January 24, 2017

Why Intermodal Trucking Insurance Matters

Intermodal trucking is becoming the go-to choice for companies interested in long-haul shipping. Some of these companies invest a significant amount of money in each shipment. The following are a few reasons why intermodal trucking insurance matters.

Various Transport Phases

Some shippers are leery of intermodal trucking due to the transitional phases the container will go through. But many choose this option because it is easy to move one ton of freight for up to 450 miles using just one gallon of fuel. This is drastically different from using an over-the-road truck. Of course, switching the transportation method means that intermodal insurance is imperative.

No Individual Handling

Handling is one aspect of shipping that shippers do not like. It increases the chance of a mistake since many people handle the shipment. Intermodal shippers decrease the possibility of this issue because there is no individual handling. Now, this does not mean that the shipment will not be handled at all, but it will be handled as a whole rather than by item. This does put the shipment in the hands of a machine. This will not likely harm the shipment, but nothing is guaranteed in life, which is another reason why intermodal trucking insurance might be helpful.

Traffic is Still Involved

Sure, using trains reduces the amount of time a shipment is exposed to roads and traffic, but it will happen at some point. Trains simply cannot reach specific locations, which is where a truck comes in. Most shippers know that it is in traffic where most accidents happen and merchandise is lost. This is perhaps one of the biggest reasons why intermodal trucking insurance makes a difference. It creates a sense of trust and ensures that the value of the investment is not lost due to an accident.

Regulation Reduction

Tracks are fixed, and the likelihood of an accident is quite small when compared to solely using over-the-road trucking. This means that intermodal trucking insurance may be relatively cheaper than other types of insurances. There are also less regulations and restrictions regarding loading or unloading containers. This also means you will save money since insurance companies see the lack of necessary regulations or restrictions as a plus.

Insurance companies love to insure jobs or cargo that are less of a risk. This is how money is made, and intermodal trucking affords insurance companies this opportunity.

Technology Rules

There was a time when shippers were kept in the dark about their shipment until the cargo reached a certain checkpoint. This is no longer the case. Intermodal trucking offers shippers the opportunity to track their shipment, which means that the insurance company also has this information.

Knowing where a shipment is at all times and being able to track it makes shippers and the insurance company a little more comfortable about the cargo. This translates into happier shippers and cheaper intermodal trucking insurance.

Of course, these are just a few reasons why this kind of insurance matters and how it can give shippers peace of mind when shipping.