If you’re in the e-commerce industry, you know that getting products to your customers quickly and efficiently is key to success. One option to consider is intermodal shipping, which involves the movement of goods using multiple modes of transportation, such as trucks, rail, and ships.

Did you know that e-commerce sales in Southeast Asia are projected to reach over $211 billion by 2025? With such a large and rapidly growing market, finding cost-effective and sustainable ways to ship products is more important than ever. That’s where intermodal shipping comes in.

In this article, we’ll cover everything you need to know about intermodal shipping for e-commerce, including how it works, the types of products that can be shipped using intermodal, the benefits of using this method, and tips for incorporating it into your supply chain. We’ll also discuss the differences between intermodal and transloading and provide guidance on choosing an intermodal carrier. 

By the end of this article, you’ll have a good understanding of whether intermodal shipping is the right choice for your e-commerce business. Let’s dive right in.

What Is Intermodal Shipping?

As an e-commerce company, you’re always looking for ways to save money and streamline your supply chain. That’s where intermodal shipping comes in!

Intermodal shipping is the process of transporting goods using multiple modes of transportation, such as rail, truck, and ship. This allows you to take advantage of the unique strengths of each mode and ultimately save money on shipping costs.

For example, let’s say you want to ship a large quantity of products from your warehouse in the United States to a customer in Southeast Asia. Instead of using a single mode of transportation, like air cargo or a long-haul truck, you could use intermodal shipping to transfer the goods from a truck to a train to a ship. This would be more cost-effective and sustainable than using a single mode of transportation.

In addition to cost savings, intermodal shipping can also help you increase efficiency in your supply chain. You can reach your destination faster and with less hassle by using multiple modes of transportation. 

Plus, many intermodal carriers offer to track and report tools so that you can stay updated on the status of your shipments every step of the way.

Overall, intermodal shipping is a great option for e-commerce companies looking to save money and streamline their supply chain. It’s cost-effective, sustainable, and efficient, making it the perfect choice for shipping your products to customers all over the world.

How Does Intermodal Shipping Work?

The process of intermodal shipping typically begins with the transportation of goods by truck to a terminal or transloading facility. A terminal is a dedicated location where goods are transferred between modes of transportation. At the same time, a transloading facility is a flexible location that can transfer goods between modes of transportation.

Once the goods have arrived at the terminal or transloading facility, they are transferred to a different mode of transportation. This could be a train, ship, or another mode of transportation, depending on the final destination of the goods. For example, a company based in North America might use intermodal shipping to transport goods by truck to a rail terminal, where they are then loaded onto a train and shipped to a port for international delivery.

Intermodal shipping also involves the use of specialized equipment, such as containers and chassis.

• Containers are large, sturdy boxes used to transport goods by ship, train, and truck. They are typically made of metal or sturdy plastic and are designed to be easily transferred between modes of transportation. 
• Chassis are specialized frames that are used to transport containers by truck. They are designed to be easily attached and detached from trucks, allowing for the efficient transfer of containers between modes of transportation.

Once the goods have been loaded onto the new mode of transportation, they are shipped to their final destination. Many intermodal carriers offer tracking and reporting tools, allowing you to stay updated on the status of your shipments and make informed decisions about your supply chain.

In terms of logistics, intermodal shipping can be a complex process as it involves coordinating the transfer of goods between multiple modes of transportation. It’s important to work with a reliable intermodal carrier and have a clear understanding of the process to ensure the smooth and efficient transportation of your goods.

What Products Can You Ship Using Intermodal?

Intermodal shipping can be used to transport a wide range of products, from small consumer goods to large industrial equipment. Some common examples of products that can be shipped using intermodal include:

Clothing and fashion accessories: Intermodal shipping is a popular choice for clothing and fashion retailers, as it allows them to transport large quantities of products cost-effectively and sustainably.

Household goods: From furniture and appliances to home decor and kitchen supplies, intermodal shipping is a great option for shipping household goods of all shapes and sizes.

Industrial equipment: Companies in the manufacturing, construction, and energy industries often use intermodal shipping to transport large and heavy equipment, such as machinery, tools, and parts.

Automobiles: Intermodal shipping is a cost-effective and efficient way to transport automobiles, whether new vehicles are shipped to dealerships or used vehicles are shipped to customers.

Food and beverages: From fresh produce and dairy products to frozen meals and bottled drinks, intermodal shipping can transport a wide range of food and beverage products.

The versatility of intermodal shipping makes it a great choice for transporting a wide range of products. 

Whether you’re shipping small consumer goods or large industrial equipment, intermodal shipping can provide a cost-effective and sustainable transportation solution.

What Is an Example of Intermodal Shipping?

An example of intermodal shipping for an e-commerce company in Thailand might look like this:

• The e-commerce company receives an order from a customer in the United States for a large quantity of products.

• The company arranges for the transportation of the goods by truck from its warehouse in Thailand to a transloading facility in Bangkok.

• At the transloading facility, the goods are transferred from the truck to a container and loaded onto a train bound for a port in Singapore.

• The container is transferred from the train to a ship at the port in Singapore and shipped to the United States.

• Upon arrival in the United States, the container is transferred from the ship to a truck and transported to a distribution center for final delivery to the customer.

Throughout the process, the e-commerce company can use tracking and reporting tools provided by the intermodal carrier to stay updated on the status of the shipment and make informed decisions about its supply chain.

In this example, intermodal shipping allowed the e-commerce company to take advantage of the unique strengths of multiple modes of transportation to transport the goods cost-effectively and sustainably. By using a combination of truck, train, and ship, the company was able to transport the goods from Thailand to the United States efficiently and at a lower cost than if it had used a single mode of transportation.

Overall, intermodal shipping is a versatile and efficient transportation method that companies of all sizes can use to transport a wide range of products in a cost-effective and sustainable way.

What Are the Benefits of Intermodal Shipping? 3 Reasons to Convert Truckload Freight to the rail

Intermodal shipping has many benefits, including cost-savings, sustainability, and increased capacity. Here’s a closer look at each of these benefits:

1. Cost-Savings

Intermodal shipping can provide significant cost savings compared to other transportation methods. This is because it allows you to take advantage of the unique strengths of multiple modes of transportation, such as the cost-effectiveness of rail transportation and the long-distance capabilities of ships. Using a combination of modes, you can often transport your goods at a lower cost than if you used a single mode.

For example, a clothing and fashion retailer based in Singapore might use intermodal shipping to transport large quantities of clothing and accessories to customers in the United States. By using a combination of truck, train, and ship, the retailer can take advantage of the cost-effectiveness of rail transportation and the long-distance capabilities of ships, ultimately saving money on shipping costs compared to a single mode of transportation.

2. Sustainability

Intermodal shipping is a more sustainable transportation option compared to other methods, such as long-haul trucking. This is because it typically involves the use of modes of transportation that are more fuel-efficient and have a lower carbon footprint, such as trains and ships. Intermodal shipping can reduce your carbon emissions and contribute to a more sustainable supply chain.

Let’s take an example of an e-commerce company that sells organic food and beverages that might use intermodal shipping to transport its products from farmers in rural Indonesia to customers in major cities around the world. By combining trucks, trains, and ships, the company can reduce its carbon emissions and contribute to a more sustainable supply chain.

3. Capacity

Intermodal shipping can also increase the capacity of your transportation network. This is because it allows you to take advantage of the large carrying capacity of modes such as trains and ships, which can transport large quantities of goods over long distances. This can be especially beneficial for companies that need to transport large quantities of goods but don’t have the resources or infrastructure to do so using a single mode of transportation.

An e-commerce company that sells large and heavy industrial equipment might use intermodal shipping to transport its products to customers around the world. By using a combination of truck, train, and ship, the company can take advantage of the large carrying capacity of modes such as trains and ships, allowing it to transport large quantities of goods over long distances without investing in additional infrastructure.

Overall, intermodal shipping can provide a range of benefits to e-commerce brands, including cost-savings, sustainability, increased capacity, and many other benefits. By utilizing multiple modes of transportation, companies can streamline their supply chain and transport goods more efficiently and cost-effectively.

The 4 Types of Intermodal Carriers: How to Choose a Provider

When it comes to intermodal shipping, there are several types of carriers to choose from. Each carrier type has its unique characteristics and business model, and it’s important to understand these differences to choose the best provider for your needs. Here’s a closer look at the four types of intermodal carriers:

1. Non-Asset-Based Intermodal Carriers

Non-asset-based intermodal carriers, also known as third-party logistics (3PL) providers, do not own their own transportation assets such as trucks, trains, or ships. Instead, they contract with other carriers to transport goods on behalf of their clients. Non-asset-based carriers often offer a range of services beyond transportation, including warehousing, customs brokerage, and supply chain management.

Pros: Non-asset-based carriers are typically more flexible than asset-based carriers and can offer a wide range of services beyond transportation. They can also provide a single point of contact for all your logistics needs, making it easier to manage your supply chain.

Cons: Non-asset-based carriers may not have the same level of control over the transportation of your goods as asset-based carriers, and they may be more vulnerable to disruptions in the carrier market.

2. Asset-Based Intermodal Carriers

Asset-based intermodal carriers own their own transportation assets, such as trucks, trains, and ships. They use these assets to transport goods on behalf of their clients and may also offer additional services such as customs brokerage and warehousing.

Pros: Asset-based carriers have more control over the transportation of your goods and may be more reliable than non-asset-based carriers. They may also have a more extensive network of assets, allowing them to offer more transportation options.

Cons: Asset-based carriers may be less flexible than non-asset-based carriers and may not offer a wide range of services beyond transportation. They may also be more expensive than non-asset-based carriers.

3. Asset-Lite Intermodal Carriers

Asset-lite intermodal carriers are a hybrid of asset-based and non-asset-based carriers. They own some transportation assets but also contract with other carriers to transport goods on behalf of their clients. Asset-lite carriers may offer a range of services beyond transportation, including customs brokerage and supply chain management.

Pros: Asset-lite carriers offer a combination of the benefits of asset-based and non-asset-based carriers. They may have more control over the transportation of your goods than non-asset-based carriers and may also be more flexible than asset-based carriers. Asset-lite carriers may also offer a range of services beyond transportation, providing a single point of contact for all your logistics needs.

Cons: Asset-lite carriers may not have the same level of control over the transportation of your goods as asset-based carriers, and they may be more vulnerable to disruptions in the carrier market. They may also be more expensive than non-asset-based carriers.

4. Resellers

Resellers are intermodal carriers that do not own any transportation assets or have any direct involvement in the transportation of goods. Instead, they act as intermediaries, purchasing transportation services from other carriers and reselling them to their clients.

Pros: Resellers may offer competitive pricing for transportation services and may be able to offer a range of carriers and options. They may also provide a single point of contact for all your logistics needs.

Cons: Resellers may not have the same level of control over the transportation of your goods as asset-based or asset-lite carriers and may be more vulnerable to disruptions in the carrier market. They may also have limited visibility into the transportation process and may not be able to offer as much support as other types of carriers.

Each type of carrier has its own strengths and limitations, and the right choice for your business will depend on your specific needs and priorities. To choose the best intermodal carrier for your business, consider factors such as your transportation needs, the level of control and visibility you require, and your budget. You may also want to consider the range of services each type of carrier offers and how well they align with your overall supply chain strategy.

Intermodal vs. Transloading

Intermodal shipping and transloading are two methods of transportation that involve the use of multiple modes of transportation to transport goods from one location to another. 

However, there are some key differences between the two methods.

Facilities

Intermodal shipping typically involves using dedicated intermodal facilities, such as intermodal terminals and transloading facilities, where goods are transferred from one mode of transportation to another. 

Transloading facilities, in particular, are designed specifically for transferring goods from one mode of transportation to another and may offer additional services such as warehousing and cross-docking. In contrast, transloading can occur anywhere where goods are transferred from one mode of transportation to another, such as a warehouse or a port.

Equipment Used

Intermodal shipping typically involves using specialized equipment, such as intermodal containers and chassis, to transport goods between modes of transportation. 

Transloading, on the other hand, may involve using a wide range of equipment depending on the nature of the goods being transported and the modes of transportation being used. This could include pallets, cranes, forklifts, and other handling equipment.

Fees and Storage Costs

Intermodal carriers typically charge fees for the transportation of goods and may also charge additional fees for services such as warehousing and customs brokerage. 

Transloading fees may vary depending on the complexity of the transloading process and the services being provided. 

Both intermodal shipping and transloading may also involve storage costs for goods being held temporarily while they are being transferred between modes of transportation.

Weight Limits

Both intermodal shipping and transloading have weight limits that must be considered when transporting goods. 

For intermodal shipping, these limits are typically determined by the weight limits of the various modes of transportation being used and any restrictions imposed by the facilities where the goods are being transferred. 

Transloading may also have weight limits depending on the equipment used to handle the goods and the capabilities of the transportation modes. It is important to ensure that the weight of your goods does not exceed these limits to avoid delays or additional costs.

Environmental Impact

Both intermodal shipping and transloading can have an impact on the environment. Intermodal shipping, in particular, has the potential to be more sustainable than other transportation methods due to the use of modes such as trains and ships, which are typically more fuel-efficient and have a lower carbon footprint. 

However, the environmental impact of intermodal shipping and transloading will depend on various factors, such as the transportation modes, the distance the goods are transported, and the efficiency of the facilities and equipment being used.

Intermodal Process

The intermodal process typically involves using dedicated intermodal facilities and specialized equipment to transfer goods between modes of transportation. Here is what a typical intermodal process would look like:

• The intermodal process typically begins when an e-commerce company or other shipper receives an order for goods that need to be transported over long distances.

• The company arranges for the transportation of the goods by truck, train, ship, or a combination of these modes through an intermodal carrier or 3PL provider.

• The goods are loaded onto specialized intermodal containers or chassis at the origin location and transported to an intermodal terminal or transloading facility.

• At the intermodal terminal or transloading facility, the goods are transferred from one mode of transportation to another, such as from a truck to a train or from a train to a ship.

• The goods are transported to their destination using the chosen mode of transportation and may be transferred between modes multiple times along the way.

• Upon arrival at the destination, the goods are unloaded from the intermodal container or chassis and delivered to the final recipient.

Transloading Process

The transloading process involves the transfer of goods from one mode of transportation to another at a transloading facility or other location. Checkout the series of steps involved in the trasloading process below:

• The transloading process begins when an e-commerce company or other shipper receives an order for goods that need to be transported over long distances.

• The company arranges for the transportation of the goods by truck, train, ship, or a combination of these modes through a transloading carrier or 3PL provider.

• The goods are loaded onto the chosen mode of transportation at the origin location and transported to a transloading facility or other location where they will be transferred to another mode of transportation.

• At the transloading facility, the goods are unloaded from the original mode of transportation and transferred to the new mode using a range of equipment such as pallets, cranes, or forklifts.

• The goods are transported to their destination using the new mode of transportation and may be transferred between modes multiple times along the way.

• Upon arrival at the destination, the goods are unloaded from the mode of transportation and delivered to the final recipient.

In both the intermodal and transloading processes, the shipper needs to track the transportation of the goods to ensure that they are delivered on time and in good condition. This can be done using tracking and reporting tools provided by the carrier or 3PL provider. It is also important to consider the potential delays or disruptions in the transportation process and plan accordingly.

Does Intermodal Provide Shipment Visibility?

Intermodal shipping can provide visibility into the transportation of your goods throughout the entire process. Many intermodal carriers offer tracking and reporting tools that allow you to stay updated on the status of your shipments every step of the way.

For example, you might be able to track the location of your goods in real time, view detailed information about the mode of transportation being used, and receive alerts about any potential delays or issues. This information can be accessed through a web portal or mobile app, making it convenient for you to stay informed about your shipments.

In addition to tracking and reporting tools, many intermodal carriers also offer other services that can provide visibility into the transportation of your goods. These might include:

Freight forwarding: Intermodal carriers that offer freight forwarding services can help you manage the transportation of your goods from end to end, providing you with a single point of contact and visibility into the entire process.

Customs brokerage: Intermodal carriers that offer customs brokerage services can help you navigate the complex process of importing and exporting goods, providing you with guidance on paperwork and documentation and helping you avoid delays.

Supply chain management: Intermodal carriers that offer supply chain management services can help you optimize the transportation of your goods and streamline your supply chain, giving you visibility into every step of the process.

In addition to tracking and reporting tools and other services that provide visibility into the transportation of your goods, some intermodal carriers also offer end-to-end fulfillment services.

End-to-end fulfillment refers to managing an order’s entire lifecycle, from the moment it is placed to the moment it is delivered to the customer. This includes everything from warehousing and inventory management to order processing and shipping.

By partnering with an intermodal carrier that offers end-to-end fulfillment services, you can outsource the entire fulfillment process to a single provider, providing you with high visibility and control over your supply chain.

For example, an intermodal carrier that offers end-to-end fulfillment services might provide you with access to a web portal or mobile app that allows you to view real-time information about your orders and shipments and make informed decisions about your supply chain.

Overall, intermodal shipping can provide a high level of visibility into the transportation of your goods. And some carriers also offer end-to-end fulfillment services that allow you to outsource the entire fulfillment process and gain even greater visibility and control over your supply chain.

Tips for using intermodal in your supply chain

If you are considering using intermodal shipping in your supply chain, there are several important tips to keep in mind. Here are seven tips for using intermodal in your supply chain:

Consider the season

The time of year can have a significant impact on intermodal transportation. For example, demand for intermodal shipping may be higher during peak season when there is a surge in e-commerce orders, leading to potential delays and higher costs. 

On the other hand, off-peak seasons may offer more favorable rates and shorter transit times. It is important to consider the season when planning your intermodal shipments to ensure you get the best rates and transit times.

Take weight and weight distribution into account

Intermodal shipping has weight limits that must be considered when transporting goods. It is important to ensure that the weight of your goods does not exceed these limits to avoid delays or additional costs. 

Additionally, the weight distribution of your goods can impact the stability and safety of your intermodal shipments. Proper blocking and bracing of goods in intermodal containers can help to ensure that your shipments are stable and secure during transportation.

Include proper blocking and bracing in intermodal containers

Proper blocking and bracing of goods in intermodal containers can help to ensure that your shipments are stable and secure during transportation. This may involve using wood or metal dunnage, straps, or other restraints to hold the goods in place and prevent shifting. 

It is important to carefully plan the placement and restraints of your goods to ensure that they are properly secured in the container.

Expect potential delays

Intermodal shipping can involve multiple transfers between modes of transportation, leading to potential delays. It is important to anticipate and plan for these delays when scheduling your shipments to ensure that your goods arrive at their destination on time.

Track shipments

Tracking and visibility are important considerations when using intermodal shipping. Many intermodal carriers and 3PL providers offer tracking and reporting tools to help you with the up-to-date live progress of your shipments and stay informed about any potential delays or issues.

Audit the intermodal invoices

It is important to carefully review your intermodal invoices to ensure you are being charged the correct rates and fees. This may involve auditing the invoices to ensure that all charges are accurate and properly documented. Auditing your invoices can help identify any mistakes or discrepancies and ensure that you pay the correct amount for your intermodal shipments.

Partner with a 3PL

Partnering with a third-party logistics (3PL) provider can be a valuable way to manage your intermodal shipping needs. 

3PLs can provide a range of services, including transportation, warehousing, and customs brokerage, and can help to streamline your supply chain operations. By partnering with a 3PL, you can benefit from their expertise and resources, helping you to manage your intermodal shipping needs.

Remember, intermodal shipping can be a valuable tool for your e-commerce store if you want to transport goods over long distances. By considering the season, weight and weight distribution, proper blocking and bracing, potential delays, tracking shipments, auditing invoices, and partnering with a 3PL, you can more effectively manage your intermodal shipping needs and ensure that your goods are delivered on time and in good condition.