Knowing When to Select Rail Freight As an Intermodal Option
With an extensive background in production management, Bradley “Brad” Berfield has experience in diverse aspects of supply chain operations. One of Bradley Berfield’s areas of extensive knowledge is intermodal transportation, which involves the use of more than one mode (such as ship, aircraft, rail, or truck) to transport freight to a destination.
When designing an optimal intermodal strategy incorporating rail, one core consideration is length of the journey, with longer-mile transit increasing savings. An example is a 500- or 600-mile rail journey, which would not save enough money to offset drayage expenses to and from rail terminals. When the length of transit exceeds 700 miles, however, the use of a rail route can make economic sense. Even then, a delivery distance of no more than 50 to 100 miles from rail ramp is preferred, except in cases of extremely long rail transport.
Another consideration is flexibility of schedule. Even in situations where cost savings are substantial using rail, shipments with pre-set, inflexible delivery appointments and the potential for significant late fees may make rail a risky proposal. This has to do with the relative slowness of rail and potential for weather and mechanical delays to impact delivery date. In such situations, it may be more predictable and less complex to go with a more expensive trucking company.
When designing an optimal intermodal strategy incorporating rail, one core consideration is length of the journey, with longer-mile transit increasing savings. An example is a 500- or 600-mile rail journey, which would not save enough money to offset drayage expenses to and from rail terminals. When the length of transit exceeds 700 miles, however, the use of a rail route can make economic sense. Even then, a delivery distance of no more than 50 to 100 miles from rail ramp is preferred, except in cases of extremely long rail transport.
Another consideration is flexibility of schedule. Even in situations where cost savings are substantial using rail, shipments with pre-set, inflexible delivery appointments and the potential for significant late fees may make rail a risky proposal. This has to do with the relative slowness of rail and potential for weather and mechanical delays to impact delivery date. In such situations, it may be more predictable and less complex to go with a more expensive trucking company.
