Ocean and Intermodal Logistics – Quicker and Cheaper Movements of Your Goods
The logistics industry has encountered recent trends that have caused significant disruptions and sparked an evolution in how goods are transported worldwide. Challenges like disasters, unpredictable markets, and heightened customer expectations have necessitated the development of more economical transportation solutions. Combining ocean and intermodal logistics presents a promising strategy to confront these challenges head-on. By fusing the advantages of sea freight with other terrestrial transportation methods, businesses can see expedited transit periods while significantly reducing their expenses.
Exploring Ocean and Intermodal Logistics
When it comes to international trade, the role of logistics is critical. With intensifying competition, businesses are pressured to expedite their delivery times while reducing expenses. This is where the significance of ocean and intermodal logistics comes into focus.
Understanding Ocean Logistics
Ocean logistics refers to the management of goods transportation via sea routes. It encompasses the planning, coordination, and control of this process. Since nearly 90% of all cargo is transported by sea, it’s a crucial element of global commerce.
Sea freight is often preferred for transporting heavy and bulky items due to its cost efficiency and large capacity. It serves as a vital link, connecting markets across diverse geographies and enabling businesses to broaden their consumer base while penetrating new markets.
Different Methods of Ocean Shipping
Ocean shipping remains a fundamental pillar of worldwide trade. It consists of three categories – container, bulk, and roll-on/roll-off shipping, each with unique applications, benefits, and drawbacks.
Container Shipping
Container shipping optimises the transport of goods using standardised containers. These containers, typically available in 20-foot and 40-foot variations, are designed specifically for easy loading, stacking, and unloading. They facilitate smooth transitions between different transportation modes, including container ships, rail, and semi-trailer trucks, simplifying long-distance shipping.
The primary benefit of container shipping lies in its security features. The containers are sealed, safeguarding the cargo against damage and theft. Additionally, it streamlines logistics operations as containers can be easily tracked, loaded, and unloaded.
However, container shipping may not suit all types of goods. Certain items may not fit into standard-sized containers, and this option might not be the most cost-effective if you don’t require a full container due to other weight and transport costs.
Bulk Shipping
The transport of mass commodities, also known as bulk shipping, involves moving large quantities of homogeneous cargo, like coal, grains, or oil. The entire volume of goods gets directly loaded into the ship’s hold for a consolidated journey.
This method of shipping offers an economical solution for goods that don’t require quick delivery or individual packaging and are uniform in nature. It is an ideal choice for transporting large quantities of merchandise from one point to another.
However, bulk shipping comes with its own set of challenges. The lack of protective packaging can increase the risk of damage. The loading and unloading process is time-consuming and requires specialised machinery, adding to the cost of transport and receiving.
Roll-on/Roll-off (RoRo) Shipping
Vehicle and equipment transfer, popularly known as Roll-on/Roll-off or RoRo shipping, is a technique where vehicles and machinery are driven onto and off the ship. The term “RoRo” is derived from the ease with which these vehicles can ‘roll on’ to the ship at the starting point and ‘roll off’ at the destination.
RoRo shipping is the preferred way of transporting automobiles, trucks, trailers, and railway carriages across sea routes. It provides a secure and efficient method for moving wheeled and heavy-lift cargo, which would otherwise be challenging to load and unload using cranes.
The primary drawback of RoRo shipping is its limitation in handling general cargo that cannot be rolled on and off the ship. Moreover, the availability of routes and schedules for RoRo ships may not be as extensive as those for container ships.
Benefits of Integrating Ocean and Intermodal Logistics
Intermodal logistics, when combined with ocean shipping, amplifies cost-effectiveness, making it an optimal solution for transferring large quantities of goods across various locations.
Below are some of the advantages of leveraging ocean and intermodal logistics:
Enhanced Efficiency
Combining ocean freight with intermodal logistics significantly enhances operational efficiency. Ocean freight allows for transporting large amounts of goods across different continents, which is ideal for international commerce. In tandem, intermodal logistics ensures a seamless shift of these goods from maritime ports to inland destinations via rail or truck.
Intermodal containers enable a smooth exchange between ships, trains, and trucks, negating the necessity to unload and reload cargo at every changeover point. This expedites the shipping process and diminishes the potential risk of damage to goods, leading to an overall improvement in efficiency.
Reduced Expenses
The fusion of ocean and intermodal logistics also brings substantial cost savings. Ocean freight is recognised as one of the most budget-friendly methods for transporting heavy and sizeable goods over extensive distances. Businesses can also cut down on “final mile” delivery expenses when integrated with intermodal logistics.
By capitalising on the strengths of diverse transportation modes, businesses can fine-tune their shipping strategy based on cost considerations. For example, they could utilise sea freight for long-distance hauls due to affordability, then transition to rail or truck for delivery to the ultimate destination, depending on which option is more cost-effective.
Improved Flexibility and Scalability
Employing ocean and intermodal logistics offers enhanced flexibility and scalability. Businesses can deploy various transportation methods to adjust their shipping plan in response to factors such as cost, delivery speed, and environmental footprint.
Adopting this approach empowers businesses to scale their operations upwards or downwards based on market demand. During high-demand periods, they can exploit ocean freight’s high capacity and intermodal logistics’ versatility to manage increased volumes. Conversely, they can downscale their operations during slower periods without incurring significant cost repercussions.
Maximise Your Business Potential with Ocean and Intermodal Logistics
By harnessing the power of the ocean and intermodal logistics, businesses can significantly elevate their shipping operations. Through a strategic blend of diverse transportation modes, companies can substantially reduce costs, increase efficiency, and remain more adaptable to changing market demands.
Author Bio:
David is CEO of DB Schenker North America, a 150 year old leading global freight forwarder and 3PL provider. David Buss is responsible for all P&L aspects in the North America region, which is made up of over 7,000 employees located throughout 39 forwarding locations and 55 logistics centres.