Intermodal Freight Shipping: What It Is and Why It Matters

Despite the saying to never put your eggs in one basket, many transportation managers still rely on a single mode of transportation for their shipping needs. The issue is that this limits flexibility across seasons and reduces opportunities to control costs strategically.

Intermodal accounted for 25% of major U.S. railroads’ revenue in 2020, proving its growing role in freight strategies. This is why savvy transportation managers and supply chain directors leverage intermodal freight shipping when applicable. It utilizes different modes of shipping to ensure cost-effective transportation of freight, and helps businesses keep supply chains fluid and cost-efficient.

In this post, we’re going to outline what exactly intermodal shipping is and why you should be using it to improve the efficiency of your shipping process.

Definition of Intermodal Shippers

Intermodal shippers are shippers who use more than one type of transportation, such as utilizing both trucks and trains, to transport freight. We define intermodal transport as anything involving multiple modes of transportation, with other potential modes including aircraft, cargo barges, and container ships. 

Intermodal shipments are often sent in intermodal containers, which are specifically designed to be easily transferred between various transportation modes without requiring the unloading or loading of your cargo.

How Intermodal Shipping Works 

Here’s a quick rundown of how intermodal shipping usually works as a process:

1. Container Loading

The first step is preparing and loading containers onto the initial mode of transportation (usually trucks). Proper container loading ensures cargo integrity and reduces risk of delays or damage, giving leaders confidence in supply chain reliability.

2. First Leg (Truck/Drayage)

The first leg in intermodal shipping begins once a truck has been loaded with freight. This first leg encompasses the journey of that truck/drayage to the location of the next mode of transportation. Upon arrival, the cargo will be transferred. Efficient drayage keeps shipments on schedule and provides visibility into supply chain timing, allowing leaders to plan downstream operations more accurately.

3. Main Leg (Rail vs. Truck)

The main leg begins when your freight is transferred to the secondary mode of transportation being utilized. For example, your goods being transferred to a cargo train. Using intermodal containers streamlines this transfer, minimizing handling.

The stage consists of the entire journey of your shipment with this alternative mode of transportation. While trains are somewhat slower than trucks, they are more efficient when it comes to transferring large quantities and weights of goods at once. They are also more fuel-efficient, which helps with consolidating costs. Leveraging the main leg effectively can lower transportation costs and improve sustainability metrics, key outcomes for strategic decision-making.

4. Final Leg (Truck/Drayage)

Once the train arrives at the closest possible station for your delivery, another truck will be utilized to finish the final leg of the journey. Your shipment will be transferred from the train to the truck for delivery at your designated location. A smooth final leg ensures on-time delivery, customer satisfaction, and helps maintain overall supply chain performance metrics.

Why Do Shippers Opt for Intermodal Transportation?

Shippers opt for intermodal transportation because of its cost efficiency, capacity advantages, and reliability. In comparison with Over the Road (OTR) shipping, intermodal shipping allows you to transfer large volumes and weights of goods at a more efficient rate, reduces costs thanks to the fuel efficiency of trains, and can be safer for goods due to reduced handling made possible by containerized transfers.

Shippers use intermodal when capacity is tight in the truckload market. Intermodal volumes have grown steadily in recent years, reflecting its expanding role in shippers’ strategies.

Beyond the overall efficiency, there’s also the flexibility aspect to consider. Understanding intermodal transportation - and having the right software and carriers in mind to deploy it - is helpful in preventing potential bottlenecks in your supply chain.

Frequently Asked Questions About Intermodal Freight Shipping 

We understand that intermodal freight shipping might seem a little intimidating. You might think that at a glance, juggling intermodal logistics might not be worth the hassle. You also might wonder who some notable carriers are that provide intermodal services. Read on to see answers to frequently asked questions concerning intermodal transport.

What’s an Example of Intermodal Transportation?

One example of intermodal transportation would be receiving an order of electronics sourced from New York and needing to send them to California through use of both trucks and trains. 

With a sufficiently large order, it could prove cost-effective to have a truck pick up the shipment from your carrier’s warehouse in New York. Then, the truck would be transported to a designated train station. 

From there, the shipment of electronics would be loaded onto the train and transported across the nation to California. There, another truck would pick up the freight and finish the final leg of the journey, delivering it to your designated area. Because multiple modes were used without reloading the freight, this qualifies as intermodal shipping.

Is Intermodal Trucking Profitable?

Yes, intermodal trucking is profitable. Intermodal trucking requires less fuel and travel for the trucks as they are primarily used only at the initial and final leg of the intermodal shipping journey. This allows supply chain managers to depend on fuel-efficient trains to handle the brunt of freight transportation, which saves money and allows for the movement of a high volume of goods.

Intermodal shipping is profitable for railroads too, with data from the Association of American Railroads showing that Intermodal accounted for 25% of revenue for major U.S. railroads in 2020, more than any other single traffic group.

Who Is the Largest Intermodal Carrier?

J.B. Hunt is the largest intermodal carrier. This is based on data breaking down the total number of assets each intermodal carrier owns (provided by InTek Logistics).

Get Instant Quotes for Intermodal Freight with ShipperGuide

One of the most difficult aspects of intermodal shipping is finding a reliable carrier offering fair prices. Thankfully, ShipperGuide TMS makes this easy. 

The platform allows you to either import your own carrier network or make use of Loadsmart's carrier network to get quotes and book appointments. You can select modes, equipment, pickup dates, and more, and search by rates. Book a demo to get started with ShipperGuide!