Tag Archive for: intermodal

Intermodal, not Long-Haul

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Intermodal, not Long-HaulIn January 2014, SupplyChainBrain published an article entitled, “Intermodal Thrives, While Long-haul Trucking Dives.” In the article, the author details how after years of struggle to match the service levels of long-haul trucking, in October 2013 intermodal saw an all-time high for total revenue movements in the U.S.—with all indications pointing to the upward trend continuing.

The recent uptick in growth can be attributed to an increased recognition of the benefits of intermodal transportation, namely cost savings, environmental benefits, and highway safety results. The benefits extend to the shippers, who see lower rates combined with more predictable pricing, as well as the flexibility of loading and unloading goods in a dropped trailer environment, which generally reduces handling costs. Increasingly, shippers are recognizing that this cost savings outweighs the speed by which they can move their goods via long-haul truck.

The experts also weigh in in favor of intermodal’s growth: the Federal Highway Administration estimates intermodal transportation will increase in popularity as traditional over-the-road freight networks are less able to meet demand, and he ATA calculates intermodal will grow an average of 5.1 percent a year until 2018. With years of recession finally falling away, the shift makes sense, according to Ryan Bouchard, an analyst with Avondale Partners: “The message of less costly and more efficient movement is resonating with clients.”

In addition to the benefits to customers and business, drivers are also beginning to realize the perks of driving intermodally—from being home and spending most nights and weekends with their families, to showering daily (without worrying about a shower ticket). As independent business owners, intermodal drivers are also able to control maintenance costs by working with familiar shop/mechanic, and running round trips—without waiting or deadheading for a backhaul.

With pay grossing $2500 to $3000+ per week with the right work ethic, drivers can earn a living—while having a life.

What is Intermodal Transportation?

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What is IntermodalIn the transportation industry, there are myriad ways to move freight across the world; still, ships, railroads and trucks are, essentially, the backbone of the industry. The transport of goods and commodities from manufacturers to customers is no small undertaking, and requires a high degree of organization and coordination between the different modes. One innovation that’s altered the global freight movement landscape is the intermodal container.

Intermodal transportation utilizes special standardized containers to transport cargo on trucks, freight trains and ships. These standardized containers are large rectangular boxes, capable of being secured to special trailers. The containers are durable, constructed of steel and built so that they can be transferred between the different modes of transportation.

The concept of intermodal transportation is nothing new. Dating back to the 18th century and predating the railways, some of the earliest containers were those used for shipping in England in the 1780s. Later, in the 1950s, a new standardized steel intermodal container (based on specifications from the United States Department of Defense) arrived on the scene, and began to revolutionize freight transportation. The use of the new modality using containers increased steadily in the 1960s, with rail intermodal traffic tripling between 1980 and 2002.

The bookends of intermodal tend to be rail and ocean segments; in between, trucking is frequently used to connect them. Commonly referred to as drayage, the specialized trucking that runs between ocean ports, rail terminals, and inland shipping docks is typically provided by dedicated companies.

While many variables exist, a common scenario would begin with a truck moving an empty piece of equipment to a shipper to pick up a load. This equipment would then be loaded with freight and taken by truck to a railroad yard. The loaded equipment would be put onto a train and railed to its destination, taken off the train and finally delivered by truck to the customer. The overarching goal is overall efficiency in the process, which facilitates profit for all parties involved.

Calhoun Truck Lines has six trucking operations throughout the Midwest (Detroit, Chicago, Minneapolis, Omaha, Columbus, Indianapolis). Each operation is fully equipped to handle your intermodal trucking needs. We are dedicated to delivering a level of service that consistently meets our customers’ expectations. Our responsibility continues with providing a professional working environment for our employees and maintaining a safety conscious truck fleet to share the roads with fellow motorists. To learn more about working with us, visit us online at CalhounTruckLines.com.

$23 Billion Being Invested In The Intermodal Freight Railway Network.

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As a company working in the Midwest intermodal transport business, we’re often described as being closely situated at the heart of our nation’s railway system.

There are over 140,000 miles of rail comprising a network that stretches across the major freight railroads in the United States, Canada and Mexico, as well as Amtrak. These railroads carry 43 percent of intercity domestic freight – more than any other mode of transportation.

Through this interconnected rail network, our U.S. freight railroads are a shining emblem as the world’s most efficient, lowest-cost freight rail system. Because of this transportation prowess, the U.S. has led for many years in developing state-of-the-art logistics systems for truckers, rail companies, and other freighters.

The benefits of this massive rail network across North America are many. According to the Association of American Railroads, freight railroads provide shippers like Calhoun Truck Lines an affordable and efficient way to move freight. Through this method, freight railroads provide enormous public benefits, including increased fuel efficiency, lower greenhouse gas emissions, and less highway congestion.

This is a circuitous way to tell how proud and excited we are at Calhoun Truck Lines to learn that the Association of American Railroads is investing $23 billion to build, maintain and upgrade the nation’s freight rail network throughout 2012. This is news that was recently announced in new ads released by The Association of American Railroads. You can see one of the clips below.

Just for comparison sake, the new ads show that $23 billion invested in the U.S. rail network is equivalent to four sports stadiums, five large bridges and eight convention centers. It’s a huge infrastructure project that most Americans don’t really even think about today. The AAR wants to bring awareness to the investment it makes in freight lines that enable goods and commerce to work well.

According to a recent story at RT&S, freight railroad companies support the country’s nationwide rail network so taxpayers don’t have to. “These investments in turn help keep American businesses competitive in the global marketplace, while supporting not only railroad jobs, but also supporting jobs throughout the economy,” said Edward Hamberger, president and CEO of AAR. “And by investing more than $500 billion since 1980, we have created the best freight rail network in the world.”

The AAR says that railroads invest about 17 percent of annual revenues on capital expenditures annually. That’s huge, a far higher amount per year compared to other U.S. goods manufacturers. These investments take shape in new rail tracks, bridges and tunnels; intermodal terminals for truck-to-train freight transport; modern safety equipment; new locomotive engines and other ways to keep our freight rail network running productively.

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