This post was last updated on December May 21st, 2025
In today’s highly competitive and environmentally conscious global economy, businesses must be both lean and strategic in every aspect of their operations. One key area where top-performing organizations are gaining a distinct competitive edge is in how they move their goods. Enter intermodal transportation – a method that combines the strength of multiple transportation modes, such as rail, truck, and ocean, to deliver more cost-effective, sustainable, and scalable shipping solutions.
So, when should you consider switching to intermodal transportation? The answer depends on a mix of factors, including the type of cargo you ship, the distance it travels, your need for cost-efficiency, and your sustainability goals. Companies that consistently ship more than 300 miles (500 km), require cross-border logistics, or deal with seasonal or high-volume freight are among those that benefit the most from intermodal transportation in 2025.
Intermodal transportation is no longer just for large, multinational enterprises. Today, small and mid-sized companies in sectors like e-commerce, manufacturing, agriculture, and retail are increasingly turning to intermodal strategies to cut costs and increase delivery reliability. The rise of intermodal hubs, smart logistics platforms, and real-time container tracking makes this method more accessible than ever before.
One of the most compelling reasons to use intermodal transportation in 2025 is its alignment with sustainability objectives. With stricter emissions regulations and a growing consumer demand for green practices, intermodal – especially rail shipping – offers a significantly lower carbon footprint compared to long-haul trucking. Rail transport produces 75% fewer greenhouse gas emissions than trucks, making it a smart environmental choice without sacrificing efficiency.
Beyond sustainability, cost-efficiency is another reason companies are adopting intermodal strategies. By shifting long-haul portions of the journey to rail, which is typically cheaper per ton-mile, shippers can cut transport costs significantly. Meanwhile, trucks are still used for first and last-mile delivery, offering flexibility where it matters most.
Consider the case of a major Canadian grocery chain that shifted a significant portion of its inbound freight from long-haul trucks to intermodal transportation. By leveraging rail networks between Vancouver and Toronto and utilizing refrigerated containers for perishable goods, the company slashed transportation costs by 18% while improving delivery timelines. Similarly, a U.S.-based electronics distributor with high-volume, cross-border shipments now saves over $500,000 annually by using rail for the core legs of their routes.
The timing to use intermodal is critical. If you’re experiencing the following conditions, it might be the right time to make the switch:
- You’re moving freight over 500 km regularly.
- Your transport costs are rising faster than revenue.
- Your clients are demanding sustainability reporting.
- You’re experiencing delays with long-haul trucking.
- You’re expanding into new domestic or cross-border markets.
Another increasingly popular use case for intermodal transportation in 2025 is during peak season planning. E-commerce giants and retail chains use intermodal to manage inventory overflow, shipping to fulfillment centers via rail while avoiding highway congestion. It also helps stabilize fuel costs since rail prices are less volatile compared to trucking.
Technological advances have made intermodal more transparent and manageable than ever before. Modern Transportation Management Systems (TMS), API integrations with rail and drayage providers, and satellite-based tracking enable shippers to maintain visibility across the entire route. This transparency helps businesses reduce risks and respond quickly to delays or changes.
Ultimately, choosing intermodal transportation isn’t just about moving goods; it’s about transforming your supply chain into a smarter, more agile system. From reduced fuel costs and emissions to enhanced inventory control and strategic growth, intermodal shipping allows businesses to optimize operations in ways that pure trucking or ocean alone simply can’t match.
In this guide, we’ll look at real examples of companies succeeding with intermodal transportation, explain the signs that it may be time for your business to consider the shift, and provide insight into how this evolving mode is shaping the future of logistics.
What is Intermodal Shipping?
Intermodal transportation is the service of shipping goods from one place to another using a combination of rail transport, air cargo, trucking, or waterway.
To do so, the cargo is loaded into intermodal containers once and for all for the full trip. Unlike multimodal transportation, those containers are the ones that will be transferred to the different transportation modes. Cargo handling is then way reduced, making it safer and cheaper.
In the logistics industry, intermodal transportation is known to be a more consistent service and a cost-effective, fuel-efficient way of moving freight while being environmentally responsible all at the same time.
According to the IANA (Intermodal Association of North America), 95% of all manufactured goods spend some portion of their shipment in an intermodal container.
The main benefits of Intermodal transfers:
– Cheaper transportation costs compared with other forms of shipping;
– Being more environmentally friendly with fewer emissions, reduced carbon footprint through fuel efficiency compared to other actors of the shipping industry such as trucking companies;
– Saving time, allowing for faster deliveries and better service to customers by having everything consolidated under one carrier;
– Ease in switching transport modes thanks to intermodal containers, reducing the risk of cargo damage during shipment.
Read this blog post on the blog to learn more about intermodal transport advantages.
4 Industries That Use Intermodal Transportation and Why
- Manufacturing
- Construction
- Foodservice providers
- Retail and e-commerce
1) Manufacturing Companies
Manufacturing companies are among the top intermodal transport users.
Intermodal transport as a method of shipment is very advantageous for manufacturing companies because it allows them to meet large-scale demand more quickly.
Indeed, most of their freight is large, bulky, and difficult to move by traditional means because of its size or weight. Plus, manufacturers usually need to move their goods on time, and intermodal transportation is the perfect solution.
Logistics companies that offer intermodal freight shipping services will pick up and deliver their heavy and oversized cargo using two or more modes of transportation without cargo handling in between, allowing the transportation process for manufacturers to be way easier.
2) Construction Companies
Next up are construction companies.
One common problem that arises when dealing with heavy machinery is getting it from one place on-site to another without causing damage or injury to people, the equipment itself, or the surrounding site.
This is where intermodal freight transport services come in handy for construction companies because they use special standardized containers that can be double-stacked for maximum efficiency for high-volume shipments that are easily accessible by forklift trucks and cranes.
Construction companies will also find intermodal transportation beneficial when shipping equipment overseas.
3) Foodservice providers
Foodservice providers play a vital role in intermodal transportation.
For example, one of the most common companies that use intermodal freight transportation is Starbucks Coffee.
It’s estimated that around 65 to 70 percent of Starbucks’ supply chain operating expenses were tied to intermodal freight transportation.
Retailers in the food industry can save 15%-20% on costs by using intermodal providers.
And if you’re running an e-commerce business, it’s likely your company will also benefit significantly through intermodal transport as well!
4) Retailers and e-commerce companies
One final group that’s benefited from intermodal transportation is retailers and online merchants.
The intermodal freight transport system has opened up new opportunities for online stores to expand their markets, allowing them to reach customers around the country with lower costs.
Retail businesses rely on manufacturers to deliver their goods to the final destination to sell out onto store shelves and online where end consumers can purchase them.
Without getting these goods quickly, they’d have nothing but empty shelves inside their establishments. Because of this, intermodal transportation benefits retailers largely through a reliable capacity to grow and scale.
When to Use Intermodal Transportation: 5 Reasons Why It’s Time to Make the Switch
It’s best to switch to intermodal transportation when your business has a few key things going for it.
For intermodal transportation to be a viable option, your business should:
1. You ship a large amount of cargo
Businesses that ship large amounts of goods or require items regularly are the first ones that can benefit from intermodal freight shipping consolidation.
Why? Because intermodal transport could prove cheaper and more efficient than other methods.
It offers less handling time which means more savings in labour costs. When sending large quantities of goods either on domestic shipping or for international trade, the many pallets or lose freight handling costs can add up quite quickly!
2. Have oversized or heavy freight that’s difficult to move by traditional means
Another group of businesses that can significantly benefit from intermodal transportation is those with oversized and heavy freight that’s difficult to move by traditional means.
You might find yourself in a bind when it comes time to transport these goods. But no more with intermodal transportation!
If your business is in the automotive, construction, or even heavy-machinery industry, you might want to consider intermodal providers to put an end to those transportation problems.
3. Ship long distances
For companies with a growing demand for shipping both domestically and internationally, intermodal freight transportation can be a great option.
If your business is shipping products over long distances, using intermodal as a mode of moving freight will save you time and money.
Why? This is because there are fewer steps along the way, and plus, with rail service being part of the mix, you can optimize shipping time. Forget about truck drivers’ breaks every two hours or congestion while driving by an important city. Intermodal rail can make your full supply chain faster for the long haul of your shipments.
Note: To ensure that you’re not paying too much in brokerage fees on your shipments, consult an intermodal shipping provider.
4. Have a strong understanding of its shipping needs and requirements
Before consulting with an intermodal service provider, you should have a strong understanding of your shipping volumes, schedules, delivery times, and what your business needs are.
This will allow intermodal transportation providers to provide an accurate quote for your intermodal shipments.
Businesses that are starting to ship intermodal need an intermodal shipping provider they can trust.
A good intermodal transportation company will take the time to understand your business, its goals, and objectives so it can provide you with a solution for all of your intermodal needs.
5. Be able to make the commitment in terms of time and money for intermodal transport services
Businesses that want to invest in intermodal for their shipping strategy should be willing to spend some time investigating the offers on the market, the available providers, the common routes and rail services, the infrastructure in place etc.
Why? Because negotiation will be mandatory. If you don’t know what you are talking about, that would make things a lot more complicated.
This is where intermodal service providers are advantageous because they have agreements with carriers that allow them to provide you with the best services and rates on intermodal transport.
It might not always be easy to have a dedicated team internally responsible for overseeing intermodal shipments. This is why partnering with an externalized team or an intermodal provider can definitely help you.
Partner with the #1 intermodal rail transport provider in Canada
An investment for future transportation costs’ savings
Investing in dedicated support to oversee your intermodal transits is not always realistic.
Instead of taking on additional overhead, companies should instead partner with a dedicated intermodal freight shipping service provider.
By providing accurate shipment information about contents, weight, and dimensions, intermodal transport providers can offer support in supply chain management in ensuring shipments arrive safely to their final destination.
RailGateway, the intermodal rail reference in Canada
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We’ll work with you to do whatever it takes to speed up shipment times and lower shipping costs.
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If your business meets these requirements, then it’s time to consider intermodal transportation.
Intermodal service has been offering more than just economic benefits such as lower costs and faster delivery.
And while intermodal transportation is not for every business, it does have its advantages when used correctly – with the right intermodal shipping provider, you and your business can save valuable time and money!
Are you looking to make the switch to full-load rail transport? Contact one of our experts for your free intermodal rail quote today.
Conclusion
After exploring the powerful benefits and practical applications of intermodal transportation, the question isn’t whether you should adopt it – but rather how soon you can start. In 2025, this shipping strategy stands out as one of the most versatile, scalable, and future-forward approaches for businesses looking to thrive in an unpredictable logistics landscape.
Companies that have embraced intermodal transportation report not only cost reductions but also improved service levels and better sustainability reporting. This trifecta of benefits is driving widespread adoption among enterprises seeking to elevate their logistics operations. Whether it’s reducing road congestion risks, ensuring cargo safety, or meeting environmental targets, intermodal offers the flexibility to meet these diverse demands with ease.
Let’s not forget the sheer scalability of intermodal freight. Whether you’re a startup shipping seasonal goods or a multinational enterprise handling thousands of containers monthly, intermodal transportation can grow with you. With a combination of scheduled rail routes and flexible trucking options, it offers unmatched adaptability across geographies and market demands.
Companies like Amazon, Walmart, Loblaws, and Canadian Tire already use intermodal systems to streamline their supply chains. Their success stories serve as a playbook for other businesses that aim to achieve similar operational efficiencies. If you want to mirror that level of logistical excellence, adopting intermodal could be your most important next step.
Still unsure? Here are five final questions to ask yourself:
- Are your shipping costs eroding profit margins?
- Is long-haul trucking increasingly unreliable or hard to source?
- Are your customers demanding faster, greener, or more consistent delivery timelines?
- Do you lack visibility and control over multi-leg shipments?
- Are competitors gaining ground through logistics innovations?
If you answered yes to any of these, intermodal transportation deserves your immediate attention. It’s not only a fix for current inefficiencies but a future-ready strategy that positions you to handle whatever the evolving marketplace throws your way.
Investing in intermodal partnerships, optimizing container usage, and training logistics staff on multi-modal planning are great first steps. You don’t need to overhaul your entire supply chain overnight. Start small – perhaps with a few routes or high-volume SKUs – and scale as you gather performance data and build internal expertise.
Collaboration is key. Engage your 3PL providers, rail carriers, and intermodal marketing companies (IMCs) early in the planning process. Leverage their experience to structure contracts, plan load capacities, and understand scheduling nuances. Their insights can help you avoid common pitfalls and hit your efficiency goals faster.
By now, it should be clear that intermodal transportation isn’t just a shipping alternative – it’s a long-term business enabler. As the logistics world becomes more integrated, tech-driven, and eco-conscious, your supply chain must evolve accordingly. Choosing intermodal today sets you up for success tomorrow.
In conclusion, if you’re aiming to improve shipping reliability, cut operational costs, and lead in sustainability, the time to explore intermodal transportation is now. With the right strategy and partners, intermodal isn’t just the smart choice – it’s the future of efficient logistics. Don’t get left behind. Make the switch in 2025 and watch your business move forward faster, smarter, and greener than ever before.
How We Can Help
For businesses looking to optimize their freight shipping with reliable, efficient, and cost-effective solutions, RailGateway.ca is your trusted partner in intermodal logistics. Whether you’re new to freight trains or want to enhance your existing supply chain, our team of intermodal experts is ready to guide you every step of the way.
Contact RailGateway.ca today for a free quote or to speak directly with one of our experienced intermodal specialists. Let us help you unlock smarter, smoother shipping solutions tailored to your unique needs.
Visit RailGateway.ca or call us to get started on transforming your freight shipping strategy in 2025 and beyond.
