Intermodal Freight

Intermodal freight transport uses standardized containers – typically 53-foot domestic containers or 20/40-foot ISO containers – that move seamlessly between rail and truck without the cargo itself being handled at transfer points. The most common domestic intermodal move is truck-rail-truck: a drayage carrier picks up the loaded container, delivers it to a rail terminal, it rides the train for the long-haul segment, and another drayage carrier makes the final delivery. The cargo stays sealed in the same container throughout.

The economics of intermodal favor longer hauls – generally 500+ miles – where rail's cost-per-mile advantage over truck is large enough to offset the added drayage legs and slightly longer transit times. For lanes over 1,000 miles, intermodal can save 10–20% compared to over-the-road FTL. The tradeoff is speed and flexibility: intermodal transit times typically run one to two days longer than truck, and service is subject to rail schedules and terminal congestion. It's a mode best suited for shipments where cost matters more than speed and lead times are predictable.

Intermodal also carries a sustainability advantage. Rail produces roughly 75% fewer carbon emissions per ton-mile than truck, making it appealing for shippers facing pressure to reduce their transportation carbon footprint. Many CPG and food companies are actively shifting eligible lanes to intermodal for both cost and ESG reasons.

The key to using intermodal effectively is having it surface as a viable option during rate shopping – not siloed in a separate quoting process. When intermodal rates appear alongside FTL and LTL quotes for every eligible lane, shippers can make informed mode decisions based on cost, transit time, and service requirements rather than defaulting to truck.