This post was last updated on Nov 13th, 2024
Intermodal transportation, a method that combines multiple modes of transport for a single shipment, offers a compelling blend of efficiency and cost-effectiveness. It has the potential to streamline global supply chains, reduce transportation costs, and minimize environmental impact. However, like any complex system, there are things that you won’t like about intermodal transportation as it comes with its own set of challenges and limitations.
In this blog post, we will delve into the potential drawbacks of intermodal transportation, particularly focusing on rail intermodal shipping. We will explore the trade-offs between efficiency and flexibility, environmental impact, and the overall cost-benefit analysis.
By the end of this post, you will have a clearer understanding of the factors to consider when deciding whether rail intermodal shipping is the right choice for your business.
Multimodal Transportation and Intermodal Transport Mode explained
Intermodal freight transport, which combines multiple modes of transit into a single journey, is critical to the delivery process. It enables accurate routing and reduces handling costs.
While only using one carrier can provide the most efficient transportation method while also reducing paperwork, sometimes it’s preferable to use several different transport carriers for optimum overall shipping cost but with greater logistic coordination work.
Multimodal Transportation is the term used to describe the transport of goods using two or more modes. The carriers involved in an intermodal transportation chain should be compatible with each other so that they can deliver items safely and efficiently together. While truckload freight companies are common partners for railroads, truck carriers are also linked with steamships to increase flexibility.
What are the disadvantages of intermodal transportation?
While intermodal transportation offers numerous advantages, it’s essential to know about its limitations. Here are 13 things you won’t like about intermodal transportation –
1. Speed
One of the main disadvantages of intermodal transportation is speed. Because intermodal transportation involves moving goods between different modes of transport, it can often take longer than if the goods were transported using only one mode. This is because each time the goods are transferred between modes, there is a risk of delays due to weather, traffic, or other problems.
In addition, intermodal transportation often requires specialised equipment, which can add to the time it takes to load and unload the goods.
2. Lack of reliability between intermodal service providers
In order for intermodal transportation to be successful, there needs to be a high level of reliability between the various service providers. Unfortunately, this is often not the case.
Service providers may be unable to provide the promised level of service, or they may not have the necessary equipment available when it is needed. As a result, intermodal transportation can be less reliable than other methods of transportation, which can lead to delays and additional costs.
In order to improve the reliability of intermodal transportation, service providers need to work together to invest in better coordination and communication.
3. High infrastructure costs
Higher infrastructure costs often cause higher service rates for companies that use intermodal transportation. This is especially true when the use of cranes or other heavy-duty equipment is required to move full-load containers.
Intermodal containers have lowered costs and made it easier for shippers to transport their products by standardizing how they’re packaged, but require they are handled by industrial-sized cranes which could be scarce outside major port cities.
4. The complexity of the intermodal operation
Intermodal transportation is a complex system with many moving parts and without proper service design parameters in place, can become a messy process to clean up afterward.
5. Delivery frequency and intermodal transportation timeliness
Intermodal carriers tend to be less frequent than other types of freight carriers like ground and air. This can cause transportation problems if a customer’s demand is not able to keep up with the limitations of intermodal shipments.
However, with a little planning, a lack of timeliness and urgency can save in the long run.
6. Cargo handling of restricted or prohibited products
Some items are either not allowed to be shipped via intermodal transportation or can only be transported if they’re taken apart and reassembled once reaching their destination.
This makes shipping of hazardous materials difficult, as well as some raw building materials that need to be processed prior to being used on the construction site.
7. Damage during the intermodal shipping process
In most cases, damage can be avoided with proper loading and handling procedures. These procedures can be very difficult to manage in container shipping because of the lack of communication between railcar, yard worker, and truck driver.
Building strong partnerships with the right people is crucial for a successful freight transportation process. When you work together, your shipment will be delivered on time and in good condition!
The best way to minimize risk among all parties involved? Starts by having an engaged intermodal solutions team behind the scenes who knows what they’re doing.
At RailGateway we’ll make sure that everything goes as planned throughout this complex but critical intermodal shipping journey. From origin through to the final destination so that not only are deadlines met, but also customer expectations.
Intermodal transport benefits can often be outweighed by its disadvantages when it comes to damage during the freight shipping process. With the correct logistics company on your side, a single point of contact can help to ensure that everything goes as planned and your freight is delivered on time.
If this sounds like what you’re looking for, contact RailGateway today to get a rail quote today to learn more about how we can help you save.
8. Grievous goods transportation within Canada (environmental hazards)
It’s important to understand that not all dangerous goods are prohibited for transport via road or rail. The rules regarding what hazardous products are allowed vary depending on whether they are transported by highway, rail, or both transport modes.
A product may be allowed for transport as an exception (that means the shipper fills out documentation and seeks permission) if it fits within a series of conditions:
1. The product, although dangerous, has been packaged correctly by the manufacturer;
2. The gross mass of all dangerous products shipped is less than 330 lbs (150kg)
3. It is permitted for transport by other modes of transportation.
4. The dangerous goods being transported are in a quantity or concentration available to the general public.
The two main organizations that regulate the transport of hazardous materials are Transport Canada and the U.S Department of Transportation.
These organizations publish a number of regulations that must be followed in order to safely transport dangerous goods between jurisdictions.
9. Seasonal weather, traffic, congestion, and other environmental factors
Intermodal transportation receives a lot of attention because of concerns about road congestion and traffic safety.
And because infrastructure capacity is limited, traffic flow disruptions (such as collisions, congestion, or road maintenance) might result in delays and complications in any transportation strategy.
Rail infrastructure is becoming increasingly important as the preferred alternative for shipping goods between locations, especially those that require intermodal transport.
It’s easy to see why: trains can move heavy and oversized cargo that would otherwise be unsafe on roads; rail networks are less susceptible to environmental factors such as rain or snow than roadways and they often go through areas that are under-served by road infrastructure.
10. Limited options for smaller shipments
For smaller or LTL (less than truckload) shipments, options for working with an intermodal service provider may be limited.
The smaller the shipment, the less likely it will be that an Intermodal provider will have a candidate to move it. It may require multiple stops, making delivery times more lengthy than FTL options.
However, providers are working hard to provide customers with more flexible service offerings – which is good news for those who need flexibility.
11. Port congestion
Port congestion is a big concern for freight shipping and international trade. Container ships floating waiting for port access, and threats of driver strikes, are all too common in an industry under huge strain due to increased transport costs and a global pandemic.
To improve on this, some providers are offering more innovative transport options, including Intermodal transfers within the port environment itself to maximize terminal space and decongest intermodal container yards.
12. Interference with other modes of transport
Because of their size, Intermodal trains take up a lot of room.
As Intermodal traffic increases, it creates more logistical complexity with railways having to navigate around Intermodal trains on shared lines.
Since Intermodal is so effective at moving goods quickly, this may cause interruptions of other rail services. This can have a negative impact on commercial operations that are reliant on the logistics industry for their deliveries.
13. Concerns about Intermodal service quality
The Intermodal transportation industry could be seen as a price-competitive market; carriers tend to focus on low prices and lower margins in order to win business and stay competitive.
The challenge for Intermodal customers has been positive customer perception and confidence in Intermodal transport delivery standards without negatively impacting cost savings or price competitiveness.
Through innovation in technology, Intermodal carriers have been working hard to raise the customer service standards of Intermodal transportation.
Pros of Intermodal Transport
Benefits of intermodal freight shipping
There are three major benefits to an intermodal shipment. And the first and foremost is the cost savings.
A further added benefit is sustainability. This is because when one mode of transportation such as rail or ship malfunctions, the other mode will be able to act as backup, thereby reducing any possible damage done to goods.
For a complete list of benefits visit our post ‘Getting Started with Intermodal Transport: The 7 Benefits Beyond What You’ve Heard‘
The Importance of Intermodal Transportation
Besides low transportation costs, fuel efficiency, and the positive environmental impact that rail transportation and intermodal transportation services offer, planning and executing large-scale projects is also a huge plus when considering intermodal shipping.
In 2019, the Canadian rail industry carried more than 332 million tonnes of freight and assisted in the delivery of $205 billion worth of Canadian products to markets all around North America and throughout the world through a network of intermodal terminals (rail, ship, and truck).
With some of the most competitive rail transportation costs in the world, Canadian businesses (and as a happy side-effect, consumers) saved billions of dollars with intermodal freight transportation.
Multimodal Transportation and Intermodal Transport Mode explained
Intermodal freight transport, which combines multiple modes of transit into a single journey, is critical to the delivery process. It enables accurate routing and reduces handling costs.
While only using one carrier can provide the most efficient transportation method while also reducing paperwork, sometimes it’s preferable to use several different transport carriers for optimum overall shipping cost but with greater logistic coordination work.
Multimodal Transportation is the term used to describe the transport of goods using two or more modes. The carriers involved in an intermodal transportation chain should be compatible with each other so that they can deliver items safely and efficiently together. While truckload freight companies are common partners for railroads, truck carriers are also linked with steamships to increase flexibility.
How to Choose the Right Mode of Transport for Your Needs
Intermodal shipping has always been a difficult decision to make. You have to take into account the pros and cons of all transportation modes, including road freight transport, rail, river transportation, and airfreight.
Factors you need to take into account when making the choice between intermodal shipping logistics companies are:
– Availability of raw materials for various modes of transportation.
– Economical properties, fuel efficiency, modal systems of each mode.
– Geographical access of all intermodal providers.
– Security of cargo during the transportation process.
– Ease of logistics.
When making the choice to switch to intermodal freight shipping or rail freight shipping, you need to take into account all the factors above and compare them with the benefits offered by each model.
Before switching to using intermodal freight shipping or rail freight shipping, your company must have a good understanding of the financial aspects of using each model.
For example, if you ship commercially sensitive or high-value shipments that need to be transported quickly, then air freight transport might be best for your business due to its ability to move products at high speeds.
If you’re shipping large quantities of goods, then it might be better for your business to use intermodal rail shipping due to its large capacity which can provide significant savings.
Another important factor when choosing between intermodal shipping and rail freight transportation is the security aspect of transporting your goods.
If your company needs high-security transport, then modes such as sea or road transport might be better than modes such as air transport, where security can sometimes be compromised.
Switching to using intermodal freight shipping or rail freight shipping could benefit your business in many ways.
When should you consider using rail freight for shipping your products across Canada?
Rail freight services are utilized by a wide range of clients and transport a diverse variety of items and commodities. Power generating companies, construction companies, retailers, and fruit wholesalers are all frequent users of rail freight services.
Railways play a strategic role in Canada’s economy and are the most efficient and dependable form of transportation, moving 70% of the nation’s surface goods.
The railways are an important part of Canada’s history and were instrumental in the growth and development of the country. Canada’s geography makes the railways an invaluable resource for moving cargo from one part of the country to another and especially over long distances.
Curious if making the switch to rail is right for your business? Contact one of our RailGateway intermodal shipping experts today for more information on how rail can help reduce costs.
The shipping industry continues to baffle the average consumer. There are so many modes of transportation which makes it hard to determine what mode will be the most cost-efficient, economical, and safe.
Conclusion
While intermodal shipping has many good things. It is very important to know its downsides too. By understanding these 13 things you won’t like about intermodal transportation. Businesses can make smart choices about how to move their goods from one place to another.
Things like problems with the roads/rails and possible delays becaus of it can affect how well intermodal shipping works. It is important to think about your specific needs and choose the best way to move your products beforehand.
By considering these 13 downsides, you can avoid problems and improve your supply chain. If you’re looking into intermodal shipping, work with experts in logistics to create a plan that’s affordable, efficient, and good for the environment.
And if you are looking to save on your domestic intermodal shipping across Canada? At RailGateway we have unbeatable rates just for you. So Request a quote today to see just how much we can help you save!
