Inland rail movements play a critical role in the overall logistics of ocean freight transportation, yet they are often overlooked within global supply chains. The focus of analyses tends to be primarily on ports and maritime logistics, but recognizing the importance of inland rail movements is crucial for optimizing supply chains, improving efficiency, reducing costs, and achieving sustainable freight transportation. The good news is that even without industry-wide rail visibility technology, there is container tracking technology already making it possible for shippers and BCOs to better understand this area of their supply chains. Unlocking container visibility can improve this potential weak point in the chain.
The Problem with Inland Rail Movements
Within U.S. ocean import shipments, most cargo doesn't reach the end of its journey at the marine terminal. Instead, it is transported to inland facilities such as rail yards or intermodal terminals. This transition from the marine terminal to the inland facility can pose several visibility challenges. Marine terminals often lack meaningful Last Free Day (LFD) or availability events for containers that move to inland facilities. As a result, tracking the movement and status of these containers becomes difficult.
Complicating matters further, shippers and logistics service providers may independently arrange freight transport to inland facilities, a practice known as merchant haulage. However, these subsequent moves are rarely reported by carriers, creating a gap in visibility. The lack of reporting from carriers with merchant haulage can leave customers unaware of the progress and location of their cargo, hindering their ability to track and manage their supply chains.
Adding another layer of complexity, free time limitations at inland rail yards are typically stricter than at marine terminals. The tight windows for cargo storage at rail yards necessitate as close to real-time visibility as possible to mitigate demurrage charges. Without accurate and timely visibility into the movement of containers within the rail yard, shippers and logistics providers may struggle to follow these strict time constraints, resulting in additional costs.
With limited tracking provided by railways, it can be difficult to achieve real-time visibility into the location and status of rail shipments. Since the rail portion of a company’s supply chain often has multiple entities at work, these fragmented networks introduce another challenge. Each system may have its own data formats that create obstacles to consolidating information for shippers to gain a holistic view of rail movements. The data provided by different rail companies may vary in terms of structure, terminology, and level of detail. This lack of standardization plus limited reporting by some companies makes it difficult to aggregate and analyze data efficiently for comprehensive visibility.
As the Need for Visibility Increases, Shippers Need End-to-End Intermodal Visibility
Fortunately for rail visibility, container tracking works intermodally. This real-time visibility into inland rail movements offers several benefits for logistics operations and customer service.
Reduced Demurrage Costs
With real-time visibility, shippers and logistics providers can closely monitor the movement of containers within the rail yard and plan pickup or delivery operations more efficiently. Accurate visibility helps ensure timely action to prevent demurrage charges, leading to significant cost savings.
Improved Operational Efficiency
By enabling better planning and coordination of inland rail movements, logistics teams can monitor the progress of shipments, anticipate any delays or disruptions, and proactively adjust schedules or routes as needed. This level of operational insight improves overall efficiency, reduces idle time, and optimizes resource allocation.
Improved Customer Service
Real-time visibility is a valuable service offering for customers. Providing accurate and up-to-date information about the location and status of their cargo builds trust and confidence. Customers can proactively plan their operations, adjust inventory levels, and communicate accurate delivery estimates to their own clients. Enhanced customer service leads to higher satisfaction and loyalty.
Effective Problem Resolution
With real-time visibility, shippers are better equipped to quickly identify and resolve issues or exceptions in cargo movements. If there are delays, disruptions, or deviations from the planned schedule, logistics teams can respond and implement corrective measures. Having this proactive approach in place minimizes the impact of disruptions on the entire supply chain.
Data-Driven Decision-Making
Shippers gain access to valuable data and insights that can be used for performance analysis, process optimization, and strategic decision-making. By analyzing historical and real-time data, they can identify patterns, trends, and areas for improvement. This data-driven approach helps to streamline and enhance performance.
Unlock True Intermodal Rail Tracking without Gaps in Visibility
Real-time visibility into inland rail movements brings cost savings, operational efficiency, supply chain transparency, and improved customer satisfaction. By leveraging advanced container tracking technology and data integration made possible by VIZION, shippers and BCOs can unlock these benefits and gain a competitive edge in the increasingly complex and interconnected logistics landscape.
With real-time container tracking events, notifications, and insights, VIZION API helps shippers enhance their operational performance and reduce costs. To learn more about VIZION, reach out to us today to book a demo.
