Can Intermodal Save Your Company Money?

What’s the big deal with intermodal? You can save money, a lot of it. 

So how does intermodal work?
Intermodal involves more than one mode of transit. Typically the modes include truck, rail, ship and or barge.  For purposes of freight movement within North America we will use truck, rail and ship.

• First… a container, much like any other trailer that comes to your facility, is loaded with the goods to be transported.  Extra securement of the freight may be necessary as Intermodal containers are handled and travel differently than a typical truck traveling over the road.  
• Second… once the truck is loaded, the container is taken to the rail depot.  
• Third… the container is lifted off the chassis and placed onto a flatcar.  
• Fourth… when the container reaches its destination, the process is reversed and the container is delivered on a truck to the consignee.

Intermodal trucking reduces two of the largest cost centers associated with freight spends.

1. Fuel
2. Drivers’ wages

Expenses are reduced by using the efficiencies of truck and railroads combined. 
According to CSX Railroad, “moving freight by rail is 3 times more fuel efficient than moving freight on the highway. Trains can move a ton of freight nearly 450 miles on a single gallon of fuel.”  In comparison, a truck can move 22 tons of freight 7 miles on one gallon of fuel. 

Drivers’ wages are reduced as drivers are used more efficiently to pick up and deliver freight to and from rail yards rather than hauling freight across the state or country.  Reductions in two of the major cost drivers for freight allow for the intermodal provider to pass the savings on to the customer by reducing the amount of money spent moving the product through the supply chain. 

In addition, using intermodal to move your freight, allows you to:

• reduce the greenhouse gas emissions
• avoid issues related to government regulations of truck drivers
• add to your bottom line by saving you money
  

Have you thought about using intermodal? Let us provide you with a quote.

Post by: Patrick Shea, Vice President, CAM Logistics
CAM Logistics: www.camlogisticsllc.com | [email protected].