Rail & Transloading = The Ultimate Shipping Power Combo
In January, I attended the Midwest Association of Rail Shippers (MARS) conference in Chicago, where industry leaders gathered to discuss key trends and challenges in freight transportation. During my many conversations with shortline railroads and our rail shippers one topic that stood out to me was the increasing role of transloading in optimizing supply chains. Transloading is on my mind a lot too as I work with a lot of shippers looking to expand their shipping-by-rail options even when they don’t have an origin/destination on a rail line. As someone who works in railcar leasing and supports the day-to-day operations of my customers shipping requirements, I hear firsthand the desire customers have to more efficiently ship in bulk. Especially as their business enters growth mode and shipping volumes surpass what truck can keep up with or what truck can do economically. The frustration happens when customers don’t have easy access to a rail line and, many times, the desire to ship bulk becomes a fantasy that the customer feels like they can never realize. This is where transloading come in. It’s also where a shortline railroad partner, transloading facility, warehouse facility, and even Class I railroad become the hero in the story!
Enter TRANSLOADING! From the time I was working at a shortline railroad supporting single car and manifest rail traffic to the time I was working for a large shortline holding company to present day working for a customer-centric railcar leasing company, transloading has helped my customers ship by rail. It’s been the winning bridge to match-up customers and give them access to rail thus making their dreams of shipping by rail a reality. Transloading has supported my customers to maximize efficiency, reduce costs, and adapt to shifting transportation needs. Think dual service and competitive options! Whether they’re moving bulk commodities, industrial products, or consumer goods, leveraging rail, truck, and even water/barge transportation allows businesses to reach more destinations while keeping freight costs manageable. I see it happen all the time and get to take part in making transloading a success!
Let’s dive into the key benefits of combining transloading with rail transportation and why it’s a game-changer for modern logistics.
One of the biggest advantages of using railroads for transportation is cost efficiency. Shipping goods by rail is often far cheaper than using trucks for long-distance hauls. Railroads can carry large volumes of goods at once, reducing the per-unit transportation cost. When transloading is used, businesses can take advantage of the railroads' lower costs for long-haul shipments, then switch to trucks for the more flexible, shorter final mile delivery, optimizing the cost-effectiveness of the entire logistics process.
In an era of increasing environmental consciousness, using rail transport instead of trucks helps reduce carbon footprints. Trains are significantly more fuel-efficient than trucks when it comes to hauling freight over long distances. For instance, trains can move one ton of freight more than 400 miles on just a gallon of fuel. By incorporating transloading into their supply chain, companies can shift freight from less efficient modes of transport to rail, cutting down on greenhouse gas emissions.
Transloading offers incredible flexibility. While rail can carry large shipments over long distances, trucks provide the ability to reach locations that are inaccessible to trains. Transloading allows companies to use both modes of transportation effectively, optimizing the entire logistics process. It also enables businesses to ship goods to remote or difficult-to-reach areas and quickly shift between transportation modes depending on need.
Railroads are ideal for transporting bulk goods like raw materials, industrial products, and agricultural commodities. Trains can handle vast amounts of freight, reducing the need for multiple smaller shipments. This is particularly beneficial for industries that rely on high-volume shipping. The added capacity of rail can also help companies respond to spikes in demand or quickly move large quantities of goods in a timely manner.
Transloading helps streamline supply chains by offering businesses more options in how to route their goods. Companies can consolidate freight from different suppliers at a rail terminal, reducing the number of shipments and cutting down on handling costs. The ability to optimize the route and mode of transportation leads to faster delivery times, improved inventory management, and lower overall shipping costs.
Trains are generally considered to be safer than road transportation. There’s a lower risk of accidents, especially with hazardous materials, which are commonly shipped via rail. The rail industry has strong safety standards, and the use of rail transportation can reduce the likelihood of cargo damage or loss that can sometimes occur with road shipments. With fewer factors contributing to delays—such as unpredictable weather and traffic—railroad shipments tend to be more reliable.
Transloading combined with railroad transportation provides a unique, efficient, and cost-effective solution for businesses involved in freight shipping. From reducing transportation costs and congestion to boosting sustainability and safety, the benefits of this strategy are undeniable. If your business is looking to optimize its supply chain, lower shipping costs, or explore new transportation solutions, I’d love to help. With my experience in railcar leasing and logistics, I can provide insights on how to integrate rail and transloading into your operations for maximum efficiency. Let’s connect! Reach out to discuss how we can tailor a rail strategy that works for you.
Warm regards,
Shannon Rodgers, Director- Railcar Services
Tealinc LLC
Mobile: (321) 361-9834
www.tealinc.com | shannon@tealinc.com