Top 5 Benefits of Intermodal Transportation

Is it wise to stick to a single mode of transportation? Depending upon the nature of the goods and quantity, the mode of transportation should be changed. If you need to carry the goods miles away twice or thrice in a week, it is not feasible to run the commercial vehicles to and fro. It may take one whole day or more to take your goods to the destination point. So, it is not always safe to depend on a single distribution channel if you want to run a successful logistics unit.

Intermodal Transportation for Moving Large-Sized Goods

Logistics service providers have enhanced the supply chain by offering various types of distribution channels. Choosing the right 3PL providers will help you identify the best mode of transportation fit for your business. If you are transporting goods that weigh more than 15,000 pounds, then it is better to utilise intermodal transport where you can send Less than Truckload (LTL) several times a week. The products are shipped in large steel containers or pallets to prevent any kind of damages. Two or more retailers can utilize a shared intermodal transportation facility for fast-paced movement. It also saves fuel and cost. Intermodal transport is best suited if you have to travel 200-300 miles a day. It can include rail transportation or truck-based shipping depending upon the distance you need to cover. Are you still confused about including intermodal transportation in your logistics planning? Well! Let’s see how intermodal transportation helps you control unnecessary expenses and boost profit rates: Explore the geographical nature and frequent transportation models in the countries or regions from where you want to ship and where you want to take the goods. In most cases, rail transportation will be more feasible than the highway. If you ship similar items frequently, and they include medium to low-value goods, it is better to use a shared intermodal system to reduce cost. If your business lacks the service of efficient drivers, it may not be easy to run a logistics unit of two or three drivers for long mile delivery. In such cases, you should choose intermodal transportation as it helps to reduce overhead charges also. 

Read More: Trim Logistics Expenses: 10 Quick & Simple Tips

Benefits of Intermodal Transportation

Integration of various distribution channels is necessary for logistics units to ensure feasible and secure transportation. Standardized packaging and container shipping has made it easy for an intermodal fleet system to ensure the security of the goods while transporting them through various channels. There are many considerable benefits of using an intermodal freight system in logistics. Here are a few that will help your business to get fast growth and revenue:

Low Cost of Transportation

Many logistics services spend a large amount of profit to ensure proper transportation. If you can reduce the transportation charge, you will be able to double up overall revenue. A wrong distribution channel brings you unnecessary expenditure. Sometimes, due to inexperience in logistics management, businesses spend a high amount on the transportation of medium or low-value goods. Choosing intermodal transportation will help you share logistics transportation with other retailers or businesses, which will reduce overall charges.

Accurate Shipment

Every logistics provider needs the fastest transport service for long-distance delivery. In such cases, it is better to choose intermodal transportation with a single destination point. Reduced loading and unloading time helps to cover a long distance in a short time. Since the transit is linear, there are no chances for delay or distraction in movement also. Hence, transportation will be smooth and faster.

Security of Goods

Security of goods is a challenge faced by most logistics service providers. When it comes to long-distance delivery, proper packaging and shipment should be ensured. In intermodal freight, steel containers or big pallets are used to transport goods. This protects the goods from cornering or any kind of damages. Reduces Carbon Footprint & Saves Fuel Frequent highway transportation is not an eco-friendly mode of logistics. The carbon emission rate is increasing day by day due to vehicle pollution. There is a need to adapt to a green logistics platform to ensure ecological balance and save fuel. Compared to highway transportation, rail transportation is much more eco-friendly in nature. And, since it can carry bulks of loads in a single run, it reduces carbon emissions also.

Recommended Reading: Top 6 Inventory Management strategies to Boost Supply Chain Efficiency

Visibility of Shipment Status

The cloud-based network has enabled data collection and tracking easier for intermodal transits. Let it be rail or highway, integrating software-controlled tracking technology like TMS facilitates real-time monitoring of goods and helps to update customers of delivery. How is Intermodal Transportation different from Multimodal Transportation? Intermodal transportation and multimodal transportation are often confused with each other. A clear cut understanding is necessary to choose the appropriate model. In an intermodal system, various carriers function at different levels of transportation. Whereas a multimodal freight system is contractual, a single carrier functions in the entire cycle. Businesses mostly prefer intermodal transportation considering its flexibility, low cost and easy processing. Businesses can choose the carriers for each leg of transportation by comparing the price and efficiency whenever they want.

Relevant Reading: Maximizing Efficiency: How to Optimize Your Last-Mile Delivery Process

Choose the Best 3PL Service Providers to Boost Intermodal Transportation

Businesses and logistics service providers need an intermodal transportation system to build a brand and cross the boundaries of cities and nations. The intermodal system has gained popularity as it boosts supply chain efficiency and delivery service by bringing innovation in fleet management. Collaborating with a seasoned 3PL service provider will help you discover the opportunities in intermodal transportation to leap ahead in the business race.