Over the Road vs Intermodal

According to Logistics Management magazine many over the road trucking companies are considering or in process of converting operations to intermodal.  There is no question that more traditional truckload and LTL traffic, especially longer haul, is moving on the rails. While these changes can result in significant cost savings and efficiencies, the barriers to conversion are formidable.



Elements of Intermodal

  • TOFC/COFC   piggyback
  • Landbridge
  • Efficiencies compared to OTR
  • Changing OTR role to more regional service
  • 3PL’s to coordinate movement via multiple modes
  • Mode choice function of total cost, accessibility, speed, capabilities

KPI’s for both OTR and Intermodal

  • Correct Invoicing
  • On Time Delivery
  • % damaged shipments
  • Equipment availability
  • Turndown ratio

OTR Issues

  • Driver shortages
  • Tight capacity
  • Fuel costs
  • Rationalize demand/supply

OTR Advantages

  • Flexibility/accessibility
  • Speed
  • Best option up to 600-700 miles

Trends in OTR

  • TL carriers getting into Intermodal business
  • Shortening length of haul to best use assets (trucks and drivers) and reduce fuel costs
  • Comparison w/Intermodal measured by miles (600-700) or “1 driver, 1 day”

Contact Ad Hoc Logistics for details about:

  • Intermodal and OTR Customer Requirements for all companies and specific requirements for small, medium, and large shippers
  • Barriers to conversion from OTR to Intermodal