Strategies for Inland Transport Optimization: A Nationwide Perspective

By
Golden State Logistics

The freight and logistics market in the U.S. is expected to reach $1.33 trillion in 2024 and $1.67 trillion by 2030. This is a significant chunk of the global freight market, roughly estimated at $11.1 trillion.

In the U.S., inland transportation ranks at the top. Inland transport is the lynchpin that connects all other modes of transportation from marine to air, land, and rail. Inland transport optimization is necessary because it provides supply chains with various delivery options tailored to their unique needs.

Operational efficiency and cost-effective delivery of goods are imperative within modern logistics and supply chain operations. This urgency makes inland transportation a critical component of the logistics industry. Optimization will ensure it streamlines the movement of goods across the entire country. Businesses can also leverage the operational efficiency of inland transport to minimize costs, enhancing their competitiveness.

Inland Transport Delivers Options and Efficiency

Inland transportation goes beyond just trucking or land transportation. It encompasses a system where businesses and supply chains leverage a variety of modes of transportation, including rail, trucking, air, pipelines, and waterways, to transport their goods across the entire country efficiently.

This diversity of options allows logistics operations to improve the efficiency of the entire operation.

  • Trucking and Land: Provides unmatched flexibility across terrains and enables businesses and supply chains to easily reach customers.
  • Inland waterways: Leverage these to move bulk cargo using barges and vessels nationwide for a cost-effective approach.
  • Railroad: Trains can also help move goods long distances across the land, but unlike trucking operations, they are much more cost-effective. However, it will still need trucking to reach the final shipper destination.
  • Pipelines: For oil and gas or chemical companies, transporting hazmat products can be dangerous and expensive. However, with pipelines, they have a much cheaper and safer option that allows for efficient transportation across long distances.

Inland transport allows flexibility, cost-effectiveness, and efficient distribution by matching needs with modes of transportation and adapting to demand fluctuations. For instance, large cargo transportation will be more effective than trains or marines. However, when speed is needed, many supply chains prefer trains because they require little effort to move goods between land and rail.

Inland transportation optimization is highly dependent on infrastructure and policies. For instance, the recent Baltimore bridge collapse caused delays in and out of the Port of Maryland and much rerouting in inland transportation, resulting in deliveries delayed for days.

Eight Strategies to Optimize Inland Transportation

Inland transportation optimization ensures operators can seamlessly get goods to the consumers without disruptions or hiccups. However, optimizing inland transportation can be challenging considering factors working against it, including a lack of free-flowing information. Here are eight strategies that can be leveraged to optimize it.

1. Integrate Multimodal Transport Systems

Integrating multimodal or intermodal transport systems into inland transportation provides a seamless logistics chain. Businesses and supply chain operations can leverage the unique advantages of each mode of transportation, including trains, barges, and trucks. This can make the operation much more cost-effective while ensuring quicker deliveries to warehouses, transloading facilities, distribution centers, and consumers.

To integrate these modes of transportation successfully into the system, operators have to leverage solutions, such as:

  • Route planning and optimization to tackle empty miles and ensure timely arrivals.
  • Load management to match the cargo size and weight with the right vehicle.
  • Optimizing the warehouse and distribution centers to streamline loading and unloading.
  • Technology tools like telematics track vehicles and monitor driver performance.

2. Implement Dynamic Routing and Scheduling

Advanced routing and scheduling embedded with real-time data allow for dynamic route optimization in the inland transportation network. This way, the logistics chain can adjust to disruptions and delays along the process, allowing for the optimal use of vehicles and resources to ensure that the inland transportation process is not hindered. Dynamic routing also saves costs, reduces greenhouse emissions, and reduces the impact of delays along the supply chain. All of these ensure happier consumers and better services.

3. Enhance Load Optimization

Embrace the transformative potential of AI and machine learning in your cargo handling across inland transport operations. These solutions have the power to revolutionize your entire loading and unloading process. For example, these solutions can ensure the following:

  • Smarter load planning by analyzing data such as cargo dimensions, routes, and past cargo to maximize truck space utilization and avoid empty trips across all modes of transportation.
  • Predictive maintenance ensures cargo movement is without disruption. It can achieve this by analyzing sensor data to understand when the vehicles and other means of transportation need repair.
  • Adjust loading plans in real-time by monitoring traffic, weather, and demand to ensure on-time deliveries.

By enhancing load optimization, the inland transportation operation can transport more cargo with less cost, ensure safety and continuous improvement, and streamline the entire process to improve efficiency.

4. Advance Technological Integration

The transportation chain is constantly evolving. And technology has made this so much easier. With tech tools like blockchain and the Internet of Things (IoT), logistics processes can enhance the seamless flow of information across the entire operation, allowing them to sync up perfectly.

IoT technology provides real-time information on location, temperature, and other relevant data that can be leveraged for improved visibility and proactive management. Blockchain technology allows for secured records to be shared at every step in a shipment's journey. This boosts trust and transparency.

5. Focus on Sustainability Practices

The need to stay sustainable pushes businesses to consider the emissions they produce during operations. The logistics industry, including inland transportation, is one of the major causes of greenhouse emissions. Consumers are now weary of businesses and supply chains that do not take measures to ensure their operations are environmentally friendly, which highlights the importance of sustainability.

More importantly, integrating sustainability allows for more efficiency in the inland transportation process. This means integrating processes and solutions that are sustainable to the environment, such as electric vehicles, including trucks and ships, route planning and optimization to curb fuel usage, scheduling, and preventative maintenance to prevent repair and asset breakdown.

6. Strengthen Security Measures

In 2023, cargo theft increased by 57% year over year, reaching 68% year over year in the fourth quarter. This reflects the critical need for improved cargo security across the country. It also impacts inland operations at large, leading to disruptions and exceptions.

To curb this and protect the cargo from other dangers, the following will be helpful:

  • Physical cargo security through solutions like reinforced trailers, wheel locks, and GPS trackers.
  • Evaluating security protocols and adding smart sensors to detect and monitor suspicious activity.
  • Hiring trustworthy drivers and careful route planning to avoid risky locations and situations.

7. Leverage Data Analytics for Forecasting Demand

Demand forecasting and planning are essential keys to effective supply chain management. The same principles apply to inland transportation. It entails using predictive analytics to identify potential demands and allocating the necessary resources, including vehicles and personnel.

Through data analytics, you can identify demand fluctuations and take measures or make plans to mitigate these fluctuations. Leveraging data analytics helps align transportation capacity with demand to enhance service reliability.

8. Partner with a Trusted Logistics Provider

Inland transportation should be done correctly, and this requires using a trusted logistics provider. The right logistics provider will have the resources, tech solutions, and investment in critical relationships to allow for the effective and seamless movement of goods at a lower cost.

Expand Your Reach with Inland Transport Optimization

Golden State Logistics is the ideal inland transportation partner, offering expertise and a competitive edge in an increasingly complex and complicated logistics landscape. We have over 25 years of experience moving freight in Southern California, including the LA and Long Beach Ports, thanks to a fleet of over 500 private chassis. Our commitment to sustainability and technology ensures your supply chain is always one step ahead. Get in touch with us today.

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