SmartWay
U.S. Environmental Protection Agency +
Intermodal for Shippers
A Glance at Clean Freight Strategies
CASE STUDY:
KIMBERLY-CLARK,
SMARTWAY PARTNER
Q Kimberly-Clark
Since 2006, Kimberly-Clark:
Expanded
intermodal
utilization by
120 percent
42,000 Loads in 2006
to 95,500 in 2013
49 million miles to
120 million miLes
This intermodal utilization has
resulted in:
560,000
trucks off the
highways
Saved 62 million
gallons of dieseL
Reduced CO2 by
630,000 metric tons

Saved $355 Million
Intermodal shipping combines the efficiency of rail and barge with the flexibility of trucking.
For shippers, using multiple modes can dramatically reduce emissions while lowering
transportation costs.
WHAT IS THE CHALLENGE?
Shippers face rising transportation costs, demand for quick product turnaround and delivery, and
pressure to improve the sustainability of their supply chain. These challenges are exacerbated by
the long distances and travel times involved in moving supplies and delivering products to market.
One strategy that can address this challenge is to use a mix of modes in lieu of moving all of your
goods over the road, and choosing a combination that meets your needs for service, cost, transit
times, and sustainability.
Domestic ground intermodal traffic in North America is growing1 for a variety of reasons:
Shippers are concerned about the effects of fuel prices and driver shortages on
truckload capacity.
The number of domestic intermodal containers has increased 75 percent in the last
10 years, meaning intermodal services are better equipped to absorb growth and
seasonal surges2.
Shippers are recognizing intermodal service improvements and network enhancements,
particularly on lanes that are traditionally considered regional truckload hauls (500 to 1,500
miles). Service agreements with the country's largest truckload carriers have opened
dozens of new lanes or "corridors" running shorter and shorter lengths of haul3.
Rail and barge shipping also create significant opportunities for carbon reduction in the supply
chain. An intermodal train can haul the equivalent of approximately 280 truckLoads of freight4,
with each ton traveling an average of 473 miLes on one gaLLon of fuel5. The relative energy
efficiency of rail is estimated at 1.5 to five times that of trucking6 and the ratio for greenhouse
gas (GHG) emissions is similar. Class I railway operations on average emit about 22 grams of CO2
per ton-mile compared to truck operations which emit approximately 65 grams per ton-mile7.
Similarly an inland barge can transport a ton of freight approximately 576 miLes on a gaLLon of
fuel, corresponding to about 18 grams of CO2 per ton-mile8. Therefore, depending upon the
additional truck drayage required, rail and barge modes can offer substantial CO2 efficiency
improvements relative to over the road freight.
WHAT IS THE SOLUTION?
Educate yourself about the cost advantages, services, and environmental benefits involved with
a shift from all trucks to intermodal. For example, the International Association of North America
(IANA) is a trade association that represents the interests of the intermodal freight industry and
provides information on intermodal transportation and shipping9. For some shipments, using rail
corridors for domestic long hauls and trucks for the "final mile" offers the best payoff, but other
combinations of modes (including barge services) may be better suited to your supply chain.
Many logistics services and software providers offer planning tools that can help identify what
works best for different shipping scenarios.
Consult with intermodal brokers to determine if a combination of transportation modes is
cost-effective and appropriate for shipments based on distance, delivery time, and the type
of freight you move.
EPA-420-F-19-013 | March 2019 | SmartWay Transport Partnership | epa.gov/smartway
(continued)

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Intermodal for Shippers: A Glance at Clean Freight Strategies (continued)
COSTS
In general, there are no capital expenditures associated with
using intermodal services; however, there are costs based on
fees charged by intermodal brokers.
There can also be costs associated with scheduling. The
inability to confidently schedule modal transfers often leads
to one of two outcomes10:
If precise transfer schedules are maintained, many
intermodal transfers are missed, affecting operations
further down the logistics chain.
Intermodal schedules have built-in slack time to account
for unreliable travel times. While this can prevent
intermodal connections from being missed, it introduces
inefficiencies in the process and drives up total costs for
both shippers and carriers.
SAVINGS AND BENEFITS
A shift from trucks to truck-rail intermodal can lower your carbon
footprint and reduce your supply chain costs. For example:
Reduced emissions: Baxter International increased the
share of U.S. shipments using intermodal transport from
24 percent in 2009 to 27 percent in 2011. Its 7,800
intermodal shipments in 2011 resulted in an annual
reduction of ig,86o metric tons of GHG emissions and
saved more than 1.94 million U.S. gallons of fuel11.
Savings in the suppLy chain: By expanding the number
of intermodal shipments from 42,000 loads in 2006 to
95,500 in 2013, a 120 percent increase, Kimberly-Clark
estimates savings of $355 million in transportation costs
and 630,000 metric tons of GHG emissions12.
Constellation Brands, a publicly-traded drinks company
with brands in wine, beer, and spirits historically relied on
rail for its long-haul shipping of wines and spirits but was
unable to include "rush shipments" by this mode until
recently. With the addition of "expedited intermodal"
service, the company is able to rely on rail even for
rush shipments, with product arriving at the destination
nearly as quickly as by truck at substantially reduced
prices of 20-25 percent savings for expedited intermodal.
The company estimates 40-50 percent savings for
non-expedited intermodal transport relative to trucks13.
According to EDF's Green Freight report, Michael Kors, a
leading fashion designer of high-end handbags switched
from air freight to ocean freight, taking advantage of a
single-source option that handled shipments that do
not entirely fill a cargo container (less than container load
"LCL"). Historically, partial containers added significant
transit time due to required resorting of goods upon arrival
at the port. However, the specialized intermodal single-
source option improved ocean-only transit time by 30
percent and saved $20 per handbag while reducing
carbon emissions compared to air freight14.
Verified emissions data: Shifting from trucks to intermodal
can have a positive effect on your carbon footprint but it's
important to measure the impact. Seek out reliable methods
for calculating emissions before you shift from truckload to
intermodal15.
For example, SmartWay's Driving Data Integrity in
Transportation Supply Chains document presents data
quality assurance best practices and strategies to help
SmartWay Partners in their own efforts to collect, manage,
and assure the quality of their SmartWay-related data16.
While this document is geared towards SmartWay Partners,
shippers that are not program Partners can certainly
benefit from the best practices and strategies listed.
NEXTSTEPS
1
2
3
Ask your current carriers if they offer intermodal services. Many provide these services through
a separate subsidiary. If not, consult with independent intermodal brokers about their offerings.
Perform an audit of their current costs for each shipment route in preparation for Step 3 below.
This audit process can help you better understand the carbon footprint of the supply chain and how
it may be reduced.
With your intermodal partner, perform "what-if" scenarios using planning tool software based on
several combinations of transportation modes, balancing cost savings and delivery time.

Please visit the SmartWay website at www.epa.gov/smartway
to access more tech bulletins.	U.S. Environmental protection agency^

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