Intermodal shipping is a key link in the global supply chain. It connects continents, fuels industries, and drives economic growth. But the industry is under pressure. Rising demand, fluctuating market conditions, and new regulatory requirements are creating challenges that demand innovative solutions.
The State of the Intermodal Shipping Market
The global intermodal shipping market is in a state of flux. Trade volumes continue to grow, yet economic uncertainties have made long-term planning difficult. Supply chain disruptions, labor shortages, and geopolitical tensions have further complicated operations.
Key Challenges Include:
- Unpredictable Demand: Rapid shifts in consumer behavior have led to unpredictable shipping volumes. According to industry reports, global container volumes saw significant fluctuations in the past year due to post-pandemic recovery patterns and changing trade policies.
- Congestion: Many terminals, particularly on the West Coast, are struggling with high utilization rates, creating bottlenecks. The Pacific Northwest alone saw container volumes jump 83% in July, based on year-over-year data.
- Rising Costs: Decreased utilization, increased operational expenses, and higher maintenance costs are straining budgets. J.B. Hunt, for example, reported carrying $100 million in additional operating costs earlier this year, mostly due to excess capacity.
Despite these challenges, opportunities exist. The growing demand for e-commerce, projected to grow at an annual rate of around 15% through 2030, has created a need for faster and more flexible shipping solutions. The push for nearshoring and reshoring of manufacturing also presents new opportunities for domestic intermodal networks.
To thrive, terminals must focus on streamlining operations and enhancing flexibility. Proactive measures such as diversifying cargo, developing partnerships with railroads, and leveraging advanced forecasting tools can help mitigate delays, control costs, and improve overall performance.
Leveraging Technology in Intermodal Shipping
Technology is revolutionizing the intermodal shipping industry and driving new levels of efficiency and reliability. Terminals who stay ahead of the technology curve will keep themselves in the best position to grow in 2025. They’ll do it with technology like:
Comprehensive Data Management Platforms
Advanced platforms now provide stakeholders with near real-time and historical data, improving decision-making. These tools standardize and secure data, offering a 360-degree view of terminal operations. With user-configurable dashboards and seamless integration with other systems, terminals can ensure data accuracy while enhancing transparency and productivity.
Modern Terminal Operating Systems (TOS)
Next-generation TOS solutions empower terminals to adapt to customer demands with precision and ease. Features like real-time rail planning, extensive reporting tools, and flexible yard planning enhance operational efficiency and boost workforce productivity.
Integrated Yard Planning Tools
Comprehensive yard planning tools optimize container placement, maximize yard space, and reduce turn times. Automated solutions for container location assignments provide operators with the ability to control exceptions to avoid costly rehandles and set asides.. These tools also provide detailed scheduling and alert planners to potential issues, enhancing overall terminal efficiency.
Predictive Maintenance Programs
Investing in predictive maintenance technology can help terminals stay ahead of equipment failures, reducing downtime and ensuring seamless operations. By utilizing sensors and AI-driven analytics, terminals can address potential issues before they escalate, safeguarding efficiency and profitability.
Fostering Collaboration Across the Supply Chain
Thriving in a dynamic intermodal market demands a commitment to strong partnerships. Marine terminals that align closely with shippers, railroads, and logistics providers can reduce delays and improve operational outcomes.
Developing stronger partnerships is a matter of consistency and transparency. Strategies like these will make sure you get off on the right foot:
- Transparent Communication: Sharing real-time data and holding regular coordination meetings to ensure alignment during peak demand periods.
- Joint Problem Solving: Partnering with stakeholders to develop shared solutions to address inefficiencies and improve terminal performance.
- Technology Integration: Using compatible platforms that enable seamless data exchange across the supply chain.
Collaboration is great for any business, but it’s absolutely critical for anyone trying to manage the changing intermodal shipping market. The right collaboration strategy is a competitive differentiator in an increasingly interconnected industry.
Embracing Sustainability to Attract Partners
Sustainability is no longer optional for terminals looking to maintain market position. Customers and stakeholders increasingly prioritize eco-friendly practices, and terminals must adapt to stay competitive.
Initiatives like these will keep your terminal aligned with market expectations:
- Electrified Equipment: Replace diesel-powered machinery with electric alternatives to reduce emissions.
- Renewable Energy Adoption: Incorporate solar or wind energy to power terminal operations.
- Waste Reduction Programs: Optimize workflows to cut down on waste and unnecessary resource use.
By leading with sustainability, terminals can attract partners that value environmentally responsible practices, positioning themselves as forward-thinking and adaptable.
Investing in Workforce Development
Even the most advanced systems can falter without a well-trained workforce to operate and manage them. Terminals should prioritize continuous education and skills development to align employees and their partners with evolving processes and technology.
Workforce development efforts might include cross-functional training, technology-specific education, or safety and compliance refreshers. Consider working with an outside vendor to provide these services at a cost-effective rate.
No matter how you go about it, make sure your training is modern and purposeful. Your goal is not just to improve your bottom line but also to help your employees adjust to the same challenges you’re facing as a leader.
Partner with a Forward-Thinking Technology Company
The intermodal shipping industry faces a landscape of both challenges and opportunities. Terminals that embrace collaboration, prioritize sustainability, and invest in their workforce are better equipped to thrive.
Partnering with the right technology provider can amplify these efforts.
Tideworks delivers innovative solutions that empower terminal operators to navigate complexity, improve efficiency and performance, and capitalize on emerging trends.
Reach out to Tideworks today to learn how we can help your terminal meet the demands of the future with confidence.