What is intermodal transport?

Last week, we shared the different types of picking so you can learn more about the fulfillment world. However, fulfillment is more than just picking and packing. It is the management of all the logistics processes that a company may need.  

 

Therefore, an important aspect of fulfillment centers is that they have to take care of the transportation of goods. That is why several strategies exist to gain time and money at this part of the distribution process. 

 

As a specialized fulfillment center in Mexico we have prepared this article to talk about the highly efficient method of intermodal transportation. This system capitalizes on the strengths of each transport method, optimizing cost, efficiency, and environmental impact. So, if you would like to learn more about it, we invite you to continue reading. 

What is intermodal transport?

First, intermodal transport refers to the movement of products using two or more modes of transportation (such as trucks, trains, ships, or airplanes) within a single journey without handling the cargo during mode transitions. 

 

This means that the merchandise remains in the same container or trailer throughout the entire process, making the transfer between modes more efficient and streamlined.

 

This system is widely used in global logistics because it enhances the speed, efficiency, and cost-effectiveness of moving products over long distances, especially in international trade. It also contributes to more sustainable transportation by optimizing routes and reducing fuel consumption and emissions.

Key characteristics of intermodal transport

1.- Multiple transportation modes

As the name says, multiple transportation modes combine the advantages of various methods, such as the long-distance efficiency of rail or ships with the flexibility of trucks for final delivery.

 

• Trucks are highly flexible and can reach areas other modes cannot, particularly for short-distance travel and last-mile delivery.

• Trains are ideal for moving large volumes of freight over long distances across land. They are energy-efficient and can carry a significant cargo, reducing transportation costs.

• Ships are excellent for international or cross-continental shipping, especially when moving large quantities of products. Maritime shipping is generally cost-effective for long-haul international transport.

• Airplanes are the fastest option, used for high-value goods or time-sensitive shipments, although they tend to be more expensive and less environmentally friendly than other modes.

2.- Seamless cargo transfer

One of the most important features of intermodal transport is that cargo remains in the same container or trailer throughout its journey, regardless of how often the mode of transport changes. This significantly improves the efficiency of the process by minimizing handling, reducing delays, and reducing costs. 

3.- Standardized containers

Intermodal transport heavily relies on the use of standardized shipping containers. These containers (typically 20-foot, 40-foot, or other sizes) are built to standardized dimensions to transfer between different transportation modes easily.

 

• Easy interchange: Standardization ensures that the same container can be seamlessly transferred from a truck to a train, from a train to a ship, or vice versa, without custom handling equipment.

• Global compatibility: These containers are designed to fit all types of transport worldwide, making it possible to move merchandise from one continent to another using different transport modes.

• Durability and security: Containers are built to protect products during long journeys, ensuring they can withstand harsh sea or rail transport conditions. They are also typically sealed, which provides security against theft or tampering.

Difference between intermodal and multimodal transport

Intermodal and multimodal transport are often used interchangeably but have distinct meanings in the logistics and transportation industry. Here's a breakdown of the key differences between the two:

 

1.- Core concept

As we mentioned, intermodal transport involves the use of two or more different modes of transport, such as trucks, trains, ships, or airplanes, to move goods from origin to destination. However, each journey segment is often handled by different carriers, with the cargo remaining in the same container throughout.  

 

On the other hand, multimodal transport also uses two or more transportation modes, but the entire journey is managed under a single contract or operator, known as the multimodal transport operator (MTO). This operator takes full responsibility for the entire shipment, coordinating different modes of transport while ensuring seamless transitions.

 

2.- Liability and insurance

With intermodal transport, liability is shared among the carriers involved. If damage or loss occurs, the carrier responsible for that specific journey segment must address the issue, which can sometimes result in disputes over where the damage occurred. 

 

In multimodal transport, the MTO assumes full liability for the entire journey. This means that they are accountable for ensuring the shipment arrives safely, regardless of the mode of transport used, simplifying the process for the shipper in case of any issues.

3.- Efficiency and coordination

They are both efficient methods of delivering goods. However, intermodal transport can sometimes face difficulties, as coordination between the various carriers involved may lead to longer waiting times during transitions from one mode to another. We need to remember that each carrier is focused on its segment, so the timing or communication between them may only sometimes be seamless. 

 

Multimodal transport, however, offers greater efficiency since the MTO coordinates the entire journey. With one operator managing the logistics chain, transitions between transport modes are better planned and more reliable, often leading to fewer delays and smoother operations.

4.- Flexibility

Intermodal transport provides greater flexibility, as shippers can choose different carriers for each mode of transport. This allows businesses to select the most cost-effective or reliable carriers for specific segments, offering more control over how their products are transported. 

 

In contrast, multimodal transport is less flexible in terms of carrier choice, the MTO selects the carriers for each mode. While this limits flexibility, it also simplifies the process for the shipper, who only has to deal with one contract and one operator.

 

Now that you've learned more about intermodal transportation tell us what modes of transportation you would select for your company. Also, if you find this article useful, share it on social media and stay tuned to our blog for more updates.