May 31 2018
Intermodal Services Trending Upwards in 2018
Companies are turning to intermodal services in an effort to reduce costs and better the environment.
The supply chain industry is rapidly changing and one of the most interesting trends is the use of intermodal services. Whereas a few years ago using a single freight service, like trucking, was the norm, the recent driver shortage and increased fuel prices has pushed companies to change their strategy.
The results have been nothing but positive. Intermodal services are being adopted by many within the industry because of its ability to cut costs and reduce negative effects on the environment.
There are a number of reasons for intermodal services’ successful impact on the supply chain industry, but here are just a few of the main reasons it’s being universally adopted.
Why It’s Working
Intermodal services are working because it’s utilizing every possible transportation method in order to save companies time and money. That means taking full advantage of sea, air, truck and train. Rather than submit to a rigid trucking schedule, or risk failing to reach clients on-time through sea freight alone, many within the industry are adopting a more balanced approach.
The main agent in this strategy is rail freight, which has proven to be more environmentally friendly. On average, trucks emit nearly 20 lbs of CO2 per 100-ton miles, whereas a train will only emit roughly 5 lbs over the same distance. In an age where companies are trying to be more eco-friendly, the benefits are hard to ignore.
Environmental benefits aside, intermodal services has a direct impact on cost and transportation efficiency. The primary reason being that less money is being invested in trucking services, which also means less drivers hired.
But the cost benefits go beyond that, as well:
1. Lower rates
2. Predictable pricing
3. Reduced handling costs
Transportation efficiency has skyrocketed for a number of reasons, too. While trucks remain useful within the industry, limiting their use has boosted on-time delivery and transportation security. Companies are no longer hampered by the inconsistent nature of highway transit. The odds of being slowed down by bad weather conditions is greatly reduced, there are less road accidents, you eliminate the slow process of going through border documentation, and increase chances of avoiding congested roads.
Other efficiency benefits include:
1. More reliable transit times
2. Reduced weekend stoppages
3. Reduced noise pollution
Transportation services are becoming more expensive every year, largely due to increased fuel costs, government regulations and increased customer demands. Therefore, adjusting your strategy and adopting an intermodal service approach, you’ll help combat these additional transportation costs. Creating a new strategy won’t be done overnight, but using intermodal services will help streamline your supply chain services by simplifying transportation.
Seldat Distribution Inc., provides innovative, scalable solutions and services that help companies in every link of the global supply chain grow and prosper. Our mission is to empower businesses and consumers worldwide to find, buy, and sell anything – without the limitation of borders and logistics challenges. Headquartered in South Plainfield, New Jersey, Seldat employs more than 2,200 people across North America, LATAM, EMEA, and APAC. To learn more, please visit www.seldatinc.com, www.tech.seldatinc.com, and www.oceanstarinc.com