Intermodal Transportation Helping Shippers Become More Competitive in 2023
The transportation industry is highly competitive, and companies operating more efficiently can gain a significant advantage. It can lead to increased profitability and market share. Shippers delivering goods faster and at a lower cost by optimizing routes can provide better customer service, resulting in enhanced customer satisfaction, repeat business, and positive recommendations. The primary goal of intermodal transportation is to leverage the strengths of each mode of transportation to create a more efficient and cost-effective system.
What Is Intermodal Transport and How Does It Differ from Multimodal Transport?
Intermodal transport refers to the movement of cargo using multiple modes of transportation, like trucks, trains, and ships using standardized containers that permit easy transfer between modes without the need for unloading and repacking the cargo.
Shippers need to book each transportation stage separately. While it may be more inconvenient, it allows them to optimize each stage for better efficiency and cost reduction. Additionally, intermodal reduces the time and costs associated with repackaging cargo and handling it multiple times during transport.
On the other hand, multimodal transport involves transferring goods between the modes using standardized containers or if required, using different methods of handling and packaging. However, the company executes only a single contract with the logistics company, leaving it to arrange for the different transport modes and remain liable for the safe and timely delivery of the cargo.
However, the company needs to agree to a single fixed rate and does not have the flexibility to optimize each stage. MX Solutions is a intermodal trucking company, reputed for offering excellent service and competitive rates.
How Does Intermodal Transport Save Costs and Increase Efficiency?
Reduced transportation costs: Intermodal transportation allows for more efficient use of transportation modes, which can reduce transportation costs. For example, transporting goods by truck may be more expensive than by rail, but by using both modes, a company can reduce overall transportation costs.
Increased capacity: Intermodal transportation can increase transport capacity by combining different modes of transportation. For example, a combination of truck and rail transportation can allow the transport of larger volumes of goods than just one mode.
Improved reliability: By using multiple modes of transportation, intermodal transport can improve the reliability of delivery. If delays occur in one mode of transportation, the shipper can use another mode, ensuring timely delivery.
Reduced congestion: Intermodal transport can help reduce road congestion, as it allows more efficient movement of goods. By using different modes of transportation, intermodal transport can help distribute the load across different routes and reduce congestion on busy highways.
Reduced carbon emissions: Intermodal transport can help reduce carbon emissions by optimizing transportation modes. According to Forbes, using trains to transport goods can save up to 75% in greenhouse emissions.
Improved supply chain management: Intermodal transportation can improve supply chain management by providing greater visibility and control over the movement of goods. By using technology to track and monitor the movement of goods, companies can optimize their supply chain and reduce costs.
Intermodal transport can save costs and increase efficiency by using multiple modes of transportation to reduce transportation costs, increase capacity, improve reliability, reduce congestion and carbon emissions, and improve supply chain management.