After a disastrous 2020, intermodal shipping — the use of two or more modes of transport to ship a single container from overseas direct to its destination — has exploded. In the first half of 2021, volume rose 17% from the first half of 2020, when volume declined dramatically due to the pandemic.

Perhaps more telling: The first half of 2021 was up 5% from the first half of 2019, resulting in record volumes of traffic.¹

The boom is reflected in shipping: Ports in Los Angeles and Long Beach, Calif., received about 860,000 inbound containers per month in 2021, 24% more than the typical monthly volume in the five years leading up to the pandemic.²

New business, new challenges

For intermodal carriers, that increased demand is obviously good for business, but it does raise risk management issues: scalability, cyber risks and contract reviews.

Here’s how these challenges could play out for intermodal transportation in 2022 — and how risk management can help solve them:

1. The driver shortage. The trucking industry is short about 80,000 drivers.³ The temptation for intermodal carriers is to short-circuit hiring practices to meet demand.

   That temptation may arise because it can be a long delay between the time a driver begins an application, completes a background check, drug screen and hits the road. For small carriers, meeting new shipper contract and insurance requirements can mean additional delays.

   In order to fill positions quickly, while increasing the size of operations, intermodal companies must demonstrate to their insurers that they can safely onboard less-experienced drivers, monitor their progress and continue to train them based on their driving behavior.

2. Increased cyber risks. With so many points of contact for intermodal carriers, so much business and regulatory documentation done electronically, and with electronic logging devices (ELDs) generating massive amounts of driver data, cyber security has taken outsized importance in intermodal.

   And cybercriminals are targeting companies with weak cyber security, no matter the industry or size of the organization. Bad actors can infiltrate networks, scam employees through phishing emails and manipulate online payment systems and invoices — or even take down operations and demand ransom to get back online.

   And when supply chain and container management are already major problems, the last thing an intermodal carrier can afford are days lost to cybercrime.

3. Managing contract review. Agreements between shipper and carrier, or broker and carrier, can be long and complex — some 50 pages or more. The complexity for intermodal carriers is often doubly complex due to the number of businesses involved.

   Reviewing these contracts has become a significant investment of time and effort. However, the risk involved within the pages of contracts can be immense, whether it’s penalties for missed deadlines or taking unwarranted liability for problems not of the carrier’s making.

Reducing risk through technology

Artificial intelligence, in-cab technology and tools like integrated dashboards (such as HUB Drive Online) to incorporate and interpret data can reduce risk in the three areas outlined above.

Smart use of technology not only helps with cyber security and untangling complex contracts, but with recruitment. Technology can help determine driver eligibility by combining online history and the results of personality testing.

Hiring can also incorporate digital driver scoring solutions, fleet scoring solutions and resources, such as digital onboarding and training centers.

Learn more about HUB Drive Online to see how an integrated dashboard can dramatically reduce risk and improve internal operations.

¹ Marketplace. “What freight rail tells us about the economy,” August 4, 2021.
² Bloomberg, “‘Just get me a box.’ Inside the brutal realities of supply chain hell,” September 15, 2021.
³ CNN Business. “Wanted: 80,000 truck drivers to help fix the supply chain,” October 19, 2021.