INTERMODAL: A SMART WAY TO SHIP (AND SAVE)
6 TRY A HYBRID APPROACH. Using intermodal for some shipments helps to ensure access to another mode of transportation when capacity tightens on the truckload side. “It’s good to have another arrow in your quiver,” says Ben Enriquez, chief executive of cer with Transport Capacity Services. 7 DECIDE WHETHER TO GO IT ALONE OR WORK WITH A LOGISTICS PROVIDER. Many companies outsource their intermodal function because logistics providers have invested heavily in the technology needed to manage the shipments and are experienced in negotiating contracts, Burch eld says. In addition, the providers that consolidate freight likely are doing it across a volume that’s greater than a small shipper would have, giving them more power to negotiate, she adds. GPS vs CLM As visibility to intermodal shipments has become more critical, so has the debate surrounding GPS and CLM, or car location messages. A CLM is initiated by a reported rail event that happens at an Automated Equipment Identification scanner or is entered by a rail crew or clerk, says TransmetriQ. The CLM provides data showing, for instance, that a car or container received a certain event type, at this place, at this time, on this railroad with this loaded or empty status. From an equipment-tracing perspective, a GPS “ping” by itself is a point in space, says TransmetriQ. When a shipment is moving, GPS provides up-to-date information about its location and speed. But when a shipment stops moving, GPS cannot provide information on whether the equipment has, for example, been held for some reason or been placed at its final destination. “Someday GPS will tell you all of that,” says Andy Adams, senior solutions engineer, TransmetriQ. For now, he recommends using both solutions to obtain the best understanding of the location of a shipment.
8 OWN THE OUTCOME. Whether you invest in your own intermodal processes and technology, or work with a service provider, you need to be able to anticipate potential changes, and then pivot and be exible and resilient should they occur. “When you have multiple carriers, every handoff is an opportunity for a failed execution,” Burch eld says. “You have to know what you’re going to do if a failure happens.” It’s also important to understand what external shocks could impact your intermodal shipments. CONTINUED GROWTH EXPECTED Intermodal volume rose by 8.5% in 2024, according to IANA, and more growth is still likely. Industry estimates show that about 10 million over-the-road shipments each year meet the criteria for intermodal, as they’re typically 750 miles or longer, Davis says. Several factors are driving growth. Nearshoring is one, as Mexico traditionally has been underserved from an intermodal standpoint. “As
more organizations locate there, they’re providing opportunities,” Baumgardt says. Technology solutions that offer greater visibility and control also are boosting the intermodal market. “Customers want carriers that quickly pivot and provide multimodal solutions,” Baumgardt adds. As companies trying to avoid the congestion at Los Angeles and Long Beach look to other ports, such as those in the southeastern U.S., many may also consider intermodal to move their goods inland, Burch eld says. Ecommerce, along with revolutionizing how people purchase, is also driving intermodal growth. Sustainability is another catalyst, Burch eld says. Many companies have set carbon reduction goals, and intermodal can help in reaching them. Enhancements to intermodal service and improvements in technology, visibility, and tracking are also driving the market. “These technology improvements combined with service enhancements are propelling the industry forward for a promising future,” Harrington says. n
A seamless transfer of intermodal containers highlights the eciency of global supply chains that can move freight reliably from port to destination.
30 Inbound Logistics • October 2025
Powered by FlippingBook