By Kat Ball and Jim Brister ALC Vancouver, BC
Well, it’s alright, we’re going to the end of the line. As The Travelling Wilburys appreciate, trains are an important and instrumental part of our nation’s history. America’s first intercity railroad, the 13-mile Baltimore and Ohio Railroad was completed in early 1830. Canada’s first railway line opened in 1836 with the Champlain and St. Lawrence Railroad, which connected two sides of the river outside Montreal. Nearly 200 years later, there are seven major railroads operating in the United States and two in Canada. These networks join North America with unlimited access to every major port, city, state, and province. And while the end of the lines exists within this network, there is no end in sight for the utilization of this mode in logistics. Intermodal shipping continues to be a popular choice for many shippers to move their goods to market across North America.
There are many features and benefits of intermodal (rail plus truck) shipping that make it an attractive option for logistics:
- Nationwide rail infrastructure— Shippers can speed their goods to market with door-to-door service, which includes impressive weekly rail schedules to multiple destinations.
- Non-stop rail service— Public rail stops multiple times to add or remove containers, which often subjects fragile and perishable items to prolonged weather extremes, shifting, and damage. For the rail portion of dedicated commercial intermodal, the networks operate non-stop, coast to coast, which means more product moving and fewer delays.
- Increase overall capacity— Intermodal allows for additional capacity compared to truckload shipping. It provides access to a large pool of refrigerated and dry van containers with different specifications available (53′, 48′, 40′ containers, high cubes). In addition, intermodal also has a large network of drayage options from all major terminals in Canada and the U.S.
- Product protection— 24/7 monitoring via GPS, remote temperature adjustments, and standardized container sealing for unparalleled security, a top concern for many stakeholders facing increased theft, fraud, and scam incidents in the trucking market.
- Cost savings— Intermodal is more cost-effective than over-the-road trucking and allows for savings on freight costs compared to using trucks alone. By providing competitive and consistent pricing, budget fluctuations can be minimized.
- Time savings— One point of contact door-to-door; using a broker who manages intermodal and will handle all customs clearance, rail billing, and third-party communications on behalf of the shipper.
- Environmental, social, and governance focus—Intermodal shipping has less impact on the environment than over-the-road trucking. Its carbon footprint is a fraction of that of long-haul trucks, and it has a different set of regulatory mandates than trucks. Stringent and regulated security measures safeguard goods throughout the supply chain.
Looking down the line to Q4, most reports predict intermodal volume to grow into Q4. Key indicators to watch are domestic container volume, which is largely influenced by shippers’ inventories, consumer spending, and retail sales. Retail sales are growing, albeit slowly. This, coupled with lower retail inventories, bodes well for volume growth in intermodal. In addition, many experts are looking at the truck market’s indication of a freight rate increase. Trucking freight indexes fell 1.8% month-over-month mid-year, looking like rates have hit the bottom. As rates move up, rail will become a more favorable option for the end of 2024. So, All Aboard, it looks like it will be an exciting end to 2024!
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Kat Ball is the general manager of the ALC Vancouver, BC office. She received her undergraduate degree in English from Simon Fraser University, followed by a post-graduate diploma in Marketing and Sales Management from the University of British Columbia. Kat began working for ALC Vancouver, BC (formerly United World Transportation) in 2006, gaining experience in various roles. In April 2023, the Allen Lund Company acquired United World Transportation and Kat aided in the transition as assistant general manager. The following April, she was promoted to general manager.
kat.ball@allenlund.com
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Jim Brister is the business development manager of the ALC Vancouver, BC office. As a Commerce Business graduate out of the University of British Columbia, he has worked across the building materials and construction industries living in both Canada and the U.S. before starting United World Transportation in 2003. Now as part of the Allen Lund Company Jim continues to enjoy the challenges and pace of the transportation world.
jim.brister@allenlund.com