SCHNEIDER IT-200 Intermodal Integrator Instruction Manual
- August 30, 2024
- Schneider
Table of Contents
- IT-200 Intermodal Integrator
- Specifications:
- Product Usage Instructions:
- Why You Should Consider Intermodal:
- Integrating Intermodal into Your Long-Term Strategy:
- Making the Most of Your Intermodal Moves:
- Revel in the Rail Revolution:
- What are the optimal conditions for using intermodal
- How can I ensure capacity and pricing stability with an
IT-200 Intermodal Integrator
Specifications:
- Transportation Mode: Intermodal (Rail and Road)
- Optimal Conditions for Usage:
- Freight moves 300 miles or more
- Loads go to the same metro location consistently
- Shippers are within 250 miles from a rail ramp
- Loads are heavy, up to 46,000 pounds
- Secure cross-border transportation is required
Product Usage Instructions:
Why You Should Consider Intermodal:
Intermodal transportation combines rail and road for freight
optimization and diversification. It is cost-effective for
long-distance moves, heavy loads, and secure cross-border
transportation needs.
Integrating Intermodal into Your Long-Term Strategy:
1. Establish a strategic plan with an asset-based intermodal
provider for guaranteed capacity and supply chain optimization.
2. Look for providers offering promotion pricing contracts
renewed every three months for short-term stability and flexibility
in pricing.
Making the Most of Your Intermodal Moves:
1. Choose an intermodal provider carefully based on their
services, pricing, and track record.
2. Optimize your shipping strategy by diversifying
transportation modes to ensure consistent delivery regardless of
disruptions.
Revel in the Rail Revolution:
Explore the benefits of integrating rail transport into your
shipping strategy for cost-efficiency and reliability.
Frequently Asked Questions (FAQ):
What are the optimal conditions for using intermodal
transportation?
The optimal conditions include moving freight over 300 miles,
consistent deliveries to the same metro location, proximity to a
rail ramp within 250 miles, heavy loads up to 46,000 pounds, and
the need for secure cross-border transportation.
How can I ensure capacity and pricing stability with an
intermodal provider?
Choose a provider that offers promotion pricing contracts
renewed every three months. These contracts provide short-term
price stability while allowing flexibility to adapt to market
changes.
UNLOCKING A MORE OPTIMIZED TRANSPORTATION STRATEGY
WHAT YOU WILL LEARN
Three reasons to consider integrating intermodal into your long-term strategy.
Six things to look for when choosing an intermodal provider. Three ways to
make the most of your intermodal moves. Revel in the rail revolution.
WHY YOU SHOULD LOOK AGAIN AT INTERMODAL
If there’s one constant in life, it’s change, and the current transportation
market is once again showing its cyclical nature. The market is variable
enough, let alone when a major disruption — extreme weather, port congestion
or a loss of a carrier in the market — further restricts resources and
capacity.
Prior to 2024, the market has been in a state of overcapacity, and on top of
that, the transportation industry has faced high interest rates, increased
operational costs and insurance premiums, and wage inflation. Because of that
tremendous financial pressure, recent data shows that nearly 88,000 trucking
companies closed in 2023, alongside 8,000 freight brokerages1.
In addition to the ongoing financial pressures, there is a freight volume
shift approaching that will make the need to secure consistent capacity a
priority. Identifying transportation opportunities in addition to traditional
over-the-road will be imperative. The ideal time for businesses to reevaluate
the role intermodal plays in their shipping strategy is well before the market
shifts.
Intermodal moves freight via a combination of rail and road, and layering
intermodal into your transportation mix provides an opportunity for freight
optimization and diversification.
This transportation mode is cost-effective (and most beneficial) when:
LBs
Freight moves Loads go to the
300 miles same metro location
or more.
consistently.
Shippers are within 250 miles from a rail ramp.
Loads are heavy — up to 46,000 pounds.
Secure cross-border transportation is required.
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1 https://www.freightcaviar.com/carrierok-88-000-trucking-closures-in-2023/
Diversifying your transportation modes will help you hit your financial
targets more consistently and get your freight delivered — regardless of
disruptions.
While intermodal can help maximize your short-term shipping needs, it’s
critical to also understand how it can positively impact your long-term
transportation strategy and how to choose a multimodal provider that will
benefit your business.
THREE REASONS TO CONSIDER INTEGRATING INTERMODAL INTO YOUR LONG-TERM STRATEGY
Establishing a long-term strategic game plan with an asset-based intermodal
provider will help to position your freight — and business — for success. This
means an optimized (and less stressful) supply chain regardless of the in-the-
moment market conditions.
1. Competitive pricing without a long-term contract Contracts are a great way
to get guaranteed capacity locked in at a market-fair price. For some
shippers, long-term contracts can feel too restrictive. Those shippers may
turn exclusively to the spot market to continuously try and find the best
rates available. However, if the market turns, a shipper utilizing the spot
market can be left paying extreme rates to move freight, resulting in a big
hit to the bottom line. Plus, constantly turning to the spot market is a
reactive, time-consuming, transactional task that doesn’t facilitate a
proactive approach to transportation or build carrier loyalty.
But there is a way to get guaranteed capacity without the commitment of a
long-term contract:
Work with an intermodal transportation provider that offers promotion pricing
contracts that have price stability.
Work with an intermodal transportation provider that offers promotion pricing
contracts that have price stability. These contracts are renewed every three
months, providing short-term stability in pricing and allowing a shipper to
move with the market more frequently than with traditional contract lengths —
all the while knowing that capacity needs are met.
2. Diversify freight to mitigate bottlenecks and capacity constraints There
is no one-size-fits-all solution to moving freight. That’s why diversification
is an integral way to optimize freight transportation.
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Diversifying transportation modes helps spread out risk and keep freight
moving based on what’s best for a shipper’s freight needs, network and the
current market.
Diversification among transportation providers also helps a shipper find a
provider that can best service the freight according to the lanes it runs and
has scalable rail relationships within specific areas. Strategic
transportation providers can also assess your supply chain and network to find
optimizations and efficiencies, using the spot market on lanes where it makes
sense and incorporating intermodal for stability and guaranteed capacity. When
working with a carrier that offers multiple modes of transportation like
intermodal, shippers get the peace of mind that their freight is continuously
moving and efficiently getting where it needs to be.
3. Meet sustainability goals If shipping green is a priority, not only is
transportation one of the top areas of improvement for reducing your
environmental impact, but intermodal is one of the best modes to help meet key
sustainability initiatives. In fact, the average reduction in CO2 emissions
when moving loads by rail is 30%. Intermodal transportation providers that
take sustainability seriously have the ability to help you meet your green
goals through a variety of options.
Alternative fuel solutions Equipment like battery-electric trucks produce zero
direct emissions and are impactful in reducing CO2 per-mile emissions.
Schneider currently operates one of the largest battery electric vehicle
fleets in North America at the company’s Southern California Intermodal
Operations Center, featuring 92 battery electric trucks and two electric yard
spotters powered by their own charging stations.
Carbon emission reduction goals By setting its own corporate responsibility
and emissions goals, a transportation provider can help shippers find ways to
reduce emissions and work together to meet sustainability goals.
Network optimization A transportation provider can assess a shipper’s network
and suggest alternatives that reduce empty miles.
Freight consolidation As part of optimizing the network, identifying
opportunities to consolidate freight streamlines the supply chain and reduces
environmental impact.
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Intermodal transportation offers shippers a freight solution where cost,
capacity, consistency, freight security and sustainability are top of mind.
Incorporating this mode as part of a strategic transportation network can
yield big results to the bottom line, while keeping shipments from going off
the rails.
SIX THINGS TO LOOK FOR WHEN CHOOSING AN INTERMODAL PROVIDER
To get the most out of intermodal shipping and mitigate the headaches of
managing your supply chain, it’s crucial to choose an intermodal carrier that
can guarantee capacity, find efficiencies and give you more control over your
freight. Look for these key intermodal carrier traits for strategic and cost-
efficient intermodal shipping.
1. Invests in its own equipment When demand for capacity increases, so does
the demand for equipment. And when every pound and inch matters, the right
equipment becomes even more essential to maximize intermodal capacity.
Unfortunately for shippers and intermodal carriers alike, rail companies focus
more on optimizing their networks than they do supporting them with intermodal
shipping equipment.
One thing to consider is leveraging an intermodal carrier that owns and
maintains its own inventory of chassis and containers. Shippers utilizing
intermodal carriers that rely on shared chassis pools may face increased
disruption due to the uncertainty in equipment availability, consistency and
reliability.
Availability In the shared pool, the demand is often greater than the supply.
If there aren’t enough chassis available at the ramp, product will sit,
causing costly delays.
Consistency Chassis have varying weights — up to a 700-pound difference
between models. To avoid fines, shippers have to assume that they’ll get a
heavy chassis, which limits the payload.
Reliability The shared pool doesn’t guarantee peak operating condition of its
chassis, making breakdowns a common occurrence. A provider with owned assets
can be more vigilant and proactive with the maintenance of its chassis fleet.
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THE BENEFITS OF WORKING WITH AN ASSET-BASED INTERMODAL PROVIDER
Asset-based intermodal carriers invest significantly in their own chassis,
containers, tractors and drivers in order to provide safe and functioning
equipment for shippers’ loads. Having owned assets provides more reliable
service to shippers, and carriers have the ability to accommodate capacity
surges more adeptly. Schneider’s owned, custom-spec’d equipment optimizes
loads and provides more capacity, lowering he number of shipments needed and
the costs for those shipments.
Schneider improves capacity dependability:
Chassis Up to 10% increase in payload. Lightweight chassis that are 700 pounds
lighter than the
common pool chassis. Max payload is 46,000 pounds. Containers Two-plus inches
inches wider. 100.375 inch inside width vs. 98 inches. Pinwheel loaded freight
for increased capacity. Equipment maintenance Schneider has a maintenance
presence at almost all of its
rail locations, maintaining a 97% availability on chassis. Schneider has
approximately 100 service trucks that visit rail
facilities and customer locations for first priority of repairs.
More freight visibility and efficiency From the initial planning until the
load has been delivered, all of the logistics of an assetowned shipment are
controlled under one roof. On top of that, asset-based intermodal carriers
work closely with the railroads to enhance opportunities for shippers.
This can include early access and priority loading, allowing shipments to be
loaded and unloaded first. These benefits help keep cargo with a tight
deadline on schedule and give customers an advantage when moving shipments via
intermodal.
Another way Schneider offers enhanced efficiency is through Schneider
FreightPower®, an online marketplace for quoting, booking and tracking loads.
The self-service platform provides shippers with the tools they need for
complete intermodal freight management.
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2. Holds long-term, strategic relationships with rail providers When a
transportation and rail provider routinely collaborate, they develop a
strategic working relationship. But that magic doesn’t happen overnight. It’s
the result of the carrier committing to a consistent, regular volume of
freight. When the transportation provider’s network complements the rail
provider’s, the overlapping footprint makes for easier and more efficient
freight moves. Over time, the two form a mutually beneficial relationship,
which helps a carrier with securing capacity and getting freight moved with
less risk of being bumped to the next departure. For this relationship to
form, the rail needs to know it can rely on a carrier to provide a specific
amount of large-scale, dense volume regularly. The carrier is then given that
capacity before other third-party providers even get to request what they
need. The carrier gets priority until that capacity threshold is reached, and
if the carrier needs more, it has the ability to request additional placement
based on past freight volume reliability. During changing market conditions or
an unexpected surge, an established carrier can flex its capacity needs within
a larger window of time. The rail will work to prioritize and accommodate the
request before turning to less-established carriers looking to change their
capacity needs, ensuring the large, asset-based intermodal carrier volume gets
moved.
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RAIL RELATIONSHIP BENEFITS
An intermodal carrier without an established rail relationships is typically
unable to secure timely placement on the train, let alone enough capacity.
This setback can result in several days tacked on to the shipping duration.
Schneider Intermodal services all of North America, with over 60 ramp
locations, and strategic relationships with the Union Pacific (UP), CSX and
Canadian Pacific Kansas City (CPKC) railroads. Schneider also has priority
placement and capacity on all top lanes on the CPKC. Plus, Schneider’s
relationship with CPKC’s north-south flagship Intermodal service between
Chicago and all major points in Mexico solves for the needs of shippers moving
freight cross-border. This is especially beneficial for the increasing number
of manufacturers that are nearshoring their production to Mexico and moving
goods into and out of the United States.
Schneider rail benefits:
Faster transits Ingate to departure times have decreased by an average of 1
hour. Ingate to delivery times have decreased by almost 20 hours.
Decreased dwell time Driver dwell time has decreased 7% at UP ramps.
More steel-wheel connections The scale of the UP/CSX means they operate more
trains for a greater frequency in rail departures and daily trains. This
amounts to more options and steel wheel connections, enabling more consistent
transit and more reliable service, while reducing handling, driver time and
congestion.
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3. Facilitates a thorough onboarding process to mitigate freight
mismanagement No shipper wants to regret the decision of choosing a provider.
A key factor in a successful transition is selecting an intermodal carrier
that offers a step-by-step onboarding process with specially trained
intermodal new business team members. To ensure business is set up for long-
term success, shippers should ask their potential providers.
Onboarding questions:
How do you plan to align our network? Is there a single channel of
communication? Are there regular check-ins? What resources do you offer to
help become a shipper of choice? Can you provide a loading engineer to ensure
my freight is secure?
4. Offers enhanced communication and freight visibility options Smaller
shippers might be hesitant to work with a large transportation provider
because they fear that the level of service and communication will be less
than what larger shippers would receive. However, larger transportation
providers who care
about all their customers, regardless of their size, should have the resources
and technology to keep shippers updated and informed. A key place to start is
finding an intermodal transportation provider that assigns you an individual
customer service representative (CSR) who will be your go-to point person. The
CSR will help provide a more personalized experience since they are dedicated
to your account and to intermodal moves.
Another core component is finding a provider with a variety of communications
systems that can be put in place to match the level of communications you’d
prefer. A critical piece of equipment for safely and efficiently moving
freight is the use of satellite tracking for end-to-end visibility. As the
supply chain becomes more complicated, the importance of real-time visibility
cannot be overstated. These days, it’s becoming less of a nice-to-have and
more of a must-have.
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Complete freight visibility for intermodal moves is harder to achieve, making
it a true differentiator when a transportation provider can deliver that clear
line of sight into a shipment’s status. The key benefits for shippers include
real-time, pertinent details regarding delivery status, delays and pending
penalties. Your intermodal transportation provider should be embracing GPS
tracking technology to achieve complete asset visibility for improved security
and mitigated risk of lost equipment. In connection with an application
programming interface (API), automatic order updates can be sent, eliminating
status concerns and the need for manual freight status requests.
Having real-time analytics available helps shippers optimize intermodal
operations, further enhancing their supply chains. Additionally, maintaining
control of company drivers, containers and chassis helps with real-time
communication.
5. Manages dray transportation with its own team of professional, safe
drivers Drivers are what make the industry go round, and the best intermodal
transportation providers understand the tremendous impact that the men and
women behind the wheel have. Providers with their own professional, highly
trained drivers are better able to meet shippers’ on-demand needs — regardless
of the market conditions.
Successful drivers start with receiving the right support. This includes
having a thorough understanding of a shipper’s business; education on how to
safely handle their truck, in- and out-of-cab technology and the freight
itself; and providing the right compensation and home-time opportunities.
Establishing a helpful, supportive work environment gives drivers the tools
they need to effectively do their jobs when moving your freight.
Receiving the right support:
Having a thorough understanding of a shipper’s business. Education on how to
safely handle their truck, in- and out-of-cab
technology and the freight itself. Providing the right compensation and home-
time opportunities.
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Safety is also a crucial component to moving freight. Shippers should look for
transportation companies that go above the federal law in screening their
drivers. One example is requiring urinalysis and hair follicle testing to
remove unqualified candidates. Companies that invest in hair testing and
monitor and treat sleep apnea in their drivers indicate advanced safety
measures, so shippers can be assured freight is moved safely, securely and
legally.
6. Has a dedicated load engineer for unmatched optimization and safety To
further help optimize loads, ask whether the transportation provider has a
load engineer on staff. A load engineer oversees and supervises outbound
freight, analyzing loads and determining the most efficient and safest ways
for them to move. They have advanced knowledge of how to best optimize
containers to maximize payload while also keeping safety in mind. In some
instances, they will even design and build special structures to ensure
maximum payload and safety. After analyzing the freight and determining the
best way to maximize the space of the container, a load engineer must also
consider the physical forces that affect a load during transit. Vibration and
shock are the two main forces that could impact freight during rail
transportation, both of which occur continuously throughout the journey.
Failure to control these forces can jeopardize the safe, damage-free movement
of the freight. The load engineer will apply the best blocking and bracing
measures based on the configuration to mitigate freight damage, and by
extension, costly claims. Depending on the type of freight and how it’s
loaded, multiple methods may be used to keep freight in place for maximum
security.
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THREE WAYS TO MAKE THE MOST OF YOUR INTERMODAL MOVES
Whether a shipper is considering incorporating intermodal transportation into
its supply chain for the first time or is already using intermodal, choosing a
transportation provider comes down to more than cost, capacity and service.
While those are definitely key considerations, there are additional ways to
ensure that intermodal — and your transportation provider — is working hard
for you.
1. Improve freight characteristics for preferred treatment To maximize
intermodal’s power, it’s just as important to become a shipper of choice for
intermodal providers as it is for any other mode of transportation. This is
because intermodal providers dealing with productivity loss in the market or
battling tight market capacity may prioritize loads from shippers with
friendly freight characteristics.
To maximize intermodal’s power, it’s just as important to become a shipper of
choice for intermodal providers as it is for any other mode of transportation.
By working with a collaborative intermodal provider like Schneider, shippers
can efficiently improve their transportation strategy to include
characteristics like open appointment windows and drop and hook instead of
live loads to ensure their loads remain a top priority.
2. Leverage precision scheduled railroading (PSR) To get the most out of
working with an intermodal provider, look for one that leverages PSR. PSR is a
rail improvement strategy that transports the same amount of freight with
fewer rail cars and locomotives, while using a schedule direct line of
transport across a network. CSX recently converted to PSR, which has enabled
longer trains, faster speeds and less dwell time in terminals since its
conversion. As a primary rail used by Schneider, this is good news for
shippers because train departure frequency matters.
For those moving freight with providers using railroads that will be switching
to PSR, a multimodal provider should be on the priority list. During PSR
implementation, shippers can expect ramp closures, decreased service and
increased cost. To navigate these disruptions, ensure you have established
relationships with providers like Schneider that are shipping intermodal with
rail partners that already use PSR (like CSX) and are able to pivot to other
mode options as disruptions occur.
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3. Maintain carrier relationships even when capacity is readily available As
with all modes of transportation, the spot market can be attractive when
capacity becomes widely available. However, when capacity inevitably tightens,
shippers that try to convert back to their intermodal provider can find
containers, drivers and capacity removed from areas they need it.
It’s vital to establish a long-term strategic game plan with an intermodal
provider regardless of the market conditions. In working with a freight
service provider like Schneider, you can bet on an optimized and less
stressful supply chain and lock down capacity for market shifts.
REVEL IN THE RAIL REVOLUTION WITH SCHNEIDER’S REINVENTED INTERMODAL SERVICES
The time is now to rebalance your transportation mix to include intermodal —
and Schneider. While the market was focusing on low rates during this most
recent freight cycle, Schneider used the time to reinvent its intermodal
services, providing truck-like service at intermodal prices. Over the past
three years, Schneider and their rail partners have invested over $1 billion
in improvements, increased capacity by 20% with more lightweight chassis and
containers and significantly improved service percentages. Additionally, our
transition to Union Pacific as our western rail provider has yielded 10%
faster pickup to arrival so you can ship more — and do so more reliably.
Today’s supply chain challenges require partnerships that solve for tomorrow,
making Schneider a premier choice for reliable service with a deep bench of
associates ready to solve your complex logistics problems. Our Intermodal
service is one of the most reliable in the industry, and our one-of a-kind
innovations have sparked a rail revolution.
It’s time to look again at intermodal and see how it can get your freight
and your business where you need to go.
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References
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