Intermodal transportation: What is it and how does it work?

Moving freight over long distances typically involves more than one mode of transport. Intermodal shipping can be a game-changer for businesses looking for efficient and cost-friendly ways to move their goods. Here’s a breakdown of what it is and how it can help shippers.

Intermodal shipping: What, who, why?

What is intermodal shipping?

Intermodal shipping is a method of transporting goods using multiple modes of transportation to reach its final destination.

The cargo stays in the same container throughout the entire journey, even when switching between transport modalities — thanks to standardised shipping containers that comply with the International Organization for Standardization (ISO).

These containers are easily transferred between ships, barges, trains, and trucks, reducing loading and unloading times, minimising cargo damage, and enhancing security.

This process leverages the strengths of different transportation modes to achieve an efficient, cost-effective, and environmentally friendly transfer of goods. Since many shippers or consignees do not have direct rail or barge terminal access, often a combination of transport modes is used to leverage the strength of each one: e.g. rail combined (rail as the main leg and truck for final delivery) or barge combined with truck services.

Who uses intermodal shipping?

Companies that import and export goods rely on this method to move their cargo worldwide. Here are some examples:

• Manufacturers: They use intermodal shipping to transport raw materials to their factories or finished products to customers overseas.
• Retailers: Large retailers import a wide variety of goods from different countries. Intermodal shipping allows them to consolidate these shipments and move efficiently.
• Logistics companies: These firms specialise in coordinating the movement of goods on behalf of others. They often use intermodal shipping as part of their services once an ocean leg is involved or if specialised containers such as pallet-wide containers are deployed.

Why is intermodal transport used in supply chains?

Cost effectiveness: Intermodal shipping can be cheaper than relying solely on trucks, especially for long distances. Trains or inland waterway barges are generally more fuel efficient for long hauls, and ships can carry massive quantities of cargo across oceans very economically.

Enhanced efficiency: By keeping the cargo in its container, intermodal shipping reduces the need for unpacking and repacking at each transfer point. This saves time, labour, and minimises the risk of damage or loss. Containers are transferred from one mode of transport to the others by specialised container handling equipment.

Easy scalability: Intermodal shipping can accommodate large or small shipments, from one single 20-foot or 40-foot container to shipments consisting of multiple containers.

Safe and secure: The containers act as secure units, reducing the chances of theft or tampering with the goods. Container seals are deployed to ensure integrity.

Better for the environment: Once the container reaches the landside, the right selection of the modal split between inland waterways (barges), rail (trains) and road (truck) and combination of same can lead to lower greenhouse gas emissions (GHG).

Types of intermodal transportation: The five pillars

In international shipping, there are five main combinations of intermodal transportation linked to an ocean move:

Direct truck

This method combines ships for ocean transport with trucks for inland transportation. It’s a common choice for international shipping — when speed isn’t a major concern, but cost-effectiveness is desired.

READ MORE: Everything you need to know about drayage

Direct rail

It leverages trains for inland transportation and ships for overseas movement. It is a cost-effective solution for large cargo volumes travelling long distances internationally. Direct rail is only possible if the shipper/consignee is directly linked to a rail terminal or wants to receive the container in an inland depot / terminal that is rail connected.

Rail combined

Utilises the efficiency of trains for long hauls as with direct rail, but with the flexibility of trucks for initial pick-up and final delivery. This expands the geographical coverage as shippers/consignees do not need to have a rail access, the container is transferred from the rail head to the truck to make initial pick up or final delivery inlands.

Direct barge

Typically used to move goods between international seaports and inland terminals accessible by rivers, canals, and other inland waterways. It involves the use of large ocean vessels and smaller barges. It can only connect directly to shippers/consignees if they own a barge terminal as part of their factory set up.

Barge combined

Similar to rail combined, barge combined transport moves goods across various regions, including coastal and inland waterways, with initial pick up or final delivery via truck on road networks. It’s particularly useful for moving goods from coastal ports to inland waterway terminals and onwards to their final destination using trucks.

What’s the difference between intermodal and multimodal?

Intermodal and multimodal both involve using multiple transportation modes to move goods, but the key differences lie in contracting and whether the cargo is containerised:

Intermodal: Can be either single carrier (e.g. with Maersk) or multicarrier (on customer-managed different ocean carrier contracts but with Maersk responsible to manage and execute all inland transports on truck, rail, barge and combined). Cargo is generally in a shipping container that is transferred between different transport modes.

Multimodal: A single contract with a single carrier. Cargo is not necessarily in a shipping container, i.e. less-than-container load shipments.

At Maersk, we offer intermodal carrier haulage and intermodal multi-carrier solutions. Explore our intermodal services to move your containers between inland facilities and ocean ports.

Key factors for choosing intermodal transportation

While the core methods are there, several factors influence the choice, like:

Cost vs. speed

Cost-effectiveness: Intermodal shipping, especially combined services, shines for medium to long distances. Trains and ships offer great cost advantages over trucks for medium and long hauls. However, for shorter distances, the additional handling involved in intermodal transfers can negate the cost benefits.

Speed: While suitable for budgets, intermodal shipping in combined modes might not always be the fastest option, compared to direct truck. Transfers between modes and potential schedule variations can add to overall transit time. Consider the urgency of transportation and choose accordingly.

Cargo characteristics

Type of cargo: Intermodal is well suited for dry, bulk goods that can be containerised. Perishables, hazardous materials, or oversized cargo might require specialised handling or temperature control, and those conditions and specifications need to be checked and confirmed before confirming an intermodal move involving rail or barge.

Value of goods: For high-value cargo, the potential risk of delays or damage during transfers between modes might outweigh the cost savings. In such cases, air freight might be a better option despite the higher cost.

Route and infrastructure

Origin and destination: The distance between locations significantly impacts the decision. Intermodal shipping becomes more cost-effective over longer distances. Consider the total distance freight needs to travel to see if intermodal makes sense.

Available infrastructure: The efficiency of intermodal relies on well-maintained infrastructure. Limited rail networks, congested ports, and underdeveloped intermodal terminals can lead to disruptions and shipping delays. Research the availability and quality of infrastructure along your chosen route to decide the best option.

Operational needs

Delivery time requirements: If your cargo is time-sensitive, factor in both the schedule frequency as well as the transit time of the intended intermodal solution.

Tracking and visibility: Intermodal shipping requires robust tracking systems to monitor cargo movement across different modes and carriers. Ensure clear communication and information sharing throughout the journey

Ready to explore intermodal transportation services?

Did you know Maersk provides integrated intermodal services for your freight? We have high-quality transportation solutions combining truck, rail and barge. Explore our intermodal services to move your containers between inland facilities and ocean ports.