We all know that in logistics, sometimes unavoidable “stuff happens”. The world of intermodal shipping is no different. It’s important for intermodal logistics companies and shippers to all be aware of what they have control over and should actively work to prevent, versus what incidents are simply anomalies. Let’s go over some possible odd ball incidents and who, or what, can prevent them from happening.
Derailment
Trains don’t often derail, but when they do, everyone hears about it. The fact is, although it’s a rare occurrence, these incidents are usually not preventable-at least not by you or your intermodal provider.
Trains can derail for a variety of reasons: issues with the track, human error, or mechanical issues with the train. Obviously, an intermodal shipping company can’t predict or prevent this, but they can help you through the claims process if a derailment occurs, as well as educate you on how to block and brace your shipments to help avoid this. One of the only times a claim can be filed on intermodal shipments and have a real chance of being won, is when the train derails and there were no errors in blocking and bracing the freight.
Train Lateness
Delays can happen with any type of shipment, but trains can sometimes arrive later than predicted due to an array of reasons, whether there’s something mechanically wrong with the train, or a strong storm prohibits safe travel. Regardless, this is another situation where it’s typically out of the intermodal marketing company’s hands.
However, modern technological updates to the intermodal industry have allowed for the best tracking methods in its history. With that being said, any type of delay can be instantly communicated to you so that you can plan accordingly. It’s also recommended that extremely time-sensitive freight not be shipped over the rail, due to lack of control over delays.
Capacity Availability
There might come a time when your intermodal shipping provider informs you of delays or inability to ship at certain times due to capacity. Since there are only a handful of railway companies across the nation, equipment can be in short supply at any given time. This goes for dray carriers, chassis, and containers.
You might wonder “why shouldn’t I work directly with the rail so I have a better shot at their capacity?” Unfortunately, shippers cannot work directly with the rail, only intermodal shipping companies can.
WEATHER
This seems pretty obvious, but it’s worth noting: weather has a mind of its own. This can be particularly obvious when big storms come through, like hurricanes and blizzards.
Delays in shipping times are definitely not preventable for these events, but you can be prepared by following approaching storms and monitoring your supply. If you need the freight at the destination as soon as possible before the storm hits, shipping earlier than usual on the rail is one option, or perhaps another mode of transportation, like expedited LTL or truckload, would be a better option.
As mentioned above, high-tech tracking equipment will keep you updated throughout the shipping process and through any delays.
Improperly Blocked and Braced Shipments
One of the top tips for ensuring your freight arrives in the same condition it left the origin in is to properly block and brace it in the shipping container. This process is slightly different for each shipment based on its size and dimensions. If the shipment is not properly secured, it can shift during transport, which can not only damage your freight, but even cause a derailment in some cases.
Unfortunately, if your shipment is found to not be blocked and braced properly, it can fall back on you as the shipper, since the shipper is held responsible for the bracing of their shipments.
No one likes bad surprises, like a delay in shipping or damaged freight, but the good news is Trinity can help with most issues that may cause these problems. Sometimes things just happen, and the intermodal shipping provider may not be to blame. Rest assured, keeping an open line of communication with your intermodal shipping company can minimize potential issues. To learn more about intermodal shipping, click here.
You might already know that shipping over the rail is a reliable, consistent, and economical way to get your goods where they need to be, but you should take steps to ensure you’re getting the most efficient service. Here are some insider tips for you to ensure you’re getting the biggest bang for your buck.
Examine your supply chain.
When using intermodal transportation, it’s important to consider the ebb and flow of your products in the pipeline. Since intermodal shipments often take about a day longer than those over the road, it can be a little more problematic to receive product on a tight schedule if demand spikes. Having a well-planned and organized inventory and management system could be the difference in profit margin for you.
Flexibility is key.
How tight are your pick-up and delivery times? Sometimes railroads’ schedules might be different than what you planned for. If your inventory is well-managed, perhaps you can wait to have your product delivered until the next day, especially if it can get you that better rate.
Don’t forget to factor in drayage as well. Your intermodal shipment might be at the yard, but perhaps a dray can’t be there the exact time you hoped for. Having a flexible schedule could get your load there at a more convenient time for everyone involved, and possibly cheaper, too.
Know when intermodal is the best mode.
The real economic advantage to shipping over the rail kicks in for shipments traveling around 600 miles or more. There is often a slight delay compared to shipping over the road – meaning what would usually take three days to arrive on a truck might take four or five days to arrive if you ship intermodal. Your shipments also must weigh 42,500 pounds or less.
So if you’re shipping long-haul freight, you’re flexible with your delivery dates, and your freight meets the weight requirement, that means intermodal could be the best mode for you.
Block and brace as if your life depended on it.
Blocking and bracing refers to how your shipments are loaded and prepared for transit to ensure that there won’t be shifting during transport. Freight that can easily shift around in transit can be at risk for major damages, and since the shipper (you) are held responsible for proper blocking and bracing, that can be an expensive mistake.
If you’re unsure of how to block and brace, work with an intermodal provider, like Trinity, that can arrange for a railroad representative to come and train your employees how to block and brace correctly at no charge to you. Or, if you are familiar with the concept and just have a question with a particular load, Trinity can work with a railroad engineer to build a floor plan that explains in detail how it should be blocked and braced effectively.
Work with a third-party intermodal provider.
As an added bonus, working with third-party rail provider usually means one call does it all. Despite the common belief that the shipper has to arrange the pick-up and delivery of the product before and after the rail portion, Trinity can take care of the shipment door-to-door. Having an intermodal provider manage and track the shipment, as well as send you updates, reduces the time your personnel have to spend being involved in the shipment and therefore can reduce your overhead.
Taking all of these tips into consideration could make intermodal shipping even more of a time and money saver for your supply chain. For more information about Trinity’s intermodal services, or to get a quote, call our help line at 844-900-RAIL.
There’s no easy way to answer the question of whether to go with an asset-based or non-asset based provider for your intermodal needs, because it truly depends on what your business requires to keep components and products moving. Let’s face it, transportation is critical, but it’s not usually a profit center – it’s an expense. This is all the more reason to pick an intermodal transportation company that can suit your needs and your budget.
So, how do you keep transportation costs low without sacrificing reliability and service? And who do you use to achieve that? It might be an intermodal provider with their own fleet of containers (asset-based), or it might be a provider that depends on a network of carriers (non-asset based), or it may even be both.
Asset-Based Providers
There are approximately 237,000 domestic intermodal containers in the U.S. fleet currently, and asset-based providers control 157,000 of these.
With asset-based providers, it’s all about their network. They must work to keep their network fluid, which means maximizing equipment utilization as much as possible. Profit determines everything – your rates, and when you get equipment, if it’s available. Shippers using asset-based companies often find themselves on their provider’s schedule, not their own.
While asset-based intermodal providers can sometimes offer competitive rates, this is not always the case. If you are lucky enough to fit into their preferred network and can adjust to their schedules, choosing them may benefit your budget. If you don’t, or don’t always, or just can’t be in their network, the rate advantage will not be there.
Sometimes, the needs of the network change. This can happen at any time, and when it does, you may need to adjust again – because it can affect your rates, available capacity, and loading schedules. Where you are geographically, how much business you do with a supplier, what the shipper down the street is doing – these all come into play when the asset-based provider needs to prioritize. Their customers end up crossing their fingers, hoping that they’ll make the cut.
Non-Asset Based Providers
Non-asset based providers have access to the entire fleet of 237,000 domestic rail containers, huge pools of shared 20’, 40’, and 45’ containers available for domestic use, and are able to partner with all rail providers. To them, networks don’t matter. Non-asset providers only take one thing into consideration – their customer’s needs. This allows them to create flexible and customized solutions for the customer, and if the customer’s requirements change, the provider is able to adjust fairly quickly.
Non-asset providers are able to find the most competitive pricing and available capacity by looking at all of the options, not just one. All equipment types, every railroad, every provider, every drayman are able to be considered, which makes finding the best option and cost for the customer’s needs more attainable.
Non-asset providers invest in expertise, customer service, and technology, not equipment. They aren’t tied to managing their investments – they can focus 100% on service and customizing the best option for each customer based on the customer’s needs, not the needs of a network.
So, when looking at asset-based versus non-asset based intermodal providers, be sure to consider these things:
- Will you be shipping based on your schedule or someone else’s?
- Does this fit your needs or someone else’s needs?
- Does your provider have access to all 237,000 domestic containers (plus thousands of 20’/40’/45’ containers)?
- Does your provider have access to all providers and all rails?
- Were all options explored to come up with the best cost?
- What’s more important to your provider: you, or their equipment and network?
The answers to these questions will help provide you with the best route to getting your goods on the rail and to their final destinations. As a non-asset based provider, Trinity Logistics is poised to assist with your intermodal needs in accordance to the benefits listed above. To get a quote, click here.
There seem to be a lot of misconceptions about intermodal shipping, especially compared to other modes of transportation. Shipping over the rail is definitely worth your consideration, so we’re going to set the record straight on some of these intermodal myths. Have you discounted the idea of intermodal shipping because of one of these misunderstandings?
1.“Shipping via rail is slow.”
Because rail shipping has been around for a long time, it was, as you can imagine, quite a slow method of transport many decades ago. However, it’s a very different story now. The fact is: yes, moving freight via rail is usually slower than moving it over the road, but probably not as dramatically as you think.
Most lanes are only about one day behind truckload shipping. Sometimes, loads that must be interlined between railroads can take a bit longer. However, for most customers that utilize rail shipments, the extra day or two of transit time is a small price to pay for such large cost savings in comparison to other modes of transportation.
2.“Intermodal shipping is unreliable.”
Before technology and infrastructure developments, the rail was deemed too unreliable, with unpredictable transit times and delivery dates. These days, that couldn’t be further from the truth. In fact, countless major retailers utilize the rail to move their shipments across the country, depending on its reliability. Most intermodal lanes are in the high-90th percentile for on-time delivery.
3.“There’s a much higher chance of damage and loss with intermodal.”
Some may claim that shipping intermodal increases the chances of damaged freight due to the combination of truck and rail services. The bottom line is that this isn’t true. As long as the freight is blocked and braced properly, the train is in for a smooth ride; in fact, in a study done by the Association of American Railroads, they found that the ride quality environment on the railroad is similar to the ride quality on the highway. There’s also a lower risk of damage due to accidents and weather.
Others seem to think that chances of loss are higher with intermodal shipping. Again, this is just an untruthful myth. In fact, chances of loss are significantly lowered, because once the container is loaded onto the train, it is locked up and on the move for almost the entirety of its trip. The freight is not vulnerable to be hijacked at a rest stop like it would be on a truck.
4.“Tracking intermodal freight is difficult.”
When you ship over the rail, there’s truly no need to wonder or stress about when your freight has been picked up and delivered or where it’s at in between. It doesn’t “vanish” once the train pulls away from the rail yard. Many intermodal containers are equipped with tracking devices that allow your logistics provider or rail carrier to provide you with real-time updates on the location of your freight. When you ship intermodal with Trinity, we are in constant contact with the rail provider to ensure we have up-to-date information on the location of your freight.
Just like swallowed chewing gum doesn’t take seven years to digest, intermodal shipping is not a mode of transportation you should avoid due to inaccurate myths. This mode of transportation can save you a significant amount of money and is worth your consideration. To get an intermodal quote, click here.
Shipping temperature-controlled freight can be a very nervewracking experience. Whether you’re shipping ice cream that could disastrously melt, or beer that might freeze in transit, the risks are higher than a regular truckload shipment because your product is more vulnerable.
For a long time, the go-to for shipping refrigerated freight has been, of course, reefer truckload. But did you know that there’s an alternative that is often cheaper and more reliable? Shipping your temp-controlled freight over the rail via refrigerated intermodal is quickly becoming an extremely popular trend.
There’s many reasons for this. A huge one: The technology involved is fairly advanced and takes much of the worry and stress out of the process. When you ship your freight via refrigerated intermodal, the containers are enabled with 24/7 satellite tracking, internal temperature monitoring, and the ability to remotely change the temperature of the containers. The reefer units also have 120-150 gallon fuel tanks, which is roughly two to three times the capacity of the tanks on reefer units typically found on trucks. It’s pretty futuristic!
Beyond the reliability of this mode, there is a potential for a huge cost savings in comparison to shipping over the road. Because an intermodal train uses so much less fuel per pound of shipment, it usually is an extremely affordable option, especially for reefer freight.
Jeremy Odom, an account manager here at Trinity, manages all the shipments for one of our customers, a well-known non-dairy frozen dessert manufacturer. He’s been assisting them with transitioning from reefer truckload to refrigerated intermodal in the lanes where it makes sense to do so, and so far, they’ve been very pleased with the results.
“They had heard of it before, but we suggested it for certain lanes and they’ve been very happy with the cost savings!” Jeremy shared. “I surprised them when we shipped a two-drop ice cream load via intermodal. They were impressed that we could do a multiple-drop shipment over the rail. In my opinion, refrigerated intermodal really is a safer way to transport perishable products. The reefer containers hold so much more fuel than an over-the-road reefer unit, and the up-to-date tracking and remote temperature control technology is absolutely amazing!”
If you’re considering experimenting with refrigerated intermodal shipping, ask yourself these questions: Are you looking for a way to save money on your reefer freight? (That one’s a no brainer.) Are you often concerned with the well-being of your temperature-controlled shipments? Do you frequently ship long-distance (800 miles or more)? Are your pick-up and delivery points near intermodal terminals? (We’ll help you figure this one out.) Do you have flexibility to adjust to slightly longer transit times, in some cases? If you answered yes to most or all of these questions, you are a good candidate!
What’s the next step? If you’re still unsure about refrigerated intermodal and want to get more information, you can request a consultation here and we’ll have someone get in touch with you to address your concerns. If you’re gung-ho excited to start using this method and dying to know how much money you might save, you can go ahead and request a quote on our website and we’ll get you a rate ASAP!
According to this study, the number of companies with an environmental stability program in place increased by 54% in 2010, and an even greater 69% reported that they had deliberately increased their efforts to reduce their carbon footprint. This number has undoubtedly risen year after year, and now, in 2014, the focus on environmental sustainability is greater than ever.
Sustainability programs aren’t just good for the environment – it’s proven that they have a positive impact on the public opinion and culture of your company, too.
When your company’s business depends on shipping freight, it’s easy to feel like you have no choice but to negatively impact the environment, due to the inevitable fuel consumption and carbon emissions of the trucking industry. However, many companies either are not aware of, or do not consider, a valuable alternative to truckload shipping that cuts down on these impacts significantly: intermodal shipping (over the rail).
With intermodal shipping (which literally means “multiple modes”), a truck brings the container from your pick-up location to the nearest rail facility, where it is loaded on a train and then delivered to the rail facility nearest your delivery location. The container is then loaded onto another truck, which delivers the freight to its final destination. When you book an intermodal shipment with us, it’s door-to-door service, so you don’t have to worry about the drayage (the truck bringing your shipment to and from the rails) – we take care of it all.
The difference in fuel consumption and carbon emissions when you ship intermodal is staggering, which makes it a very popular choice for companies with a sustainability initiative. The rail industry is fully aware of this and has made continued strides to further increase fuel efficiency, resulting in a 94% fuel efficiency increase since 1980. An intermodal train can move one ton of freight roughly 830 miles on a single gallon – yes, just one gallon – of diesel fuel. Not to overwhelm you with more numbers, but another impressive fact: an intermodal train only emits 5.4 pounds of carbon emissions per every 100-ton miles, whereas a truck emits 19.8 pounds.
The hard numbers make it very clear that considering intermodal shipping is a wise choice – and I haven’t even mentioned the fact that it’s usually cheaper than truckload shipping!
There are a few key factors you should keep in mind that will determine whether you are a good candidate for intermodal shipping:
- Looking to save money on freight and shipping costs
- Have a sustainability program in place or otherwise looking to reduce carbon footprint
- Frequently ship long-distance (800 miles or more)
- Have flexibility to adjust to slightly longer transit times
If these apply to you, get in touch with us to explore switching some or all of your truckload freight to intermodal. The environment, and your shipping budget, will thank you!
“Intermodal,” in the broad sense, includes virtually all forms of transportation, but shipping by rail is one mode that offers the most benefits when time and “touch” are not essential requirements for your delivery. Touch, meaning how many times your shipment is physically handled en route.
What’s the difference?
With over-the-road trucks, your truckload shipment has fewer “moving parts” – less touch. Typically, you count on having one driver who drives from start to finish, who probably loads and unloads your goods (or at least assists or oversees the loading/unloading). This is also the same individual who serves as yours and your logistics service provider’s single point of contact.
When you ship by rail, a trucker (called a drayman) picks up the load, then in-gates the load to an intermodal facility where the container is separated from the Chassis (the under carriage, wheels, etc.) and then picked up by crane and mounted on a flat car.
The railroad then organizes, schedules, and sends your load to a destination facility. When the destination is reached, the container is again hoisted and re-mounted on a chassis, and the container is delivered by a trucker (another drayman).
There are lots of “touch points” or “moving parts” along the way. If one operating part breaks or fails to perform, all the other points/parts are affected.
Be aware that while railroad schedules are not always on time, they are generally consistent within a framework of given hour periods. To be safe in estimating delivery time, it’s usually best on the average to figure a day longer in transit than you might for an over-the-road truck.
The bottom line is:
1) Depending on your required points of origin and ultimate destination, shipping by rail is more economical in almost every instance.
2) Carbon emissions involved with rail transit are far fewer than those of over-the-road trucks, which means that rail shipping is a far greener and more environmentally sustainable method of shipping.
Trinity Logistics provides shippers with fully-informed, highly-experienced input on the details of whether intermodal shipping is in your best interests. They will help you analyze cost, time , and appropriateness for rail shipping options.
You will also get experienced guidance for gaining best pricing and delivery time arrangements with over-the-road trucks, or with a combination of the two methods. Contact our intermodal team today to learn more.
This is a question that many customers ponder on a daily and weekly basis. If you are a shipper or manufacturer utilizing intermodal (rail shipments) as a means of moving your freight, no doubt you already have a list of items that you consider when selecting the best intermodal logistics provider. Humor me and please keep reading anyway, I may possibly add one or two items that you haven’t considered in the past.
What’s an IMC?
First, let’s discuss what an “IMC” (Intermodal Marketing Company) is today versus what they were in years past. Many years ago when intermodal movements were just beginning on the railroads, the rail carriers quickly realized that it was very difficult for them to “retail” their service directly to potential customers. The railroads were accustomed to dealing with a shipping public with locations on their property with rail tracks running direct into their facilities! These were customers that moved grain, paper, lumber, steel, and automobiles as a few examples of the commodities that worked well for the rails. There was untapped opportunity for new shippers and manufacturers to move their freight by train, but they didn’t have to be located close to the railroad. In fact, many rail customers are several miles from the nearest railroad tracks.
IMCs (Intermodal Marketing Companies) started popping up around the country, providing marketing and sales for the railroads. Railroads readily accepted the IMCs’ help for marketing and selling their intermodal service! Originally the functions and responsibilities of an Intermodal Marketing Company were very limited. Over time those responsibilities have changed greatly to the point they not only provide sales, pricing, and marketing, but are also responsible in many cases for securing the container to move the load as well as the draymen to pick up the load at origin and destination. The Intermodal Marketing Company also provides one other key function today they didn’t provide in years past, and that is customer service.
The #1 Differentiator
Customer service is one function that truly differentiates one Intermodal Marketing Company from another. Some intermodal marketing companies have nearly eliminated the customer service function, relying heavily on cheap pricing to secure freight for shipping intermodal. I strongly recommend you consider customer service as a required function whether you’re renewing intermodal contracts, doing spot quotes, or just starting to move your freight by train. Let me paint a picture for you. There are only a few “Class I” railroads left in the United States and Canada, in fact only two Class 1 railroads in the West, only two in the East, and one in the Midwest. This means all of your intermodal freight will move on one of these five railroads and you’ll likely experience either good service the rail carriers provide, or you’ll suffer from issues the railroads are having. These include wash outs, derailments, hurricanes, mudslides, etc.
The element that separates the best Intermodal Marketing Company from the “less than best” Intermodal Marketing Company is how well they communicate the issues with you, the customer, and how that may affect your movement on a train. Many IMCs simply provide an online tracing tool, leaving it up to the customer to find out if any delays are going impact their shipment. Other IMCs will have automated faxes or emails broadcast to the shippers with very generic information about the issues. The “best” IMCs will create the type of communication you value. They will offer the online tracking combined with a personal touch and contact when you prefer it, letting you know about the issues that might affect your pick-up or delivery, and also offering alternatives when solutions are needed. They keep your freight and your best interests at the forefront of every conversation and interaction.
Asset Based or Non-Asset Based
Another consideration when selecting an IMC is to weigh the importance of being an intermodal asset owner or a non-asset owner? While this is an item that certainly differentiates the IMC’s, this element should not be one of your main deciding factors on which IMC you select. There are several excellent IMCs that move a lot of volume on trains do not possess intermodal equipment. Being an asset based Intermodal Marketing Company will provide only a small amount of leverage on pricing. I have heard many asset based carriers make the sales pitch that their company is better than company “XYZ” because they own assets, thus they have the ability to guarantee equipment for all shipments. The downside is the asset based IMC is more concerned about “turn times” or “trips per month” on their assets than they are about providing good customer service to you. The IMC without assets in most cases has access to just as many intermodal containers (in some cases even more), but if solely focused on your needs and serving the best interest of your shipment rather than their equipment. This is certainly an item that differentiates IMCs, but I feel it should be weighted very lightly when choosing the “best” intermodal marketing company for your needs.
All Aboard the Green Train
Issues are affecting our environment, the fact is not surprising anyone reading this blog. Chances are your company has even launched a “go green” initiative, whether it’s recycling office paper or joining the EPA’s Smartway Partnership. Moving your freight by train will result in a tremendous reduction in the carbon emissions into our atmosphere. When you are looking for the best intermodal provider, this is an item you should certainly consider. Are they a member of Smartway, do they have active programs in place to help the environment today and tomorrow?
Where Do You Rank?
Another element that certainly tells the story about an IMC is their current client base. Who do they currently do business with? Several IMCs tout that 80-85% of their volume and revenue comes from 10% of their customers. What this tells me is how much they like doing business with very large companies. Other IMCs prefer to do business with small to medium sized customers so their distribution of volume and revenues are spread over a much larger customer database. Typically the IMC catering to smaller clients has a natural knack for making the smallest customer feel just as important as their largest customer. Which type would you prefer to deal with? Who would you think values your business more?
Continuous Improvement
The final deciding factor on how to select your best intermodal marketing company involves the dreaded word “change”. There are many IMCs that are happy with the way things are now, while others are continually looking for ways to embrace change, either in processes or technologies. They’re doing this in order to improve how they are doing things for the betterment of the customers (for you)! I will certainly concede that change for the sake of change isn’t good, but change for improving service to the customer is something that differentiates a complacent intermodal provider from one striving to be the best.
It is my sincere hope that the list of items above will stimulate some thoughts for you the next time you need to move an intermodal shipment. No doubt you have noticed that I didn’t include much in my blog about price. Trust me, leave it on the bottom of your decision criteria and you will be able to select the best intermodal provider for your business needs without concentrating on price.
For more information on our intermodal division, connect with an expert today.