The past few years have had unprecedented disruptions within supply chains because of volatile global markets, pandemic lockdowns, increased customer demands, and bottlenecks at ports.
Despite positive signs of improvement, some of these complex obstacles are slow to correct. And as some issues begin to resolve, new issues come up that create additional challenges.
Logistics companies need to find innovative ways to move goods in a cost-effective and rapid way to meet the demands of their customers. Ocean and intermodal logistics offer a solution by combining freight transportation with trucking or rail services.
Delays in the Supply Chain
The global supply chain has had many obstacles to overcome, including ongoing delays caused by the pandemic, war and conflict in different parts of the world, and skyrocketing fuel costs. There are also disruptions that come from discontinued products or lines, as well as labor shortages.
Together, these factors become a perfect storm of issues that affect the entire supply chain, leading to lengthy delays and increasing costs all over the world.
To address the supply chain disruptions, businesses are seeking ways to move goods in more efficient ways, while still meeting the growing demands of consumers. One of the best solutions is ocean and intermodal logistics.
The primary modes of transportation in logistics are ocean, truck, train, and plane. Intermodal logistics combines these options strategically according to the requirements of the shipment and the transportation’s capabilities.
Still, it’s important to understand the advantages and disadvantages of each mode of transportation to optimize the shipping process properly.
Ocean Transportation
Ocean transportation is a big part of the supply chain on a global level. It accounts for over 90% of all trade, particularly with heavy or bulk shipments. Ocean transportation is among the most cost-effective types of transportation and offers plenty of capacity for cargo. Ship routes are also less risky in terms of damage, as they operate within predetermined routes with minimal handling.
But ocean transportation does have a disadvantage – it’s slow. Ships take much longer to reach their destinations compared to air freight, so they’re not ideal for time-sensitive shipments. Still, it’s a key component of the supply chain to handle goods that are large and not time-sensitive.
Ocean transport can be combined with intermodal shipping to create an ideal balance of cost and time. Goods can move quickly and reliably with lower costs, reducing the burden on the global supply chain and improving efficiency.
Intermodal Shipping
Intermodal shipping is an innovative solution that combines a few modes of transportation to optimize the transport of goods to their destination. This is especially helpful when shipments have to travel to distant locations, as businesses can choose the most timely and cost-effective option for individual shipments.
By combining the speed of air, the capacity and affordability of ocean freight, and the middle ground of truck shipping, businesses can ensure the rapid delivery of goods for those that need it while optimizing speed and costs elsewhere.
Another benefit of intermodal shipping is that it makes good use of available resources with a single transfer point for a variety of shipments. In most cases, products are within one shipping container for the whole process, or they may transfer from one container to another. This limits delays with stops along the transit routes and improves utilization, creating a more reliable supply chain network.
Finally, intermodal logistics can be a lifesaver during peak periods or high-volume seasonal periods, which tend to have a significant rise in shipping. For many businesses, these periods make up a large portion of annual sales, so they can’t afford to have delays or problems that negatively impact their shipping.
Intermodal shipping provides flexibility in choosing the best option for shipments in terms of transit speed and costs, but it can be difficult for some businesses to navigate. There are different restrictions for different modes of transportation.
For example, a shipment may be suitable for ocean or rail shipping but restricted from air travel. Without this knowledge, all the benefits of intermodal shipping can be lost in additional delays or problems, which is why it’s important to work with a logistics partner with experience in intermodal logistics.
Optimize Your Supply Chain with Ocean Transport and Intermodal Shipping
Combining ocean transportation and intermodal shipping supports efficient global supply chains that are reliable and cost-effective. By understanding the benefits and drawbacks of each shipping option, businesses can ensure their goods are delivered safely, affordably, and on time while making the most of their resources.
The supply chain issues aren’t expected to let up any time soon, at least not completely. Businesses have to adapt and get creative with innovative and agile supply chain networks that offer reliable deliveries without exorbitant costs – effectively finding that perfect balance between cost and time.
