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Home » Blogs » Think Tank » Why the Future of Freight Is Multimodal

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Why the Future of Freight Is Multimodal

FREIGHT RATES OCEAN TRUCK RAIL TRANSPORTATION GLOBAL TRADE iStock-Tryaging-1266958681.jpg
1266958681
July 22, 2025
Aaron Freedman, SCB Contributor

The pace and scale of today’s supply chain disruptions are hard to overstate — and even harder to plan for. In April, freight company HLS Group reported 80 canceled sailings from China as trade tensions with the U.S. intensified. In mid-May, after the two countries agreed to temporarily halt planned tariff increases, container bookings surged by nearly 300%, straining port operations and carrier capacity.

Because logistics are tightly woven into production, fulfillment and the customer experience, the impact of a transit issue, like a delayed shipment, can quickly ripple across the whole business. Assembly lines pause. Inventory buffers shrink. Deliveries miss their windows. And cross-functional teams — from procurement and sales to finance and customer service — are left scrambling to react.

To keep operations and supply chains stable amid the volatility of today’s global trade dynamics, companies need a freight strategy that can flex under pressure. That means going multimodal.

Multimodal in Practice

At a basic level, multimodal shipping can refer to using two or more distinct modes — such as truck, rail, air or ocean — in a single supply chain. Take the example of a U.K.-based manufacturer that ships engine blocks through several U.S. locations. The components first travel by ocean to a machining facility in Michigan. From there, they move to a second site for precision alignment before traveling to a third site for final assembly. Once complete, the engine blocks are distributed to buyers across the country.

Throughout this process, freight is shipped using a mix of modes and service types. However, the real nuance comes into play when looking at a single mode of transport, particularly road freight. While most people understand the difference between rail and truck or air and ocean, fewer realize that multiple choices exist within the road category alone. 

Consider that U.K. engine-block manufacturer. If it wants to move a four-pallet shipment between two locations in the U.S., it has several road transportation options available, each with different price points, service characteristics, and risk profiles:

  • Partial truckload (PTL). This shipping method can offer faster transit with fewer handoffs. Freight is consolidated at a facility and loaded directly onto a truck bound for its destination, minimizing stops and transfers along the way. PTL can be ideal for larger loads that don’t require a full trailer but would still benefit from reduced handling.
  • Volume less-than-truckload (LTL). Here, carriers group multiple large shipments together and delay dispatch until the trailer reaches capacity. It’s a good option for shipments that are too large for regular LTL but don’t justify the expense of a full or partial truckload. It’s generally lower cost than PTL or full truckload, but comes with longer dwell times and less predictability in delivery windows.
  • Regular LTL. This is typically the most cost-effective road option for small to medium-sized shipments. However, it involves multiple transloads across terminal hubs. Each transfer increases the chance of delays or damage, and cargo liability is limited, usually calculated based on the amount of trailer space occupied.

The U.K. manufacturer’s engine blocks are high-value components, so avoiding the risk of damage from transloading within an LTL network is a top concern. In such a case, the best solution is usually PTL, which keeps freight on a single truck from pickup to delivery, reducing the likelihood of issues in transit.

Strategic Mode Selection

Mode decisions are also a key factor when businesses need to adjust plans quickly. In one recent case, a 95-lb adapter plate moving via standard ground service was lost in transit. The shipper needed a replacement by 6:30 a.m. the next day. The answer lay in expedited overnight delivery using a sprinter van. The cost was higher, but the product arrived on time. (Had the adapter plate been moved through a more secure method from the outset, the shipment might have arrived without disruption and at a lower total cost.)

Situational needs like these often guide short-term freight decisions, and over time, those choices can influence broader sourcing and shipping strategies, too. Increasingly, companies are weighing transportation efficiency as a factor in where and how they source. For instance, if a regional supplier in the southeastern U.S. can deliver by truck within a few days, that speed may outweigh the cost advantage of waiting two weeks for an overseas shipment.

Meanwhile, a supplier located along a major rail corridor in the Midwest may become a more attractive option than one requiring longhaul trucking, particularly for high-volume or recurring shipments. In both these scenarios, the ability to price, plan and pivot across transport modes provides businesses with a critical operational advantage — and some much-needed leverage in a tight market.

Decarbonizing the Supply Chain

Flexibility and cost control aren’t the only strengths of a multimodal strategy. As large buyers and corporate partners place greater emphasis on sustainability, companies are actively looking for ways to limit emissions across the supply chain. A multimodal approach supports that goal by making it easier to utilize more eco-friendly modes of transport when possible.

Rail is approximately four times more fuel-efficient than trucking, according to the Association of American Railroads. A shipper could take advantage of this by using rail for the longhaul portion of a route and transitioning to trucks for pickup and final delivery, reducing emissions along the most fuel-intensive leg of the journey.

This also positions companies to win and retain business. More and more large enterprises are committing to net-zero or carbon-neutral targets, and many are asking suppliers to do the same. Using multimodal logistics to reduce emissions offers a practical way to align with broader environmental, social and governance (ESG) priorities without compromising on performance.

Optionality for Domestic Networks

Shifting tariffs, geopolitical uncertainty and rising pressure for U.S. economic self-reliance have made cross-border sourcing far less predictable. In response, many businesses are turning to domestic suppliers to gain more control and stability. But even within the U.S., supply chains face challenges. Lead times can vary, and equipment or vehicle availability can change without warning.

In an environment like this, relying on a single mode of transit can leave businesses overexposed to operational risk. To maintain continuity, companies need to be able to align freight modes with priorities such as cost, speed and security, then pivot when necessary by rerouting shipments, rebalancing networks or responding to sudden shifts in demand. Multimodal transport delivers on all fronts, enabling companies to switch modes, manage costs, lower emissions, and keep goods moving. It’s a logistics model designed for change — and the foundation for long-term supply chain resilience.

Aaron Freedman is chief executive officer of ACI Transport.

Last Mile Delivery Logistics LTL/Truckload Services Ocean Transportation Rail & Intermodal Supply Chain Security & Risk Mgmt

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