ideal mode for each trip segment based on variables like speed, congestion, price, and destination capabilities. Shippers gain options to reroute goods dynamically using different modes as conditions change.

  1. Enrolment in programs like nhds

Participating in programs like Norfolk Southern’s Norfolk Highway Direct Shipping allows accessing integrated truck and rail services across major Intermodal lanes. This opens capacity for shippers during periods of tight trucking supply.

  1. Consistent transit times

While shipments change modes en route, Deliveree Indonesia cargo moves seamlessly allowing reliable estimated times of arrival. This is aids supply chain planning and inventory management.

  1. Added shipping security

Minimizing handoffs reduces cargo damage, theft, and losses. Shippers retain control for longer periods during the journey compared to using multiple providers.

  1. Increased sustainability

Combining truck and rail matches long-haul efficiency with local flexibility. It lowers emissions, road congestion, and driver shortages associated with long-haul trucking alone.

  1. Leverage backhaul opportunities

Rather than running empty returns, intermodal providers can coordinate cargo needing opposite-direction transport. This allows companies to profit from backhauls.

  1. Access to wider markets

Multimodal capabilities allow connecting even remote destinations cost-effectively through strategic routing. Shippers can economically reach emerging international markets.

  1. Simplified coordination

Experienced intermodal providers take ownership of end-to-end shipment management. It consolidates communications, paperwork, tracking, customs clearance, and billing into one source.

Ability to handle specialized loads 

Unique cargo like oversized machinery and hazardous materials can be transported using appropriate modes for those items. Trying to force fit into one mode creates problems. Today’s logistics complexity requires flexible, optimized solutions. Intermodal shipping meets that need through cost-effective, resilient capacity tailored to shippers’ variable requirements. Here are some additional benefits of intermodal shipping:

  • Increased inventory velocity

The combination of rapid transit times and reliable scheduling improves inventory turns and reduces cycle stock needs. Goods spend less time in transit between destinations.

  • Enhanced service levels

Intermodal capabilities ensure critical freight makes it to destinations on time consistently. This improves order fill rates and customer satisfaction.

  • Asset utilization

Using each mode for its distinct advantages (long haul for rail, local pickup/delivery by truck) maximizes the return on transportation assets and infrastructure.

  • Regulatory compliance

Intermodal experts handle dangerous goods classification, modal transportation security mandates, customs filings, chain of custody, and other regulatory needs seamlessly.

  • Route flexibility

Dynamic routing options allow working around challenges like weather disruptions, port congestion, or driver shortages – improving on-time delivery.

  • Big data analytics

Leveraging load data across modes identification of efficiencies related to flows, seasonal demands, and equipment balancing.   Intermodal shipping requires extensive operational coordination expertise. They are selecting an experienced logistics partner to maximize benefits while focusing internal resources on core competencies is key to realizing the full advantages. Evaluating if a multimodal strategy is right for all or a portion of your freight spends possibilities for optimizing your enterprise transportation.

About Sue W. Childers

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