Four Key Players in Intermodal Transportation
InTek Freight and Logistics, Inc.
Intermodal, Truckload, LTL and Expedited Freight Capacity Solutions | Customized Freight Management Services
Intermodal transportation, just like any other shipping mode, takes a village to get each load of freight from Point A to Point B. But there are four key players in particular who make the intermodal journey happen. Without any one of these parties, a shipment simply could not successfully navigate this road and rail combination.
The Shipper (or BCO)
No freight would travel via any mode if there were no shipper providing it. The shipper is the company that owns the goods or products being shipped. Shippers are also referred to as BCOs (or beneficial cargo owners), and shipments must have a designated BCO to travel via domestic intermodal.
An entity that fits this definition could be a manufacturer, a traditional or hybrid retailer, an eCommerce provider, an importer/exporter, a farmer, a raw material supplier or fall into a few other categories - both business and non-profit. Regardless, there must be freight to move for a freight move to occur, intermodal or otherwise.
The Class 1 Railroad
Another especially important player in intermodal transport is the class 1 railroad. Class 1 railroads take the intermodal load on the long-haul (optimized at 700 mile or more) portion of its shipment. The rail element is what provides the greatest benefits for shippers considering intermodal, including cost savings, security and a lighter environmental footprint.
As of 2024, there are seven class 1 railroads operating in the U.S., a number which includes the passenger-only Amtrak. So here are the six class 1 freight railroads:
Class 1 railroads do not make up all U.S. rail traffic, as there are additionally class 2 railroads - also known as regional railroads, and class 3 railroads - also known as short line railroads. However, class 1 railroads are essential for almost all intermodal shipments to take cargo on the long haul.
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The Drayage Carrier
While railroads cover a substantial amount of ground across the U.S., most shippers - and their recipients - do not double as rail terminals. The drayage carrier, also known as an intermodal trucking company, bridges the gaps on the journey and allows for a door-to-door intermodal shipment. Just as the railroad handles the long haul, the dray truck handles the short haul portion. That short haul is ideally 50 miles or less, though there is room for longer depending on the scenario.
Regardless, there is typically a drayage carrier at the origin and a drayage carrier at the destination in an intermodal shipment. These dray trucks are equipped with special chassis to carry intermodal containers loaded by the shipper to the nearest rail hub, where they are then transferred onto the train. At the end of the long haul, a crane then takes the containers off the train at the ramp and unloads them onto more waiting dray trucks, which then bring them to their final destination.
The IMC
The IMC, or intermodal marketing company, handles all intermodal freight bookings. As class 1 railroads do not deal with shippers directly, the IMC is the go-between that creates a seamless point A to point B experience for the shipper. IMCs purchase capacity from the railroads and book first mile and final mile drayage to align with shippers' needed lanes - typically using intermodal equipment from multiple sources as well.
The shipper - which is designated as noted above as a BCO - then only deals with the single entity of the IMC, making the experience similar to booking a long haul load with a trucking company. The IMC ensures all bases are covered, serves as the point of contact for the shipper (and carriers), and delivers a single invoice to the shipper. It has direct relationships with the railroads - as not just any freight broker can book intermodal loads - and importantly, provides customer service in the form of support, shipment tracking/visibility and reporting to help shippers monitor effectiveness.
Conclusion
There are plenty of unsung steps and parties on top of these four key players, but they cover the essentials of intermodal transportation. If you're looking for more information about intermodal, follow us here on LinkedIn or stop by our website and request a quote if you'd like to explore adding it to your freight strategy.