Everything You Need to Know About Intermodal Shipping Containers

The logistics industry has experienced transformative changes over the years, and one of the most revolutionary shifts is the advent of intermodal shipping. Intermodal shipping has redefined how cargo is transported across the globe by using standardized shipping containers that can seamlessly transition between multiple modes of transport—road, rail, sea, or air. This method not only improves efficiency but also significantly reduces costs and environmental impact.

In this comprehensive guide, we’ll delve deep into intermodal shipping, its workings, advantages, challenges, and why it’s a preferred choice for global supply chains. 

What is Intermodal Shipping?

Intermodal shipping is a method of transporting cargo using standardized containers that can be easily moved across different transportation modes without unloading or reloading the goods. These containers are designed to maintain the integrity of the cargo, ensuring safety and efficiency throughout the journey.

Why Intermodal Shipping is the Future

• Cost Efficiency: By leveraging railways and maritime transport, intermodal shipping can reduce fuel costs by up to 30% compared to traditional trucking.
• Environmental Benefits: Rail and sea transport produce fewer emissions, making this method more eco-friendly.
• Flexibility: The same container can be used across trucks, ships, and trains, making it suitable for long-distance and complex logistics needs.

The International Organization for Standardization (ISO) sets guidelines to ensure containers are durable, weather-resistant, and structurally sound. Most containers are 20 or 40 feet in length, and there are specialized types for perishable goods and oversized cargo.

Who Should Use Intermodal Containers?

Intermodal shipping containers are ideal for businesses that:

• Handle large volumes of cargo.
• Require efficient and secure transportation over long distances.
• Need cost-effective solutions to reduce logistical expenses.

Standardization makes loading and unloading faster and more efficient. Unlike traditional methods, where cargo needs to be handled multiple times, intermodal containers minimize labor and time. They’re also designed to fit together easily, saving valuable space during transport.

How Does Intermodal Shipping Work?

Intermodal shipping operates on a project-based approach. The pricing structure typically includes:

• Linehaul Charges: The base cost of moving cargo from point A to point B.
• Fuel Expenses: Costs fluctuate based on oil prices.
• Drayage Fees: Cover the loading and unloading of cargo and include accessorial services like terminal charges and storage.

Example of Intermodal Shipping

Imagine a furniture manufacturer in Jodhpur, India, receives an order to ship wooden furniture to Montana, Texas. Montana is landlocked, requiring multiple transport modes. An intermodal shipping provider, such as Maersk, arranges the movement of the container via truck to a port, then by ship to a U.S. port, and finally by rail or truck to the final destination.

The container remains sealed throughout the journey, ensuring the cargo is secure and intact. Providers like Maersk also calculate the Verified Gross Mass (VGM) to ensure compliance with international regulations and prevent overloading.

Types of Intermodal Containers

Intermodal containers come in various types, designed to suit the specific needs of different kinds of cargo. Here are the main types explained in detail:

Dry Cargo Containers:

These are the most common type, accounting for about 90% of intermodal containers. They are used for transporting non-perishable goods like textiles, furniture, or machinery. Their standard structure ensures the safety and security of general cargo during transit.

Insulated Containers:

Built with weather-resistant insulation, this is one of 31 containers ideal for temperature-sensitive goods. They help maintain a stable internal environment, making them suitable for food products and certain chemicals.

Open-Top Containers:

Designed for oversized cargo, these containers lack a solid roof. Instead, they have a removable tarpaulin cover, making them perfect for machinery, construction materials, or items that cannot be easily loaded through standard container doors.

Flat Rack Containers:

With collapsible sides, flat rack containers are used for bulkier items like heavy machinery, pipes, or vehicles. Their design allows easy loading and unloading of large cargo.

Refrigerated Containers:

Also known as reefers, these maintain specific temperatures, ranging from -65°F to 40°F. They are crucial for transporting perishable goods like frozen foods, pharmaceuticals, and flowers.

Tank Containers:

Specially designed for liquid or powdered cargo, tank containers are one of the types of 31 containers that provide safety and leak prevention, making them suitable for chemicals, oils, and beverages.

Benefits of Intermodal Shipping

Time-Saving: Intermodal shipping minimizes delays by streamlining loading and unloading processes. Containers are handled efficiently at ports and terminals, reducing crane time and improving turnaround time for trucks.

High Capacity: 

• A 40-foot container can carry up to 40,000 pounds, while a 53-foot container increases capacity by 60%.
• This makes it ideal for transporting large shipments like machinery, furniture, or vehicles.

Safety and Security: Steel containers provide robust protection against theft, weather damage, and mishandling. Sealed containers also reduce the risk of tampering.

Environmental Impact: By reducing reliance on trucks and incorporating rail and maritime modes, intermodal shipping lowers greenhouse gas emissions significantly.

Cost-Effectiveness: The standardization of containers reduces labor costs and fuel expenses, offering a more economical solution for businesses.

Best Practices for Intermodal Shipping

Real-Time Tracking

Modern technologies like IoT devices and AI help companies monitor container locations and conditions. Real-time tracking reduces the risk of lost or damaged cargo.

Efficient Documentation

Accurate documentation, including bills of lading and commercial invoices, ensures smooth transitions across transport modes.

Proactive Management

Regularly auditing processes and managing charges like demurrage and detention fees can prevent unnecessary expenses.

Predictive Analytics

Using AI and machine learning, companies can forecast container usage, optimize routes, and manage inventory more effectively.

Challenges in Intermodal Shipping

While intermodal shipping offers numerous benefits, it also has its challenges:

1. High Initial Costs: Investing in infrastructure like containers and handling equipment can be expensive.
2. Complex Coordination: Managing multiple transport modes requires seamless communication and coordination among various stakeholders.
3. Regulatory Compliance: Ensuring compliance with international standards and regulations adds an additional layer of complexity.

Intermodal vs. Multimodal Shipping

Though often used interchangeably, intermodal and multimodal shipping differ significantly:

• Intermodal Shipping: Involves multiple contracts with different carriers for each transport mode.
• Multimodal Shipping: Managed under a single contract with one provider handling all transport modes.

Intermodal shipping offers greater flexibility, while multimodal shipping simplifies logistics management.

Conclusion

As a global supply chain company, Credlix plays a pivotal role in enhancing intermodal shipping efficiency. By leveraging advanced technology, Credlix ensures seamless tracking, optimized routes, and cost-effective solutions for businesses. Their commitment to sustainability and innovation aligns perfectly with the growing need for environmentally friendly and efficient logistics.

Whether you’re a small business looking to expand your reach or a multinational corporation managing complex supply chains, intermodal shipping—powered by experts like Credlix—can transform your logistics operations and drive long-term success.

Also Read: A Guide to Container Yards for International Shipping