In this article, learn about:
What intermodal shipping is and how it works
The pros and cons of intermodal shipping
When to consider using intermodal transportation
There are many shipping modes available to suppliers, but that doesn’t mean a supplier has to pick a single option. There may be times when your shipment requires a more dynamic and flexible option—that’s where intermodal shipping comes in.
What is Intermodal Shipping?
Intermodal shipping is the use of multiple methods of transportation for a shipment. For example, a company may choose to utilize rail for the first part of the journey to move their products a long distance at a lower rate and then rely on a truck for the final leg of the delivery.
Intermodal shipping containers are used to make the transportation process, including the transfer between different carriers, as seamless and efficient as possible. This allows containers to be passed between trucks, trains, and cargo ships without handling the cargo directly.
What does this look like in practice? Intermodal shipments typically start and end their journey on a truck, but the middle of the journey may vary. A domestic shipment may start the journey on a truck, then move to a railyard. The container may then travel via train for hundreds or even thousands of miles. Once it reaches the rail destination, it would then likely be picked back up by truck and moved to its final destination. An international shipment may start the journey at a port and get loaded onto a cargo ship before being moved to a train or truck for the final legs of the trip.
Domestic vs. International Intermodal Shipments
Domestic intermodal shipping typically relies on rail and truck freight to move goods throughout the United States. These shipments use 53-foot shipping containers, which are a common container size for tractor-trailers.
On the other hand, international intermodal shipping utilizes either 20- or 40-foot shipping containers. These containers can be used on cargo ships, trains, and trucks, and allow the products to remain in the container for the duration of transportation.
ISO 668, the international standard for container dimensions and classifications, outlines the external dimensions, strength requirements, and identification markings for these containers to ensure compatibility across global transportation modes.
The Pros of Intermodal Shipping
There are a variety of benefits to intermodal shipping. Some of the most saliant benefits are:
Reduced costs: Shipping a large amount of goods a long distance can be very costly, especially if they are heavy. Intermodal transportation allows you to take advantage of a more cost-effective option, like rail, for at least a portion of the trip.
Less handling and risk: Intermodal containers are transferred between carriers without unloading the cargo itself. This minimizes handling, lowering the risk of product damage and loss.
More energy efficient: Over-the-road transportation, namely freight trucks, use a large amount of fuel for long distances. By shifting the long-haul leg of a trip to water or rail, intermodal shipping can significantly reduce fuel consumption and emissions compared to truck-only transport.
Large capacity: Intermodal freight systems are built to handle large volumes. Suppliers can transport more product per shipment, improving efficiency and reducing the number of trips required.
The Cons of Intermodal Shipping
While intermodal shipping has benefits, it’s not a one-size-fits-all option. There may be times when other shipment methods make more sense. Some of the drawbacks include:
Large infrastructure required: Intermodal relies on significant infrastructure (ocean ports, rail yards, trucks, cranes for loading, etc.). This can lend itself to complexity and increased costs if the sender is not close to relevant hubs.
Less control: Due to its complex nature, suppliers may outsource their shipping to third parties, which can reduce control of the timing and accuracy of shipments.
Potential delays: Because multiple types of carriers are involved, intermodal shipments may be at greater risk of delays due to unforeseen circumstances, like weather, accidents, etc.
When to Use Intermodal Shipping
Intermodal shipping is best suited to:
Shipments that travel long distances, such as cross-country or internationally.
Large-volume or heavy shipments may be very costly to move solely by truck.
When pick-up and destination locations are both within a reasonable distance from an intermodal hub.
Situations where you need to move a consistent volume of goods over an extended period of time.
When goods don’t require special handling or stringent delivery times.
How to Ship Intermodal
If you think an intermodal shipping strategy is right for your business, where do you go from here? Given the complex nature of intermodal freight, it’s common to outsource the process to a third party (3PL). These partners specialize in managing the coordination between rail, truck, and ocean freight, reducing the workload and complexity for your internal team.
When picking a 3PL, it’s helpful to consider these questions:
Do they have experience handling your type of product?
Can they provide real-time tracking across all modes of transportation?
Do they have a reputation for on-time performance?
Are they familiar with regulatory requirements at each stage of transport?
If you prefer to handle the shipping in-house, you’ll maintain more control over your supply chain, but with the trade-off of potentially spending more time and resources on the process. In-house management will require building relationships with multiple carriers, maintaining visibility across each leg of the shipment, and ensuring compliance with various transportation regulations. For suppliers with already-established logistics teams and the infrastructure to manage complex supply chains, managing the process internally may make the most sense.
Whether you outsource your shipping to a 3PL or manage the process yourself, taking advantage of intermodal shipping can give your supply chain a strategic edge in an increasingly competitive logistics landscape. According to the Intermodal Association of North America, the volume of intermodal freight rose 9.8% year-over-year in the third quarter of 2024, signaling an increasing demand for this dynamic method of shipping. As more businesses adopt intermodal strategies, working with a trusted 3PL or building out your own in-house method becomes even more critical to staying competitive.