The chemical industry faces challenges such as volatile raw material prices, shortages, supply chain disruption, and more.
The chemicals industry is one of the most important sectors, with 96 percent of all manufactured goods depending on them. With many moving parts and various stakeholders involved in the chemical supply chain, there are several challenges this industry faces. Here are some of the biggest challenges affecting the chemical industry.
CHEMICAL INDUSTRY CHALLENGES
- Managing Raw Materials
- Transportation Disruptions
- Regulations
- Large Amounts of Data
- Complex Supply Chains
- Lack of Visibility
- Climate Change Pressure
MANAGING RAW MATERIALS
The chemical industry, specifically chemical manufacturing, relies heavily on raw materials. Raw material prices, such as those for crude oil, are volatile and can fluctuate at any given time. This can make it difficult to forecast costs and budget and, keep prices competitive.
Keeping an adequate supply of these materials can be an additional challenge. Having too much inventory can potentially lead to chemical waste or spoilage while too little can make it difficult to meet customer demand.
TRANSPORTATION DISRUPTIONS
Chemical industry supply chains can be long and complex. They have many moving parts, making the transportation of chemical products a challenge. If you add in transportation disruptions, it makes it even more problematic.
While transportation disruptions usually occur at some point, in recent years, there’s been a lot of supply chain disruption caused by the onset of Covid-19.
According to a survey by the American Chemistry Council, 97 percent of companies reported having to change to their operations due to supply chain issues in recent years. Because of this, the chemical industry must stay on the tip of its toes and be able to adapt quickly whenever disruption may happen.
Also, global supply chains see the most impact from transportation disruptions. The chemical industry has more global supply chains than other industries, making this challenge more difficult.
REGULATIONS
Chemical products are often specialized and need specific storage and handling. In addition, they face strict regulations on the transport of their products, especially hazardous materials. These regulations are necessary to have in place to protect the environment and people.
In recent years, several high-profile incidents have involved the release of hazardous chemicals into the environment. This has caused governments to introduce more strict regulations. As a result, this has increased the costs for chemical companies to operate. It’s been estimated that chemical companies will have to spend more than $300 billion over the next few years to meet regulations.
The chemical industry must be more vigilant than ever to remain compliant. These increased regulations put more pressure on chemical companies already trying to meet global standards.
The chemical industry has to work with many different regulations and agencies, such as;
- Environmental Protection Agency (EPA),
- Food and Drug Administration (FDA),
- Good Manufacturing Practices (GMP),
- Occupational Safety and Health Administration (OSHA),
- and Registration, Evaluation, Authorization, and Restriction of Chemicals (REACH).
LARGE AMOUNTS OF DATA
The chemical industry handles a lot of data. All manufacturing and operational data must be recorded, categorized, and processed. It’s estimated that chemical companies handle up to;
- 50,000 data points per raw material,
- 100 samples per test,
- 10,000 pieces of equipment per plant,
- 150 data points per customer!
This massive amount of data can be a challenge, especially with supply chain management.
COMPLEX SUPPLY CHAINS
The chemical industry is a complex one. It can include various kinds of chemical processes with products in all forms, from raw to intermediate, to finished goods. There are also many stakeholders involved, from chemical manufacturers to distributors.
Additionally, chemical products are often required to have very specific characteristics with little to no room for variations. Chemical companies also handle more complex items, like hazmat or temperature-controlled. Chemical supply chains are often worldwide, making them much more complex than other industries.
LACK OF VISIBILITY
Due to its complexity, lack of visibility can be a challenge for chemical supply chains. It can be difficult for chemical suppliers to know their inventory levels or how products are being used. Therefore, it’s important for chemical companies to have an accurate picture of their inventory and supply chain. Improved visibility can provide insight into opportunities to reduce costs without sacrificing quality.
CLIMATE CHANGE
The chemical industry is one of the top contributors to global carbon emissions. As the world becomes more concerned about climate change and sustainability, there’s more pressure added onto chemical companies that already face strict regulations.
There’s also a growing demand from consumers for more green and ethical products. For example, many companies are having to find alternative solutions for plastic or use recycled materials.
To keep up with the ever-changing market and demand, chemical companies need to change their processes. They must find ways to create less waste and more products that help reduce their environmental impact.
Also, as the planet warms, more severe weather is taking place. This is causing more disruptions to chemical industry processes. Whether causing a halt in transportation or a shortage of oil, climate change presents several challenges for the chemical industry.
OVERCOMING CHEMICAL INDUSTRY CHALLENGES
The chemical industry can be a tough market to compete in. To overcome these challenges, chemical companies need to remain resilient and competitive. As the world and market continue to change, they need to be able to adapt.
Finding like-minded, expert partners with applicable technology is ideal to overcome these challenges. A third-party logistics (3PL) company, like Trinity Logistics, is one such resource.
Trinity Logistics has been in business for over 40 years and has worked with chemical companies of all sizes. Trinity is a trusted partner to help chemical companies better navigate their complex supply chains. We’re well-versed in the chemical industry and can help find a quality carrier for your shipment or offer improved visibility through our customized technology solutions.
When choosing to work with Trinity, our Team Member experts keep you up to date on industry news, upcoming regulation changes, or any other relevant information your business needs to stay successful.
Additionally, we’re a Responsible Care certified partner, meaning we’re committed to providing you with the best service for your logistics and transportation management while staying committed to sustainability practices.
At Trinity Logistics, we’re not your typical 3PL. We’re invested in your business and are here to help your business succeed. If you’re looking for a like-minded logistics partner to help you overcome some of your industry’s challenges, we’re here and ready to help.
SEE HOW TRINITY CAN HELP YOUR CHEMICAL BUSINESSInbound Logistics has named Trinity Logistics as a Green Supply Chain Partner of 2022.
Inbound Logistics selected 75 honorees that “walk the walk” when it comes to commitment to supply chain sustainability and given the global environment this year, Trinity Logistics is very honored to have been selected.
Sustainability is something Trinity has always taken very seriously. Since 2008, Trinity Logistics has participated in the Environmental Protection Agency’s (EPA) SmartWay Program to reduce greenhouse gas emissions and air pollution that is caused by freight transportation. Trinity has also been partners with American Chemistry Council’s Responsible Care since 2009, which involves staying committed to improving company performance through community awareness, security, distribution, and pollution prevention.
With one of Trinity’s Guiding Values being Continuous Improvement, the company knows there is always room for improvement, even in sustainability efforts. That’s why Trinity recently become a Carbonfree Partner with Carbon Fund.
The Carbonfund.org Foundation is a non-profit that works with its partners to help them become “carbon-neutral” by donating funds to offset their emissions. Donated funds go toward third-party validated projects that comply with United Nations Sustainable Development Goals. With the help of Carbonfund.org, Trinity was able to calculate electricity usage in its corporate Delaware location and donate funds to the Carbonfund.org Foundation to offset the company’s own emissions by planting trees and funds sent to the Texas Capricorn Ridge Wind Project. Thanks to the Carbonfund.org Foundation, Trinity was able to offset 143 tonnes of carbon emissions.
Additionally, Trinity is working with the EPA and Carbonfund.org Foundation to create a calculated way that our shipper customers can donate to offset their shipment’s emissions and make a difference as well.
“As many companies shift focus to clean energy and reducing carbon footprints, Trinity is excited for our new partnership with the Carbonfund.org Foundation and our continued partnerships with American Chemistry Council’s Responsible Care Management System and EPA’s SmartWay Program to support our customer efforts in going green,” says Kristin Deno, Director of Operational Risk at Trinity.
Trinity is grateful to be recognized for its continued sustainability efforts. Trinity stays determined to find and implement impactful ways to help combat climate change and hopefully soon, can offer more ways for shipper customers to make a direct impact too.
Learn how Trinity Logistics can support your business. Stay in the know. Join our mailing list.About Trinity Logistics
Trinity Logistics is a Burris Logistics Company, offering People-Centric Freight Solutions®. Our mission is to deliver creative logistics solutions through a mix of human ingenuity and innovative technology, enriching the lives of those we serve.
For the past 40 years, we’ve been arranging freight for businesses of all sizes in truckload, less-than-truckload (LTL), warehousing, intermodal, drayage, expedited, international, and technology solutions.
We are currently recognized on Transport Topics’ Top 100 Freight Brokerage List, a Top 3PL and Cold Storage Provider by Food Logistics, and a Top Company for Women to Work for in Transportation by Women in Trucking.
The chemical industry faces complexities every day. From safety regulations to handling and shipping these products, making, and delivering chemicals is no easy task. One of the significant challenges facing the chemical industry today is the pressure for sustainability. With climate change in the spotlight, consumers are taking notice, and sustainability is molding the chemical industry.
Changing the Old Ways
While safety, service, and costs are still important aspects of the chemical industry, sustainability is becoming an important detail. The industry faces pressure from activists, lawmakers, and the public to become more sustainable to help battle climate change.
A big issue arising for the chemical industry is that most people have trouble putting the words “green” with “chemicals.” This idea is something progressive, and future chemists are trying to help the industry adapt.
And while it’s not ideal to pay more money for creating products, it’s the path we’re headed. Studies show that more than three-quarters of consumers are willing to change their shopping habits to reduce their own carbon footprint. Additionally, more than one-third are willing to spend more money on products that help with sustainability.
Sustainability Issues within the Chemical Industry
With over 881 million tons of chemicals transported in previous years, this industry is growing and on the rise. Yet, with its growth comes an increase of challenges on the chemical industry to meet sustainability goals.
One major goal for sustainability is reducing one’s carbon footprint in the world. For the chemical industry, abiding by modern environmental standards like replacing petroleum-based combustion engines with electronic vehicles, or manufacturing with plant-based materials over oil-based, can help achieve carbon reduction. However, the chemical industry has several issues to resolve to meet this goal.
One of those issues is plastic. Over one-third of the plastic we use is single-use, meaning that after one use of a water bottle, zip lock bag, or straw, for example, these items are thrown away. The “Plastic Waste Markers Index,” published by the Minderoo Foundation, calculated that energy and chemical companies are the sources of half of the world’s single-use plastic waste. Single-use plastic accounts for most of the waste harming marine life and seeping into land when burned. This issue is not taken lightly. Many lawmakers and activists are acting to introduce a new form of recyclable and reusable plastic.
Major oil spills in recent years have become a rising issue as well. One major oil spill was the Exxon Valdez off the coast of Alaska in 1989, with over eleven million gallons of oil spilled in the ocean. Some more recent ones were the True Oil pipeline in 2020, the tanker truck rollover in 2020, and more.
Finding Sustainable Solutions
The chemical industry is working hard to find new solutions to be more sustainable. One of the significant changes being made is reducing the rise of fossil fuels.
The use of hybrid or electric vehicles has been on the rise, and we’ve seen significant sales growth for these types of vehicles. People are turning away from pumping gasoline to plug their cars into an electric outlet. While these electric vehicles are not yet popular in the trucking industry, many companies are working to build new electronic trucks. Not to mention, President Biden’s recent executive order aimed at making half of all new vehicles (including semitrailers) sold in 2030 electric.
Fossil fuels also play a part in plastics. Single-use plastics are made from polymers, with their base material from fossil fuels. As companies strive to reduce their plastic use or manufacturing, it simultaneously reduces fossil fuel use.
However, with new rules to reduce single-use plastic items, the logistics field will need to find new sustainable ways to package shipments. Currently, products are packaged and shipped in some sort of plastic.
Although these seem like small changes that one person can easily make, the companies that use or manufacture these products face major changes to their business. As severe weather and climate change continue to be front and center worldwide, chemical companies feel the pressure to make these changes towards sustainability.
We’re Here to Help You
Sustainability affects all practices for the chemical industry, including their logistics. Here at Trinity, we’re here to help you reach your logistics goals, including those on sustainability. We offer several modes of transportation, including intermodal, which can reduce your carbon footprint. Our Team of experts can help recommend customized solutions like freight consolidation as another way to be more sustainable with your freight transportation. Or you can consider using technology, like our best-in-class transportation management system, to gain efficiencies and data-driven insights into your logistics, which can also help you with sustainability in your logistics.
We know sustainability practices are necessary for every business. This is why we take pride in our efforts and are proud of our earned recognition as both an SDCE Green Supply Chain Award winner and as a Food Logistics Top Green Provider.
If you’ve been looking for a like-minded logistics partner to reach your goals, we’re here and ready to help.
See how we can help you with sustainability in your logistics.Author: Turner Lee
Interruptions to the cold chain create problems such as spoilage, changes in the appearance, taste, or smell of a product, growth of harmful bacteria, or lost potency. Preventing any interruption of the cold chain is one of the main responsibilities of a logistics manager. Let’s look at some of the significant cold chain challenges you may have to face, and how you can keep issues at bay.
REGULATIONS
Regulations for the cold chain are ever-changing and complex, which is why they are one of the major challenges faced today. If your cold chain is worldwide, it can be more complicated as there is no one entity to regulate on a global scale. Each region has its own regulations, compliance mandates, and enforcement agencies. Some examples of these are:
U.S. Food and Drug Administration (FDA)
In the U.S., the federal regulatory agency for food and pharmaceuticals is the FDA.
Most cold chain food regulations come from the FDA’s Food Safety Modernization Act (FSMA) of 2017. This regulation covers the cleanliness and function of equipment, protocols set in place for transportation, employee training on the proper handling of food in cold chains, and records of all FSMA compliance.
When it comes to pharmaceutical products, many regulations affect the cold chain. Some of those include:
- 21 CFR 203.32
- Addresses the need for maintaining drugs under stable conditions and meeting manufacturer’s specifications.
- 21 CFR 211.150
- Provides guidance on the written procedures for managing expirations and a reliable system for identifying the distribution of drug samples in the event of a recall.
- 21 CFR 203.36
- Outlines the responsibilities of manufacturers and authorized distributors.
- 21 CFR 205.50
- Minimum requirements for storage and handling of prescription drugs and maintenance of distribution records
Canadian Food and Drugs Act
In Canada, the regulatory authority is the Government of Canada. The Canadian Food and Drugs Act was passed in 1920 and revised in 1985. It regards the production, import, export, and transport across provinces for food, drugs, and cosmetics including products like soap and toothpaste. It ensures products are safe, ingredients disclosed, and drugs are effective.
International Conference on Harmonization of Technical Requirements for Registration of Pharmaceuticals for Human Use (ICH)
Many other countries, refer to ICH guidelines gathering data on a product’s safety and efficacy to establish a cold chain strategy. ICH brings together many regulatory authorities to discuss data and establish those guidelines. Gathered data is used to consider the duration of temperature excursions that can occur across distribution channels.
Regulations can be complex and demanding at times, but they all have the same goals of retaining the safety, quality, transparency, and efficacy of cold chain commodities. The biggest key to keeping compliance with cold chain regulations is increasing end-to-end visibility in your cold chain. Keeping proper documentation of data throughout your supply chain can seem difficult but modern technology like a transportation management system (TMS), can simplify this cold chain challenge. Current technology applications like GPS tracking, ELD data, Internet of Things (IoT), and a TMS can give you advanced analytics and reporting that would otherwise be comprised of manual processes. Not only does technology offer you savings in time but of human error as many processes become automated.
SUSTAINABILITY
Another significant cold chain challenge is the increasing spotlight on sustainability. The distribution and transportation of temperature-controlled products have shown to be major causes of greenhouse gas emissions. In comparison to other supply chain transportation, cold chain transport consumes 20 percent more fuel than other heavy vehicle types due to the refrigeration equipment. The biggest issue facing sustainability is the high-power consumption or combustion of fossil fuels necessary to power the cold chain’s cooling systems.
There are also growing issues and increasing regulations on refrigerant gases used in cooling systems like hydrofluorocarbons (HFCs) as they are responsible for high greenhouse gas emissions. In 2015, the European Union set strict limits on the production and sale of high global warming potential HFC refrigerants. In the U.S., the Manufacturing Act of 2019 was passed which established a timeline of phasing down the use of HFCs by 2036.
Because of the increasing pressure of sustainability and its regulations enacted on the cold chain, many large food and pharmaceutical companies have plans in place to reduce their carbon emissions. In 2015, more than 150 businesses in the U.S. signed the Business Act on Climate Pledge which launched for private sector businesses to express their support on international action on climate change. Also, in 2015, the Paris Agreement was created, signed by 195 countries at the United Nations climate change summit. This agreement aims to reduce greenhouse gas emissions to prevent the planet from warming by more than 2 degrees Celsius.
Being sustainable in the cold chain is also something you can be recognized for now with awards such as the Supply & Demand Chain Executive Green Supply Chain Award or the Council of Supply Chain Management Professionals’ Supply Chain Sustainability Award. Some ways to consider in adding sustainability to your cold chain is improving your cold chain management to reduce waste and your carbon footprint or considering alternative transportation modes like intermodal versus truckload when shipping your products. While you’re working on improving sustainability in your cold chain, make sure the providers you work with are equally interested in sustainability as well. Here at Trinity, we are proud of our sustainability efforts and to be recognized as a SDCE Green Supply Chain Award winner and as a Food Logistics’ Top Green Provider.
TEMPERATURE VARIANCES
It’s one of the biggest and most common cold chain challenges: maintaining the required temperature of the product throughout the entire supply chain. Any temperature that is higher than the set temperature can affect a product’s quality. Not all products that get exposed to a temperature past their threshold will spoil right away, as it depends on how steep and frequent the exposure was. Once a product has begun to thaw, it is considered contaminated. Depending on the product and temperature, that window of time can be very short. There are many times during cold chain in which a product can be exposed to a temperature variance: during unloading and loading of the product, from poor packaging, handling, or broken equipment.
Loading and Unloading
As your product moves through the cold chain, it can get exposed to temperatures outside its set temp. Whenever loading and unloading your product, handling should be as quick as possible. Preventing prolonged exposure to temperature changes prevents having problems with quality.
Poor packaging or handling
There are many different ways to package your cold chain freight so it can keep its cool. If it’s not done right or in mind of your transit time, your goods can spoil before arrival. When handled poorly, they can become damaged, causing lost product.
Equipment problems
One way the cold chain can be interrupted is when your equipment breaks down. Refrigeration equipment can malfunction due to damage, inadequate maintenance, or losing power.
In cold storage, doors becoming damaged are one of the common challenges they face. When cold storage doors become damaged, they can’t maintain their specified temperatures.
Due to inadequate maintenance, there can be a buildup of condensation in coolers and freezers, causing slippery surfaces and unsafe conditions for workers, as well as a spoiled product. Another maintenance challenge is handling the growth of mold or mildew, which can happen with poorly maintained temperatures. Should this happen, the freezer will need to be cleaned thoroughly and inspected for any problems.
Transportation Breaks Down
Vehicles can break down at any time. Any hold-up in your cold chain shipment could mean more than just a time delay, it can mean a spoiled product. Make sure you’re working with a qualified carrier who inspects their truck or other modes of freight before the journey begins.
Keeping track of the temperature throughout your cold chain is another way to combat having your products exposed to changes in temperature. Temperature monitoring systems are quickly replacing any manual processes of collecting temperature information, saving time, and preventing spoiled products. This also allows cold chain managers insight into their problem areas and being able to fix them.
Some of these temperature monitoring systems are RFID or wireless sensor network, thermal imaging, and temperature loggers. RFID or other wireless sensor networks are the most common in the cold chain. These sensors capture the location and temperature, communicating the information back to a database and allowing parameters like an estimated shelf life to be calculated. You’ll often find these in warehousing and cold storage. Thermal imaging is exactly what you think it is; imaging that is taken showing the different temperatures of everything in the photo. Thermal imaging uses a sensor to convert the radiation given off at different temperatures into a visible light picture. This is also often used in warehousing and cold storage. Lastly, temperature loggers are another type of sensor placed next to cargo in transportation. They can be set to record as frequently as every second, minute, or hour. Once removed, they can be plugged into a computer so the temperature data can be transferred and analyzed.
TEMPERATURE-CONTROLLED SHIPPING CAPACITY
Another significant cold chain challenge is available capacity. Capacity is always a challenge for any industry, but even more so for the cold chain, especially right now. With freight in high demand across all industries and capacity slim, drivers can pick and choose what shipments they want to take based on (already) high rates. Reefer trailers are already limited with the increased demand on cold chain, but when rates for moving other high-demand commodities such as lumber or retail keep increasing, those drivers can choose to utilize their reefer trailer as a dry van to haul should those rates be better paying, further reducing cold chain capacity. Cold storage warehousing is seeing the strain as well because of the growing freight demand. More storage space is needed in the supply chain and new buildings are being built, but those currently in production or needing their building supplies (which are also in high demand), puts yet another strain on shipping capacity until that demand has decreased. With the cold chain demand increasing and available equipment and drivers doing quite the opposite, can the logistics sector keep up? Read more in our current whitepaper.
DON’T LET THE COLD CHAIN SCARE YOU
There is a lot of juggling to do when managing the cold chain. If even one ball is dropped, it can affect the whole cold chain. You can prepare as best as you can for these cold chain challenges, but sometimes it’s nice to know you have backup when you need it most.
Luckily here at Trinity, we’re experts in complex situations. In fact, I would say it’s our specialty. We’ve seen every possible problem there could be and are happy to help. By working with Trinity, you can gain access to the data you need to improve your performance and output, find equipment and capacity when you’re finding it difficult, and work with someone who understands current regulations, no matter the region or type of commodity you work with. We’re here to have your back regardless of what cold chain challenge comes your way.
Simplify your cold chain challenges.Not ready to request a quote? Subscribe to our YouTube channel and watch our latest State of the Industry and Freight Market Update videos to stay on top of what’s going on in cold chain.
Author: Christine Morris
This year, Trinity Logistics was named one of Food Logistics’ Top Green Providers. Food Logistics’ annual awards program showcases individual and corporate leaders in the food and beverage industry. The Top Green Provider award recognizes companies whose products, services, or exemplary leadership enhances sustainability within the cold food and beverage industry.
“Everyone has a role to play when it comes to sustainability, and Trinity has always taken theirs very seriously,” said Sarah Ruffcorn, President of Trinity Logistics. “We are honored to receive this award in consideration of our initiatives towards something so important. Our recognition as a Top Green Provider for 2021 is yet another reason why we are proud to be Trinity Logistics.”
We are honored to be noticed as a company with environmental, economic, and ethical sustainability practices. Going green is something that is very important to us. Since 2008, Trinity Logistics has participated in the Environmental Protection Agency’s SmartWay Program. This program sets initiatives to reduce greenhouse gas emissions and air pollution that is caused by freight transportation. We have been partners with Responsible Care® since 2009. This partnership is committed to improving company performance through community awareness, security, distribution, and pollution prevention. Additionally, one of Trinity’s Guiding Values is integrity. We do the right thing. We are grateful for this award and will continue to uphold our sustainability initiatives to help keep our carbon footprint low.
Supply & Demand Chain Executive, the only magazine in the supply chain industry covering the entire global supply chain, has selected Trinity Logistics as a recipient of the SDCE Green Supply Chain Award for 2020.
The Green Supply Chain Award recognizes companies making green or sustainability a core part of their supply chain strategy and are working to achieve measurable sustainability goals within their own operations and supply chains. The award also recognizes providers of supply chain solutions and services assisting their customers in achieving measurable sustainability goals.
“This year’s 13th-annual award recognizes small, mid-size and large enterprises that leveraged green practices and solutions to further drive sustainable improvements in their supply chain,” says Marina Mayer, editor-in-chief of Supply & Demand Chain Executive and Food Logistics.
“From software solutions to transportation management systems to several other initiatives designed to reduce carbon footprint and improve the re-use of materials, sustainability continues to rank as a key component to a stronger, safer and more efficient supply chain.”
Some of the initiatives that landed Trinity’s award are our SmartWay partnership program, Responsible Care Partnership, and offering intermodal as a mode for freight transportation.
Since 2008, Trinity has proudly participated in the Environmental Protection Agency’s SmartWay program, a federal initiative to reduce greenhouse gas emissions and air pollution that is created by freight transportation.
Since 2009, Trinity has been a part of the Responsible Care Partnership with a commitment to not only ensure the safe arrangement of chemical shipments, but improve company performance through community awareness, security, distribution, employee health and safety, pollution prevention, and process and product safety.
At Trinity, we have an entire Team dedicated to arranging intermodal or rail shipments. We often encourage our customers this alternative and more eco-friendly mode of freight transportation whenever possible.
Trinity Logistics is honored to receive the Green Supply Chain Award for 2020, making it another reason we are proud to be a part of Team Trinity. We realize the transportation industry holds a heavy responsibility in our planet’s health and look forward to continuing our commitment to our sustainability initiatives while keeping our company’s carbon footprint low.
Request A QuoteAccording 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!