Intermodal transportation continues to grow as an efficient, cost-effective, and sustainable alternative to truckload shipping. However, many shippers hesitate to use intermodal because they don’t fully understand how the operational components work—from rail transitions to terminal procedures and equipment management.
This guide provides a comprehensive look at intermodal operations, explaining how shipments move between railroads, what happens at intermodal terminals, and how shippers can optimize their supply chains using intermodal transportation.
Intermodal shipments often require transitions between different railroads to complete a long-haul move across the railroad North America network. These transitions occur at:
Railroads use two types of interchanges to transfer containers between networks:
Definition: A steel-wheeled interchange keeps the container on a railcar as it moves from one railroad to another. The entire railcar is transferred, avoiding the need for drayage between terminals - making for a seamless rail to rail transition.
Where It Happens:
Advantages:
Disadvantages:
Definition: A rubber-tired interchange requires a drayage truck to move the container between two rail terminals before continuing the journey on rail.
Where It Happens:
Advantages:
Disadvantages:
Whenever possible, shippers should prioritize steel-wheeled interchanges to minimize costs, avoid delays, and improve transit reliability. At the U.S.-Mexico and U.S.-Canada borders, steel-wheeled interchanges eliminate long truck lines, making intermodal a superior cross-border shipping option.
At intermodal terminals, containers are either stacked (grounded) or placed on chassis (wheeled) before delivery.
Shippers should factor in terminal operations when scheduling pickups and managing supply chain efficiency.
Chassis shortages can impact intermodal shipments, so knowing whether the ramp has pooled chassis or requires privately owned equipment is critical.
These are primarily used for 53-foot containers and are simpler to manage. Companies like DCLI provide chassis for Class 1 railroads and other domestic freight movements.
Used for 20-, 40-, and 45-foot international containers, also known as ISO containers, these pools are more complex due to varying rules, contracts, and agreements between steamship lines and intermodal equipment providers (IEPs).
Balancing Supply and Demand: Ensuring that chassis are available where and when needed requires constant coordination between depots, rail terminals, and ports.
Migration Penalties: Moving a chassis outside its designated pool or market can incur fees, as this disrupts the balance needed to serve all customers effectively.
Accessorial Charges: Additional costs, such as split charges or repositioning fees, arise when chassis need to be retrieved or returned to specific locations.
53’ Domestic Containers – Primarily used for shipments within North America, offering a reliable and standardized intermodal solution.
40’ International Containers – Designed for import/export freight, but also utilized for domestic shipments at significantly lower costs. Steamship lines often provide incentives to reposition these containers with paying freight rather than moving them empty back to port.
Refrigerated Containers – Specialized for temperature-sensitive freight, ensuring proper climate control throughout transit.
Unlike truckload shipments, which typically carry $100K in cargo coverage, intermodal shipments generally offer $250K in cargo coverage. However, it’s crucial not to assume coverage limits—always verify with your Intermodal Marketing Company (IMC) before finalizing pricing and loading freight.
Additionally, when shipping into Mexico, cargo insurance risk falls entirely on the shipper. If your IMC provides no coverage, consider purchasing additional cargo insurance or be prepared to assume the risk.
Unlike truckload brokerage, where fraudulent carriers and brokers are a major risk, intermodal eliminates these concerns through strict security measures:
UIIA Agreement (Uniform Intermodal Interchange & Facilities Access Agreement)
With these protections, intermodal shippers avoid fraudulent double brokering and unauthorized carrier handling, a problem that plagues the truckload market.
Shippers who understand how intermodal operates can take advantage of its cost savings, reliability, and efficiency. Steel-wheeled interchanges, strict fraud prevention, and structured terminal operations make intermodal a superior supply chain solution in many cases.
Want to optimize your intermodal logistics? Contact InTek Intermodal today to explore how we can help.
For more insights on intermodal logistics, subscribe to the Intermodal Logistics Podcast. Whether you're a seasoned logistics professional or new to the industry, understanding the intricacies of chassis management will enhance your ability to navigate the ever-evolving world of intermodal shipping.
Our team is here to guide you through the benefits and 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.