Shipper | Best practices
Reliable and cost-competitive service: Best practices for integrating intermodal into your transportation strategy
What is intermodal transportation?
Intermodal transportation is the movement of freight by combination of rail and road, typically in 53' intermodal shipping containers. It’s used when a shipper needs to move long-transit freight cost-efficiently. According to the Federal Railroad Administration, the U.S. rail network moves 54 tons of freight for every person in the country.
Key takeaways:
- Intermodal transportation combines rail and road to move freight cost-effectively, particularly for long-distance shipments.
- Shippers should choose intermodal providers that leverage efficient rail networks, invest in equipment and maintain sufficient container and chassis capacity to accommodate growth and seasonal demand.
- Professional, well-trained drivers and shipper-friendly freight practices, such as open appointment windows and drop-and-hook operations, can improve service and help shippers maintain priority during capacity constraints.
How to build a more effective intermodal transportation strategy
There are numerous factors for transportation professionals to consider before implementing — or improving — their intermodal transportation strategy.
Here are five best practices that experienced intermodal transportation professionals are using to navigate the market for long-term success.
Use precision scheduled railroading (PSR)
To get the most out of working with an intermodal provider, look for one that uses PSR. PSR is a rail improvement strategy that transports the same amount of freight with fewer rail cars and locomotives, while using a scheduled direct line of transport across a network. CSX runs PSR, which enables longer trains, faster speeds and less dwell time in terminals since its conversion. As a primary rail used by Schneider, this benefits shippers.
For those moving freight with providers using railroads that will be switching to PSR, a multimodal provider should be on the priority list. During PSR implementation, shippers can expect ramp closures, decreased service and increased cost. To navigate these disruptions, shippers should work with providers like Schneider that ship intermodal on CSX and offer multimodal solutions to route freight the best ways possible.
Connect with an intermodal provider that invests in equipment
During busy shipping seasons, shippers may find their providers don’t have intermodal containers or chassis to support their needs, which is bad news for shippers that plan to grow or that have seasonal business spikes.
It’s important to find providers that invest in intermodal equipment to support future growth. Schneider continually invests in purchasing new equipment and maintaining existing assets. The provider has a track record for increasing shippers’ payloads up to 10% with company-owned chassis.
Prioritize carriers with uniformed, well-trained drivers
With lawsuits mounting and shifting rules around owner-operator classification, shippers need to find carriers that attract and retain company drivers.
Look for a company that offers uniformed company drivers who are trained to follow safety standards. In addition, ask carriers what they do beyond the federal law that only requires urinalysis to remove unqualified candidates from their hiring pool. After all, the more skilled and professional the drivers, the better the experience will be for the shippers' customers.
Improve freight characteristics
It’s just as important to become a shipper of choice for intermodal providers as it is any other mode of transportation. Intermodal providers dealing with productivity loss in the market or battling tight market capacity begin to prioritize loads from shippers with friendly freight characteristics.
By working with a supportive intermodal provider like Schneider, shippers can efficiently improve their transportation strategy to include characteristics like open appointment windows and drop and hook instead of live loads to ensure their loads remain top priority.
Hold provider accountable to outperform the spot market
As with all modes of transportation, the spot market can be attractive when capacity becomes widely available. However, when capacity inevitably tightens, shippers that try to convert back to their intermodal provider can find containers, drivers and capacity removed from areas they need it.
It’s vital to establish a long-term strategic game plan with an intermodal provider. In working with a freight service provider like Schneider, shippers gain an optimized and less stressful supply chain. Also, a strong attribute to look for in an intermodal provider is a dedicated intermodal onboarding team to set the business up for success from the start.
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