Shippers moving full-truckload freight over 500 miles are increasingly turning to intermodal rail for access to additional capacity and as a way to reduce transportation costs and carbon emissions.
Benefits of converting freight from the highway to intermodal rail include:
As over-the-road capacity tightens in specific markets, use of intermodal rail can help shippers diversify modal options and gain access to additional capacity. By double stacking containers, an intermodal train can transport the equivalent of 280 truckloads. The efficiencies of double-stacked rail transportation provide shippers a scalable shipping solution that can flex to meet seasonal surges as well as changes in demand.
Transportation costs comprise 65% of total U.S. logistic expenditures, according to the Council of Supply Chain Management Professionals 27th Annual State of Logistics report. The efficiencies and cost-saving benefits of intermodal rail can help shippers reduce transportation costs, giving them an opportunity to make a meaningful contribution to their organization’s bottom line and achieve transportation cost-reduction goals. On average, shippers who convert long-haul freight from highway to intermodal rail realize cost savings in the range of 10-40%.
Rail is the most environmentally friendly way to transport freight over land. One train can move one ton of freight nearly 450 miles on just a single gallon of fuel. By maximizing supply chain efficiencies through the use of intermodal rail, shippers can help do their part to keep the Earth green while adding green to their bottom line.
Discover which freight in your network is best for intermodal conversion with a complimentary Highway to Rail (H2R) freight analysis. Request your analysis today.