Want lower freight costs? Without compromising speed or reliability?
Container logistics solutions are revolutionizing how businesses ship freight coast-to-coast. And most businesses haven’t even noticed yet.
But the ones that have…
They’re saving big money each month.
Here’s how:
- What Are Container Logistics Solutions?
- Why Freight Costs Are Quietly Killing Businesses
- Freight Solutions That Are Actually Working
- How To Pick The Right Solution For You
What Are Container Logistics Solutions?
Container logistics solutions refer to freight strategies that use standardized containers to ship goods across multiple forms of transportation — think rail, road, and ocean freight.
Intermodal shipping is the most impactful version of this solution. Rather than relying solely on trucks to transport freight from point A to point B, intermodal solutions rely on trains as well.
Moving freight via container through multiple modes of transportation is where partnering with an intermodal service provider like Cornerstone Systems can make a real difference in container logistics. Their team specializes in working efficiently across shipping methods — which means businesses benefit from cost savings of rail transport with the flexibility of truck delivery at both ends of the trip.
And businesses that do this are saving money.
Intermodal spot rates ran 23.4% below truckload in Q2 2024, according to the Journal of Commerce Intermodal Savings Index. That’s the largest margin between truck and intermodal shipment costs that JOC has ever recorded for the second quarter.
Makes sense to look into further, right?
Why Freight Costs Are Quietly Killing Businesses
Let’s touch on a hard truth about running a supply chain right now…
Freight costs money. A lot of money.
And it’s only going to get more expensive.
The issue?
Nine times out of ten, businesses just truck their freight. It’s what they always do. It feels easy. But the costs associated with this default decision are exploding:
- There is a major driver shortage driving up trucking rates
- Fuel prices skyrocket then plummet with no warning
- Capacity shortages create sporadic spikes in spot rates
According to the Council of Supply Chain Management Professionals, transportation makes up 66% of total logistics expenses. If two-thirds of a logistics budget goes to freight, that means the container shipping strategy holds the biggest key to the bottom line.
And the businesses quietly thriving are rethinking their container logistics strategies from the ground up.
Freight Solutions That Are Actually Working
There is no silver-bullet strategy that will work for every business. But there are a few container logistics solutions that are helping businesses save right now.
Intermodal Shipping
The big one.
Rail offers huge cost savings for long distances combined with truck deliveries on either end. Containers aren’t opened until they reach their final destination — so there’s:
- Less handling of cargo at transit points
- Drastically lower rates of cargo damage
- Minimal surprise accessorial charges when compared to truck freight
Intermodal shipping saves money any time freight has a trip length of over 700 miles. Plain and simple.
Rail just moves more freight per gallon of fuel than trucks. That reduces costs per mile dramatically. Recent studies have found that shipments of over 500 miles can see savings of up to 40% when using intermodal vs truck freight.
Businesses have already caught on. Intermodal shipping volume increased by 8.5% in 2024, according to the Intermodal Association of North America.
There’s an environmental impact here, too. The EPA estimates intermodal shipments can reduce greenhouse gas emissions by up to 65% when compared to truck-only transport. Those savings can make a real difference for business sustainability goals.
Container Routing Strategy
There’s another piece of the container logistics puzzle that flies under the radar for most people…
The route.
Most shippers accept their freight broker’s recommendation for shipping lanes and don’t look twice. That’s a mistake. Looking at different routes with various transit times is the way to find the best value.
It can work like this:
- List the 5 most common shipping lanes
- Request truckload and intermodal quotes on each lane
- Compare realistic transit times between modes
- Create a customized lane strategy from there
That instantly separates a business from the ones mindlessly overpaying on freight.
Visibility and Tracking Options
Here’s a complaint that used to come up about intermodal a lot:
“What about shipment visibility? If it goes on the rails, I can never find it.”
Well, those days are gone.
Technology platforms now allow for tracking across both truck and rail segments of the shipping journey. Shipment receivers and warehouse managers can plan around precise delivery windows.
That means:
- Better inventory planning all around the supply chain
- Less expedited freight to meet unexpected shortfalls
- More accurate commitments to customers
When visibility into container shipments improves, the whole supply chain operates more smoothly. And smoother supply chains equal lower operational costs.
Consolidation/LCL Shipping Strategies
Here’s a little trick lots of shippers aren’t thinking about…
Freight doesn’t always need a full container. What’s known as an LCL (Less-Than-Container) strategy allows a shipment to share container space with others. Ideal for:
- Regular shipments that don’t quite fill a container
- Businesses wanting to trial a new lane or market
- Seasonal freight that peaks then drops throughout the year
LCL can reduce wasted space in container shipments and save money on per-unit shipping costs.
How To Pick The Right Solution For Your Business
Every business has unique needs when it comes to container logistics. But there are a few guiding questions that can help identify what will work:
- Average shipment distance: At what mileage does intermodal become more effective?
- Truckload vs. Intermodal: 251+ miles
- Where are freight volumes the highest? The more freight there is, the better rates can be negotiated.
- Truckload vs. Intermodal: High Volume = Increased Negotiating Power
- How flexible are transit times? Rail shipments take longer, which means lead times need to be planned differently than trucking-only solutions.
- Truckload vs. Intermodal: Intermodal requires more lead time planning
- How much is being spent on freight? The more money going out, the more room there is to save.
The best way to tackle freight spending is to review current costs, identify the top 5 lanes, then try one new strategy at a time.
Let’s Review: Freight Solutions That Are Working
Container logistics solutions aren’t rocket science.
They really come down to one thing. Moving freight efficiently.
To be more specific:
- Use intermodal when possible to decrease spending
- Audit lanes and see where optimization is possible
- Invest in visibility tech to increase efficiency
- Utilize Less-Than-Container shipping tactics when possible
Businesses that have already begun leveraging these tactics are saving thousands of dollars per month.
They didn’t need to overhaul their entire freight program. They just started thinking about container logistics differently.
