Full truckload, less-than-truckload, parcel, intermodal. Over-the-road, air, cargo ship, train. In today’s world, there are numerous ways to ship your company’s freight that it can be a daunting task to ensure you make the right call when it comes to moving freight. However, determining the correct shipping mode can have many benefits for your company, including cost-savings, operational efficiencies and improved customer relationships. But, how do companies determine the best mode for shipping their freight?
Intermodal transportation is becoming more and more popular for a number of shippers. It is a process that involves two or more modes or carriers to move goods from the shipper to the receiver. It can include full truckload, less than truckload, rail and cargo ship or any combination. Shippers have increased their usage of intermodal transportation since the pandemic and ecommerce surge because it is often less expensive compared to over-the-road shipping as it is generally charged per load instead of per mile.
However, the intermodal industry is seeing some of the same issues affecting the entire supply chain. Freight capacity remains very high, and it is causing congestion at shipping and inland rail ports, making deliveries take longer than they would in “normal” conditions. The drayage sector is also affected by the driver shortage that has negatively impacted the entire trucking industry. Additionally, as reported by the Journal of Commerce, there is a shortage of containers and chassis at major intermodal markets because of the high amount of freight.
Therefore, shippers need to weigh the benefits versus the challenges when deciding to ship intermodal or not.
