World Trade - January 2009 - (Page 39)

expedited as well as regular service. Intermodal also “Key to developing a successful intermodal program is offers shippers various strategies for maximizing freight understanding the opportunities that can be converted and loads. These include using same-size boxes when load- then developing a strategy to begin the implementation,” ing boxcars, minimizing dead-head or empty miles, explains Marsh. For example, a large number of shippers planning appointments of delivery, and minimizing are taking high density lanes and converting a portion to the dwell and idling of assets. This is, in part, due to intermodal while leaving some of the shipments on the advancements in service reliability—the result of railroad highway. They are able to do this because intermodal proproviders investing in improved infrastructure. vides consistent and predictable service that allows them to “In addition, intermodal transportation has become be versatile in their transportation selection while not sacrieven more important to rail providers such as the CSX ﬁcing the needs throughout their supply chain. and BNSF,” comments Van Kirk. “Because the railroads “Customers are becoming more interested and eduare running disciplined networks that create density of cated about the intermodal product and that has allowed volume, their sharpened focus has resulted in better reli- for more collaborative discussions about long-term ability by the railroads.” sourcing needs,” Marsh says. For all these beneﬁts, however, there remain trade-offs for shippers when choosing intermodal. “Their tran- Outlook and advice sit times are a bit longer than truckload, and the loads Going forward, intermodal should offer even wider need to be braced to prevent shifting,” concedes Van beneﬁts given the probable impact economic difﬁculties will have on many logistics providKirk. While the service level assoers. Brashares warns that the credit ciated with intermodal moves has crisis will be hard on a number of improved over the years and is now Freight shipped small trucking companies, parconsiderably more competitive, ticularly those involved in specialty shippers still typically report geton one intermodal haul. “Capacity is probably going to ting better service from truckload. train would take go out of the marketplace,” he says. Correspondingly, one of the bigOne factor that has plagued gest changes to come to intermodal upwards of 200 to trucking companies of late, but in recent years is improved percepbeen a boon to intermodal, has tion as to what it can provide for 280 trucks to haul. been the difﬁculty in hiring longshippers. “What was once only distance drivers. “This has been thought to be favorable mode for interplant movements has evolved to be a very viable a huge issue,” Marsh concurs. “Intermodal helps the option for freight destined for end customers,” Van driver shortage because drivers have a much shorter haul. They can be home at night.” Kirk says. Also hurting trucking ﬁrms is the fact trailers are more With respect to scheduling, shipment security and fragile freight, intermodal offers good and reassuring expensive, plus road networks in the United States are news. “When it comes to scheduling, the railroads are in disarray and need to be rebuilt. To some degree, this running in a very reliable fashion today,” he explains. builds another argument in favor of intermodal since the “That means a high-quality intermodal provider can mode does not employ trucking until the last segment. Therefore, Marsh suggests that shippers be pro-active help you understand the timing cut-offs for the ramps to ensure you are meeting the transit requirements of your and analyze their supply chain and distribution network. “Each shipper should understand the opportunities for customers.” In regards to security, the railroads’ increased use of intermodal conversion and have realistic targets to help double-stacked containers is helping reduce risk of theft. achieve those objectives,” he says. “One of the keys to “The practice of dropping a container into the well of success with our customers is developing a collaboraan intermodal car with another container on top makes tive business model in which we share information and it virtually impossible for a break-in to occur in transit,” strategies that can help us achieve common goals.” At the end of the day, despite the economic headhe says. “As for fragile freight, both rails and intermodal providers are willing to work with shippers to identify winds, intermodal will remain the most attractive posieffective bracing solutions to allow shippers to ship tion in the domestic transportation marketplace. “That’s because it represents good value for shippers,” Van Kirk intermodal.” concludes. “The ability to save money, obtain reliable Team effort transits and service, mitigate the impact of fuel price volToday, intermodal providers benefit by addressing a atility, and make a positive impact upon environmental wide host of shipper needs. The success that intermodal sustainability will contribute to its strength.” WT is now realizing is largely due to a team effort between trucking firms and the railroads to bring intermodal Washington, D.C.-based writer Karen Thuermer regularly writes about options to shippers. Another part of the equation are transportation topics. third-party operators, known as intermodal marketing companies (IMCs), which continue to create intermodal For reprints of this article, please contact Cindy Williams solutions for customers often utilizing a non-asset, railat williamsc@bnpmedia.com or 610-436-4220 ext. 8516. owned equipment. WWW.WORLDTRADEMAG.COM 39 http://WWW.WORLDTRADEMAG.COM

Table of Contents Feed for the Digital Edition of World Trade - January 2009

World Trade - January 2009 Contents Supply Chain Finance Conference: The Right Stuff at the Right Time! Is the Dollar's 'Exorbitant Privelege' as the Global Standard at Risk? Supply Chain Watch Tradewinds The Rise of the 4PL An Evolving Tech Backbone Makes 4PL Service More Effective The Changing Landscape of U.S. Railroads Intermodal Grows Up Port of Hamburg Grows as Distribution Point to Eastern Europe Outsourcing Without Fear Measuring the Carbon Footprint

World Trade - January 2009

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