Sustainability is a growing conversation in freight logistics, with companies making bold commitments to reduce emissions and operate greener supply chains. However, when it comes to awarding freight contracts, sustainability often takes a backseat to other priorities - making it more of a tagline in a mission statement than a supply chain strategy.
Shippers want to reduce their carbon footprint, but they also need to keep transportation costs low and ensure consistent on-time delivery. That makes finding a way to integrate sustainability without sacrificing efficiency or increasing operational expenses a challenge.
The good news is that shippers can take practical steps today to balance sustainability, cost, and service— without waiting for future technologies like electric trucks to become widely available (a wait that may only get longer). Here’s how.
Before making changes for change's sake, it's important to establish a baseline. Benchmarking the carbon impact of all freight activities helps a company measure its current emissions and energy usage and identify where to get the most bang for the buck in making improvements.
Example:
A shipper moving freight from Chicago to Los Angeles analyzes their emissions and discovers that switching from long-haul truckload to intermodal could cut their carbon footprint by up to 50%.
Takeaway:
Without measuring your carbon footprint, you can’t optimize it, so start by benchmarking where you stand today.
Shippers concerned about cost and service reliability often hesitate to fully commit to intermodal shipping, but the sustainability (and other) benefits are worth pursuing. Instead of making a complete shift, a pilot program allows companies to test intermodal on long-haul lanes to evaluate performance before expanding further.
Example:
A company shipping electronics from Dallas to Chicago tests intermodal for 30 days and finds that transit time is consistent, cost is 20% lower than truckload, and service meets expectations. They expand intermodal to additional lanes based on the results.
Takeaway:
Starting a small intermodal pilot on good intermodal lanes allows shippers to test the waters before making a larger commitment.
Not all intermodal providers prioritize sustainability. The right intermodal marketing company (IMC) will help optimize routes, rail capacity and carrier selection to cut emissions while maintaining cost and service reliability.
Example:
A beverage company looking to reduce emissions and reduce its freight cost from its supply chain partnered with InTek to optimize its routes. By using a small box domestic intermodal solution they were able to leverage the efficiencies found on the rail, cut emissions, and reduced their freight costs by 10 percent.
Takeaway:
Partnering with the right IMC can help you balance sustainability, cost, and service—without trade-offs.
One reason sustainability doesn’t drive freight decisions is that many requests for proposals (RFPs) focus solely on cost and service metrics, without factoring in carbon emissions. By including sustainability as a weighted decision factor, shippers can incentivize carriers and logistics providers to prioritize greener solutions.
Example:
A manufacturer issues an RFP for cross-border U.S.-Mexico shipments and includes a 10% weight on sustainability efforts. The winning provider offers a rail-based solution that lowers costs and emissions, benefiting both parties.
Takeaway:
If sustainability isn’t measured in RFPs, it won’t be prioritized—so build it into the bid process.
The federal government and many state governments offer grants, tax credits and incentives to encourage sustainable freight transportation. Many shippers aren’t aware of these opportunities, leaving money on the table.
Example:
A logistics company applies for a state-level green freight grant to fund infrastructure upgrades for cleaner drayage operations at intermodal terminals, reducing emissions without increasing costs.
Takeaway:
Shippers can offset sustainability costs by tapping into available government incentives.
Many shippers assume that prioritizing sustainability means higher costs or reduced service reliability, but that’s not always the case. By taking strategic steps, shippers can reduce emissions while maintaining efficiency and keeping freight costs competitive.
Key Takeaways:
Sustainability in freight doesn’t have to be a future goal. It can be implemented today with the right strategy.
Want to cut costs and reduce emissions without sacrificing service? Contact InTek Intermodal today to explore your options.
Our team is here to help you make the best choice for your logistics needs. We'll work with you on flexible solutions that fit you best. For more information about InTek, or logistics and supply chain issues in general, check out our Freight Guides.