Intermodal Transportation
Definition
Intermodal transportation moves freight using two or more modes, most commonly truck and rail, with the cargo staying in the same container or trailer throughout. Goods are transferred between modes without being unloaded and rehandled.
In Practice
A typical domestic intermodal move starts with a truck dray from the shipper to a rail ramp, a long rail linehaul in a container on a well car, and a final dray to the consignee. Because the freight itself is never touched between origin and destination, handling damage stays low while rail economics cut linehaul cost, often 10 to 25 percent below truckload on long lanes.
Planners use intermodal for long-haul, less time-sensitive volume, typically lanes over 700 miles. The trade-offs are one to three extra days of transit versus truck, less schedule flexibility, and dependence on ramp locations and dray capacity at each end.
For example, a consumer goods company moving weekly volume from Southern California to Chicago shifts steady replenishment loads to intermodal, keeping truckload only for urgent orders, and banks the rate difference across hundreds of annual loads.
Related Calculators
Related Terms
Drayage is the short-distance trucking of containers, typically between a port or rail ramp and a nearby warehouse, yard, or terminal. It is the connecting link at each end of an intermodal or ocean move.
Full Truckload (FTL)Full truckload shipping dedicates an entire trailer to one shipper's freight, moving directly from origin to destination without intermediate handling. It is typically used for shipments large enough to fill or nearly fill a 48- or 53-foot trailer.
TEU (Twenty-Foot Equivalent Unit)A TEU is the standard unit of container capacity, equal to one twenty-foot shipping container. A forty-foot container (FEU) counts as two TEU, and the measure is used to size vessels, ports, and trade volumes.
Transit TimeTransit time is the elapsed time between a shipment leaving its origin and arriving at its destination. It is a core component of total lead time and a key input to inventory and delivery planning.