How Intermodal Freight Transportation Helps in Reducing Logistics Costs
Given the fast-paced and fiercely competitive corporate market today, cutting down resources while ensuring proficiency has become an obligatory course of action for players. The intermodal freight shipping is one of the best ways that companies have thought of, to achieve these expectations. They allow goods to be transferred over a long distance through a variety of means in one streamlined process, i.e., truck, train, and sea, all in pursuit of the same cost-dependent spirit of the 21st century.
Understanding Intermodal Freight Shipping
Intermodal transportationrefers to a technique for moving cargo across long distances using two or more modes of transportation in which the goods are transported in the same container from one medium of transportation to the next without being handled and replaced. Because of efficient handling, the containers are simply transferred from truck to ship to train, and therefore, containerized shipping is quick and efficient.
How Intermodal Shipping Reduces Logistics Costs
1. Lower fuel and transportation costs
In terms of fuel efficiency on long distances, even with a comparison between trucking and trains, trains tend to consume less fuel. Thus, companies that incorporate rail into their intermodal freight shippingstrategy, therefore, stand to enjoy significant reductions in fuel expenditures.
2. Reduced labor and handling costs
With intermodal transportation, the same unit of freight remains inside the same container from start to destination, avoiding any extra handling at transfer points that add cost to the operation. This further not only saves on-mode handling labor costs but also reduces the risk of damage, which could result in expensive claims and delays.
3. Reducing Congestive Delays
Public highway congestion causes delays, leading to extra fuel consumption and associated costs. By absorbing intermodal transportation within their supply chain, most companies are more likely to bypass congested highways with the help of integrated rail transport. Intermodal transportation facilitates smoother and quicker receipt of goods while avoiding additional expenses.
4. Streamlining Fleet Operation
A company solely relying on trucking transportation is vulnerable to fluctuating availability levels of fleet capacities and frequent instances of driver shortages, causing an age of contention and re-escalating operation costs. Intermodal freight transportation, in turn, offers companies a chance to optimize their logistics network by utilizing standard trucking practices alongside rail and sea transportation.
5. Sustainability Incentives and Compliance
Most city authorities offer financial incentives to businesses using green supply chain solutions. Intermodal shipping not only holds great potential for reducing carbon emissions but also offers an added advantage in the form of greater financials in terms of tax breaks, indirect support, less direct regulation, or some other forms of lower regulatory expense.
Is Intermodal Shipping Right for Your Business?
If your business regularly ships goods over vast distances, borrows high costs for trucking, or desires a sustainable logistics strategy, then intermodal freight shipping solutions make a compelling proposition.
KCH Transportation exclusively deals with intermodal shipping to streamline the supply chain activities of all firms at a reduced cost. Call us today to learn more about our intermodal solutions and how they could impact your operations!
