what is intermodal marketing companies role in transportation
Intermodal shipping is a method of moving cargo that involves more than one kind of transportation, whether truck, rail, ship or plane. It uses special containers so goods can be transferred from ship to rail to truck without having to be repacked. The most common combination used is truck and rail. In a typical example, cargo is picked up at the point of origin by truck, transported to a loading site onto a train and shipped the majority of the distance by rail, and then unloaded and transported by truck to the final destination. A major benefit of this arrangement is lower fuel costs, as trains are around three times more efficient than long-haul trucks[1]. Drawbacks include less flexibility, as firms are limited to places where there are train routes, and slower shipping times. Rail intermodal moves totaled 14,078,952 in 2007[2].
The transportation industry depends on a healthy economy to keep goods moving around the country. When consumer demand falls, fewer goods are shipped and intermodal shipping companies lose revenue. Another factor that will affect transportation firms is fuel costs. In the short term, rising gas prices will increase demand for intermodal services, as they are more efficient than trucking alone.
Intermodal marketing companies are growing in recent years, as they provide flexible and cost-effective shipping both domestically and internationally. Most IMC companies engage in contracts with third-party shippers, and provide all transportation and logistics services for the company that hires them. Often, an IMC company will require a minimum number of shipments from a client, to guarantee that shipping equipment will be available.
When you're reviewing intermodal marketing companies (IMCs) for beginners, following this process will help you determine whether intermodal shipping is for you, and will also help you find the right intermodal shipping company:
1. Understand what IMC companies do to see if they can meet your business needs.
2. Explore the cost savings your business can gain through intermodal shipping.
3. Choose an IMC company with strong credentials, if you decide that intermodal shipping is a good match for your needs.
Understand the role of an intermodal marketing company
Intermodal marketing companies do more than just transport goods from one place to another. Instead, they offer a comprehensive transportation and logistics solution by providing containers when necessary, and transportation by multiple methods, including water, air and land transport.
Hofstra University has an excellent overview of intermodal transportation that includes a discussion of methods and costs. It also compares intermodal transport to multimodal transport.
Determine the cost savings that IMC companies can provide
Because an intermodal marketing company provides a single-party solution to shipping needs, it can result in cost savings for your company. This is especially true if you need to use multiple forms of shipping to get your product to its destination. Intermodal Marketing Companies help in transportation of goods and products. They provide containers, locomotive power and the particular vehicles needed to transport goods. They also handle privately owned containers. They provide land, water and air transport. The intermodal services have witnessed strong growth in the last twenty years.
The intermodal marketing companies cannot however be equated with the common transportation industry. These companies are much rather institutions that are needed to produce and market a service to a customer. Intermodal is a form of coordinated transport of articles in trailers or containers by mainly truck or rail.
A close look into the industry reveals that between 1980 and 1998, rail intermodal traffic grew very fast and it witnessed a severe slump in 1995-96, but the situation has been revived now. Intermodalism is a combination of the economic line haul capabilities of rail roads and ocean shipping with the accessibility of trucks.
The major problems bugging the industry has been coordination and channel leadership. In the international intermodal channel, ocean carriers have been the undisputed leaders but in the domestic markets there has not been any clear leaders.
There is a lot of conflict between the intermediaries in this sector. The channels of distribution are either direct with no external intermediaries or indirect with the use of intermediaries.
The intermodal marketing companies cannot however be equated with the common transportation industry. These companies are much rather institutions that are needed to produce and market a service to a customer. Intermodal is a form of coordinated transport of articles in trailers or containers by mainly truck or rail. A close look into the industry reveals that between 1980 and 1998, rail intermodal traffic grew very fast and it witnessed a severe slump in 1995-96, but the situation has been revived now. Intermodalism is a combination of the economic line haul capabilities of rail roads and ocean shipping with the accessibility of trucks.
The major problems bugging the industry has been coordination and channel leadership. In the international intermodal channel, ocean carriers have been the undisputed leaders but in the domestic markets there has not been any clear leaders. There is a lot of conflict between the intermediaries in this sector. The channels of distribution are either direct with no external intermediaries or indirect with the use of intermediaries.
Locate a reputable IMC company for your business shipping needs
If you're just starting to use IMC companies, you'll want to start your search by seeking out intermodal companies with professional affiliations and strong reputations. That way, you know you're entrusting your shipping to a reliable company.
