Starting with the basics, intermodal shipping is simply using two or more modes of transportation. Utilizing intermodal containers, shipments are able to be moved seamlessly between cargo ships, trucks or trains. The advantages are plentiful, though it might be difficult to know how it tangibly affects the bottom line.
So, what are the business benefits of intermodal shipping?
Intermodal is a cost-effective, fuel-efficient, sustainable option when compared to long-haul trucking. Intermodal transportation has the available capacity needed by some and the consistent, reliable service expected by all.
While shipping by rail may sound old-fashioned, railcars hold significantly more load and offer more competitive pricing per mile than its counterparts. The cost is competitive, however, when freight needs to be moved long distances, rail can save businesses roughly .75–1 cent per ton-mile.
Many companies also consider their carbon footprint when choosing between freight shipping options. A standard truck can carry 80,000 pounds at a time and only gets around 7 miles/gallon, while rail can transport one ton of freight up to 500 miles on just a single gallon of gas. Having the option to move inventory in a way that is more sustainable, and only utilizing trucking in the last steps of delivery, make intermodal a choice many are making.
While local and regional shipping options are sufficient for some, intermodal transportation solves many capacity issues that companies may have. The consistency in service is not to be overlooked. Many drivers work on set schedules more closely aligned to office hours, having the option to ship via train means taking advantage of fully staffed loading docks that are equipped specifically for the incoming freight.
And intermodal shipping has come a long way with the adoption of 21st century technology. Rail has adopted automation technology that allows real-time tracking for every entity involved. This ensures the right people are where they need to be at the right time and on-time shipping and savings is passed on to the customer.
While businesses like Amazon and WalMart have perfected the free 2-day shipping option, many shipments cannot work on that model. Intermodal lead times can fluctuate due to many factors, so it is especially beneficial for shipments that have flexible timelines. Additionally, high volume and large capacity shipments have requirements that cannot be met with 2-day shipping style models. And while traditional trucking is not an option for every shipper, intermodal is.
For businesses looking for a cost-effective, sustainable shipping option, intermodal transportation offers benefits and rates that can’t be beat.
Around the world, the transportation and logistics industry is experiencing unprecedented disruptions and recent challenges have further stressed the supply chain. Consumer demand remains high – with no signs of let up – but the typical flow of goods is continuing to be delayed due to rapid swings in the labor market and restrictions placed on industries.
Transportation costs have increased dramatically for many reasons and those price increases are passed onto companies shipping their goods and consumers looking to make purchases. Workforce demands, driver shortages, regulations, and potential new emissions legislation that could mandate commercial vehicles in Canada and the United States toward battery-electric or zero-emissions are just a few examples of how these costs could be affected.
As organizations try to figure out how to work around the supply chain issues, there’s also the need to determine how to manage the transportation and logistics that go along with it – and ensuring the cost of it all works in favor of every party involved.
How can companies in need of transportation mitigate some of the costs associated with these lingering issues? And how can the transportation and logistics industry help pass savings along to organizations and consumers without sacrificing safety or service?
5 Strategies to Reduce Logistics and Shipping Costs
Be agile in how you’re willing to transport goods.
The mindset of, “this is how we’ve always done it,” has been confronted with so much change in the last couple of years. Prepaid, online, or upfront payments might only seem like minimal cost savings, but those savings can add up.
Consider packaging changes and be willing to adjust quickly.
Something as simple as packaging goods differently can allow for stacking, Tetris-like packing, and utilizing vertical space in a seemingly horizontal industry.
Remain open to load consolidation.
Cut shipping costs on less than truckload freight with a third party that does the work to secure the most competitive rates, streamline shipment coordination, pick-ups, and deliveries.
Be willing to spend more to save more.
It might seem counterintuitive, but with current labor shortages, it’s important to weigh the cost of hiring additional help at potentially increased rates in order to fulfill demand. The benefits of being seen as a reliable delivery service can ensure continued business.
Find a transportation and logistics provider.
No two supply chains are the same and companies in need of transportation services can benefit from the relationships that are built by third-party logistics coordinators. Multiple pick-ups and drop-offs, expedited shipments, and just-in-time delivery service can help cut costs to companies used to handling shipments one at a time.
For Surus, company culture is a lived experience we engage in every day with the people around us. We understand that going into work in 2021 is an opportunity to work in an industry that we love, while also being an opportunity for growth and relationship building.
It’s important for us to create solutions for our clients, while also creating an environment for the people who show up every day to build a business right alongside us.
We are founded on the philosophy that good relationships and good business are one in the same. That goes two ways: relationships that we build with our clients, and relationships that we build with our teammates.
We strive to maintain a fun, vibrant, and honest company culture that not only supports our team members and their families, but also strengthens our local community, all while offering efficiency out of chaos for our customers.
We back this up with a few key values:
Collaboration
We work together, communicate honestly, and pick each other up when we’re down. We celebrate, support, and encourage one another. Our team is designed in a way that allows each person to be a complementary piece of our puzzle.
Integrity
We are honest and transparent about personal and company goals, and provide an environment that allows team members to be transparent, as well. We expect a lot from the people working at Surus – and we strive to live up to their expectations, too.
Family First
We take a genuine interest in and support the people who work for us, and the people who support them. For this reason, we aim to be flexible in all ways and remember that we are all human first. We embrace the good that every one of us brings.
Vulnerability
Eventually, we all make mistakes. It is important that when we fail, we learn from it. We will always try to laugh at ourselves and hope those around us are open to laughing at themselves, too.
Resilience
As we lean into our mistakes, humanity, and differences, our willingness to learn gives us the opportunity to encourage even more growth. Through creative problem solving and the space to take calculated risks, we connect and grow together.
Our name comes from the bravest and strongest war elephant in the Carthaginian army. Like Surus the elephant, we are loyal, supportive, strong, and efficient. Above all else, we are a family of teammates and humans working to build relationships and a business that can be counted on.
