Intermodal Services Trending Upwards

May 31, 2018 | Services | 0 comments

Companies are turning to intermodal services in an effort to reduce costs and better the environment.

The supply chain industry is rapidly changing and one of the most interesting trends is the use of intermodal services. Whereas a few years ago using a single freight service, like trucking, was the norm, the recent driver shortage and increased fuel prices has pushed companies to change their strategy.

The results have been nothing but positive. Intermodal services are being adopted by many within the industry because of its ability to cut costs and reduce negative effects on the environment.

There are a number of reasons for intermodal services’ successful impact on the supply chain industry, but here are just a few of the main reasons it’s being universally adopted.

Why It’s Working

Intermodal services are working because it’s utilizing every possible transportation method in order to save companies time and money. That means taking full advantage of sea, air, truck and train. Rather than submit to a rigid trucking schedule, or risk failing to reach clients on-time through sea freight alone, many within the industry are adopting a more balanced approach.

The main agent in this strategy is rail freight, which has proven to be more environmentally friendly. On average, trucks emit nearly 20 lbs of CO2 per 100-ton miles, whereas a train will only emit roughly 5 lbs over the same distance. In an age where companies are trying to be more eco-friendly, the benefits are hard to ignore.

Environmental benefits aside, intermodal services has a direct impact on cost and transportation efficiency. The primary reason being that less money is being invested in trucking services, which also means less drivers hired.

But the cost benefits go beyond that, as well:

1. Lower rates

2. Predictable pricing

3. Reduced handling costs

Transportation efficiency has skyrocketed for a number of reasons, too. While trucks remain useful within the industry, limiting their use has boosted on-time delivery and transportation security. Companies are no longer hampered by the inconsistent nature of highway transit. The odds of being slowed down by bad weather conditions is greatly reduced, there are less road accidents, you eliminate the slow process of going through border documentation, and increase chances of avoiding congested roads.

Other efficiency benefits include:

1. More reliable transit times

2. Reduced weekend stoppages

3. Reduced noise pollution

Transportation services are becoming more expensive every year, largely due to increased fuel costs, government regulations and increased customer demands. Therefore, adjusting your strategy and adopting an intermodal service approach, you’ll help combat these additional transportation costs. Creating a new strategy won’t be done overnight, but using intermodal services will help streamline your supply chain services by simplifying transportation.

Oceanstar by Seldat has built a favorable reputation as a global transportation logistics and procurement partner over many decades. We provide the advice and supply chain management you need, whether it be for the procurement of products or the transportation of cargo via ocean, air, trucking, or rail. Click here to learn more about our network and contact us if you would be interested in speaking with an Oceanstar representative.

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Paul Conolly

Paul leads the Executive Team for the Oceanstar Group. Prior to founding the company, Paul enjoyed a distinguished career with OOCL–both at sea and ashore. At sea, Paul rose through the ranks to become OOCL’s youngest captain at the age of 27. After coming ashore, he held key management positions in both Asia and North America. Paul’s greatest strengths are his industry experience, critical thinking, and his leadership that extends to developing people and building robust teams and partnerships. Paul is a lifelong learner who is actively involved in supporting education. He has served on a number of non-profit Boards in the past, including the Waldorf School of Orange County, and is currently on the Board Of Trustees for the Association Of Waldorf Schools Of North America. Paul is married with two children and is an avid soccer fan.

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James Conolly

James oversees financial planning, manages risk, and evaluates strategic growth opportunities for Oceanstar as well as liaising with existing and potential investors. Prior to joining the company, James worked in banking, most recently with Barclays Investment Bank. During his 18-year banking tenure, James worked across multiple industry sectors, including Transportation and Logistics where his consultative approach to financial risk management has safely steered many companies through turbulent market conditions. James relocated from the UK to Southern California in April 2016 with his wife and two children and has wasted no time in learning to surf.

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Cara Conolly

 

Cara guides the Oceanstar team in the realm of Human Resources, operations, and payroll. Co-founder of the company, she draws from her many years as an educator and her studies in psychology to help develop the potential of each member of the team. Cara’s greatest strengths are her strong business acumen, solution-based orientation, and real connection to people. Cara loves cooking, hiking, traveling, and spending time with family and friends. She is married with two children.

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Irene Lim

Irene Lim spearheads Oceanstar Group’s Sourcing division with responsibility for all aspects of the business including sourcing, trading, import/export, and logistics. Prior to joining Oceanstar, Irene was the Export Sales Manager for ARC Air Logistics. A veteran, with over 30 years of experience in commodity sales, sourcing, and freight forwarding, she brings extensive knowledge, a true sense of urgency, negotiating prowess, and well-established contacts that enable her to execute seemingly impossible deals. Because helping and serving others is her passion, Irene makes herself available to her customers with full dedication. Irene loves to cook, spend time with her three daughters, and unwind with her DVR.

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Logan Moore

Logan manages Oceanstar’s Global transportation division with responsibility for business development, agency alignment, staffing, and regulatory oversight. Most recently, he served as a Director of International Pricing at Suddath Global Logistics. Logan began his 30-year freight forwarding industry tenure as an import documentation runner and warehouse employee. Through his advancement, he has learned every aspect of the business while building steadfast relationships. Logan’s nuanced industry knowledge and exceptional negotiating skills benefit Oceanstar’s partners at every turn. Raised in Chicago with a particular love for the game of baseball, Logan was a long suffering Cubs fan but with the Cubs ending a 108 year drought his loyalty has finally paid off.

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Paul Conolly

Paul leads the Executive Team for the Oceanstar Group. Prior to founding the company, Paul enjoyed a distinguished career with OOCL–both at sea and ashore. At sea, Paul rose through the ranks to become OOCL’s youngest captain at the age of 27. After coming ashore, he held key management positions in both Asia and North America. Paul’s greatest strengths are his industry experience, critical thinking, and his leadership that extends to developing people and building robust teams and partnerships. Paul is a lifelong learner who is actively involved in supporting education. He has served on a number of non-profit Boards in the past, including the Waldorf School of Orange County, and is currently on the Board Of Trustees for the Association Of Waldorf Schools Of North America. Paul is married with two children and is an avid soccer fan.

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