3 Ways Intermodal Freight is the Eco-Friendly Solution to Freight Volatility

The freight industry is subject to volatility, with the supply and demand of freight movement fluctuating over time. This creates peaks and valleys that affect the profitability and efficiency of both the trucking and rail industries. Intermodal optimization is a promising solution to reduce volatility and lower overall system costs.

In Optimizing rail and truck as freight partners, Rick Mihelic reports how "Increasing use of railroads in moving freight has a moderating effect on volatility. Focusing rail on long distance hauls where it clearly has fuel economy advantages, while getting trucks to do the first and final mile hauling, has the potential to minimize freight supply and demand troughs. A more stable and predictable freight system using both rail and truck means lower operating costs for all."

Incorporating intermodal into your supply chain will align with Catalyzing Clean Energy Industries and Jobs through Federal Sustainability order for Zero-Emissions by:

• Reducing highway congestion: Railroads can move a ton of freight four times farther than trucks on a gallon of fuel, which means less traffic and less road emissions.
• Lowering greenhouse gas emissions: Railroads account for only 2.1% of U.S. transportation-related greenhouse gas emissions, while trucks account for 23.3%. Moving freight by rail instead of trucks can reduce greenhouse gas emissions by up to 75%
• Improving fuel efficiency: Railroads have improved their fuel efficiency by 40% since 1980 and are investing in new technologies and practices to further reduce fuel consumption and emissions.

Intermodal freight transportation is a smart way to move goods across the country. It combines the best of both worlds: rail and truck. By using rail for long-haul segments and trucks for short-haul segments, intermodal can balance the supply and demand of freight movement and provide a safety valve for trucking during periods of high demand or driver shortage.

This approach can reduce fuel consumption, greenhouse gas emissions, traffic congestion, and infrastructure wear and tear while lowering operating costs and improving service reliability for shippers and carriers.

To further reduce its environmental impact and comply with stricter emission regulations, intermodal can adopt zero-emission technologies such as electrifying trucks for the first and final miles and using low- or zero-emission locomotives for the middle mile. Intermodal can also leverage digital technologies to optimize freight movement routing, tracking, and coordination.

Key Takeaways

• Intermodal Optimization as a Solution: Intermodal optimization, which involves using a combination of rail and truck transportation, can stabilize the freight industry. It reduces volatility in supply and demand, leading to lower operating costs and increased efficiency.
• Environmental Benefits: There's a significant emphasis on the environmental advantages of intermodal freight transportation. Railroads are more fuel-efficient and produce fewer greenhouse gas emissions compared to trucks. By moving more freight by rail, emissions can be reduced by up to 75%, contributing to cleaner energy goals.
• Technological Integration and Compliance: Intermodal transportation has potential to further reduce its environmental impact through the adoption of zero-emission technologies and digital optimization tools. This includes electrifying trucks for short distances and using low-emission locomotives, as well as leveraging technology for better routing, tracking, and coordination of freight movement.

This article was originally published by Kimberly Lynch on LinkedIn