Longer hauls necessitate more efficient solutions. Intermodal transportation allows you to gain a lot of efficiency when the haul is more than 700 miles long.
As the distance traveled increases, the rail sector becomes more efficient owing to scale economies.
What is intermodal freight?
Intermodal shipping is the transfer of freight by two or more methods of transportation. Freight may be transferred from one mode to the next with the aid of intermodal containers, which allow them to move between trucks, trains, and cargo ships without interruption.
Intermodal freight is divided into two categories: container-on-flatcar (COFC) and trailer-on-flatcar (TOFC).
The TOFC model, as opposed to the Intermodal Container Transport (ICT) model, places the over-the-road (OTR) trailer straight onto the well car rather than an intermodal container.
COFC is more cost-effective because four containers can be loaded onto a well car rather than two trailers.
What are the benefits of intermodal shipping?
Intermodal and truckload shipping have better on-time delivery rates than pick-up and/or deliveries, but this is not the case when comparing intermodal to a tractor-trailer. Freight lanes that are suited for intermodal shipping may save 10% to 15%.
For longer road trips, more efficient solutions are required. When the haul exceeds 700 miles or more, intermodal transportation provides a significant efficiency advantage. As the length of haul increases, the rail portion becomes more efficient as a result of scale economies.
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Why does intermodal freight give a better high value of load?
It is not necessary to have high-value shipments use intermodal freight, but they are helpful for freight carriers. Because it is in constant motion and there is no easy way for a person to crawl underneath the load to take possession of the freight, having a shipment on the rail makes it considerably less likely to be stolen.
Is intermodal shipping slow?
No, although it has unfortunately acquired the undeserved reputation among many as being “slow.” Truck transit is the most frequent intermodal freight transportation across a single railway, with one day and two days added when the intermodal shipment is combined between two railroads.
Keep in mind that some intermodal lanes provide the same transit as a truck and therefore operate during the weekend, unlike its truck rivals.
Is intermodal freight sustainable and eco-friendly?
Yes, One train can transport 280 trucks in a single hour, while rail moves one ton of freight 470 miles on a single gallon of fuel. Intermodal shipping is 4 times more efficient than trucking, and it’s cleaner.
What is contract pricing for intermodal freight?
Contract pricing is a set price that an intermodal service provider agrees to to move your freight for a specific lane over a certain time. This price is typically negotiated each year. Contract pricing means that a shipper can agree to a set price and capacity for an entire year.
What is spot race pricing for intermodal shipping?
When a shipper requires to move freight, it must first negotiate the price. The shipper will be getting prices for shipping based on the market at the time they make their request. The spot rate for particular currency changes throughout the year based on seasonal patterns, along with a multitude of other economic or severe weather impacts.
What information do you need to set up an intermodal freight contract?
Shippers must know whether capacity is needed for one-time all-in spot rates, project rates, or contract rates when determining intermodal requirements. The origin and destination zip codes, as well as the commodity, are required. Also, don’t forget to tell us how much cargo there is, when it’s available, and anything else relevant.