Intermodal transportation, which combines different modes of transport like rail and truck, offers several benefits. It can create jobs in industries that depend on shipping goods and is a cost-effective and efficient way to move products across Canada and even to the United States.
However, the cons of intermodal transportation can be a deciding factor on whether to get or not get their services. While trains are generally better for the environment than other modes of transport, they’re less flexible because they can only follow fixed railroad tracks.
In this blog post, we’ll discuss the drawbacks of intermodal freight transportation and explore when rail intermodal shipping might be a good choice. Let’s get started.
What Is Intermodal Transportation? Is it same as Multimodal?
Intermodal transportation is a smart way to move products using different types of transport, like trains, trucks, and ships. To make this work, the containers used must follow specific size rules so that goods can stay in the same container the whole way.
Intermodal transportation is different from multimodal transportation. With intermodal, shippers work with different companies, each responsible for their own part of the transportation. But with multimodal transportation, there’s only one company in charge of the whole journey.
The Importance of Intermodal Transportation
Intermodal transportation, combining multiple modes of transport, offers several strategic benefits beyond its lower costs, fuel efficiency, and positive environmental impact. It is particularly advantageous for large-scale projects due to its ability to handle significant volumes of goods efficiently.
In 2019, the Canadian rail industry showcased its capacity by transporting over 332 million tonnes of shipments. This remarkable achievement facilitated the delivery of $205 billion worth of Canadian products to markets throughout North America and around the world. The extensive network of intermodal terminals played a crucial role in enabling this seamless flow of goods.
The competitive rail transportation costs in Canada have provided substantial savings for both Canadian businesses and consumers. By utilizing intermodal transportation, businesses have been able to reduce their logistics expenses, leading to increased profitability. This, in turn, has benefited consumers through lower prices for goods and services.
Disadvantages of Intermodal Transportation
Intermodal transportations is not all Rainbows and sunshines. It has some common issues with it, which are –
Operational Challenges and Efficiency
- Speed and Efficiency:
Intermodal transportation, while offering potential cost savings, can be slower than single-mode transport due to transfer times and handling procedures. Optimizing these processes is crucial for improving efficiency.
- Reliability and Coordination:
Ensuring consistent service quality and effective coordination among different service providers is essential for reliable intermodal transportation. Implementing advanced tracking systems and communication protocols can enhance reliability.
- Infrastructure Costs and Equipment:
The need for specialized equipment, such as cranes and container terminals, can increase infrastructure costs. Investing in efficient equipment and infrastructure can help reduce costs and improve handling times.
- Cargo Handling and Restrictions:
Careful handling procedures and compliance with regulations for various cargo types, including hazardous materials, are crucial to prevent damage and ensure safety.
- Port Congestion and Terminal Operations:
Addressing port congestion and optimizing terminal operations is vital for efficient intermodal transport. Implementing innovative solutions like on-port transfers and improving port infrastructure can help alleviate congestion.
Market Factors and Customer Experience
- Delivery Frequency and Flexibility:
Intermodal carriers often have less frequent schedules compared to other modes, limiting options for time-sensitive shipments. Expanding service offerings and improving flexibility can better meet customer needs.
- Customer Experience and Quality:
The focus on competitive pricing in the intermodal market can sometimes lead to concerns about service quality. Investing in customer service initiatives and improving communication can enhance the overall customer experience.
- Market Dynamics and Competition:
Understanding market trends and competitive factors is essential for intermodal carriers to remain competitive and attract customers. Adapting to market changes and offering innovative solutions can help differentiate carriers.
- Technological Advancements:
Embracing technological advancements, such as digitalization and automation, can improve efficiency, reduce costs, and enhance the customer experience.
- Environmental Impact and Sustainability:
Addressing environmental concerns and promoting sustainable practices is becoming increasingly important in the transportation industry. Intermodal transportation can contribute to sustainability goals by reducing emissions and improving fuel efficiency.
Should You Consider Using Intermodal Transportation For Shipping Your Products Across Canada?
Rail intermodal services are used by many different types of businesses and transport a wide variety of goods. Companies that make electricity, build things, sell products, and sell fruits and vegetables are all common users of rail intermodal services.
Railways are very important to Canada’s economy. They are the most efficient and reliable way to transport 70% of the goods that are moved on the surface of the land in Canada.
Railways have been a part of Canada’s history for a long time. They helped Canada grow and develop. Canada’s large size makes railways very useful for moving cargo from one place to another, especially over long distances.
If you are thinking about using rail for your business, contact our RailGateway intermodal shipping experts today to learn more about how rail can help you save money.
The shipping industry can be confusing for the average person. There are many different ways to transport goods, which makes it difficult to decide which way is the most cost-effective, economical, and safe.
Conclusion
While intermodal transportation offers certain advantages, such as fuel efficiency and environmental benefits, it’s important to note that the cost savings may not be as substantial as commonly perceived. Although there are short-term fuel cost reductions, the expenses associated with building and maintaining railroad infrastructure can offset these savings.
Shippers must carefully select intermodal motor carriers with expertise in working with railroad operations. Understanding weight limits, loading procedures, beneficial ownership requirements, and documentation handling is crucial for a successful intermodal transportation experience.
Don’t let complex shipping logistics hold your business back. Contact us for expert guidance and solutions in intermodal transportation!
FAQ’s
What Are The Negative Effects Of Intermodal Transportation?
Intermodal transportation, while offering potential cost savings, can be slower than single-mode transport due to the transfer of goods between different modes. This can increase the risk of delays caused by factors such as weather, traffic congestion, or other unforeseen circumstances.
