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Intermodal Transportation -- Untapped Profitability
Many packaged goods and raw materials imported from Asia are shipped to the U.S. in intermodal containers, which can be carried by ship, train and truck. After arriving at a major sea port they are loaded onto trains or semi-trucks for transportation to a hub city from which they are delivered to major retailers' warehouses. After the retailer has emptied the container, it is delivered back to the rail yard and eventually back to the shipping port.
In the past thousands of containers returned to their ports of origin empty. New research is showing the potential profitability and economic viability of shipping soybeans to our Asian customers using these containers. The container option for agricultural exports increases competition, putting downward pressure on freight rates. This has the potential to leave a little more revenue from Illinois farm exports in the pocket of the farmer.1 Some Illinois soybean processors have already begun loading empty intermodal containers with soybeans, soybean meal and even distiller's dried grains (DDGS) derived from corn processing.
Take Action
Efficient soybean transportation using intermodal containers depends on the interconnectivity of all modes of transportation. This can only be achieved through proper maintenance and repair of our state's transportation infrastructure. Check out the "What You Can Do" page for additional resources and information on how you can help encourage intermodal container use for soybean transport.
1Page 4 of "Capitalizing on Containers" report. Illinois Soybean Association, Illinois Department of Commerce and Economic Opportunity (DCEO) and the City of Rochelle. October 25, 2010
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