Overview

Amazon has rolled out a new intermodal shipping program that blends rail and ocean freight with traditional trucking for inbound shipments to its fulfillment centers. The service, announced in a recent seller webinar, targets the steep rise in road‑freight costs that many third‑party sellers face. By shifting the long‑haul portion of a shipment to rail or sea, sellers can lower transportation expenses, gain more predictable pricing, and reduce carbon emissions.

Key Points

• Rail‑and‑sea option added — Sellers can now select a mixed‑mode route where trucks handle only the first‑mile pickup and final‑mile delivery, while rail or ocean carriers move the cargo across the bulk of the distance.
• Cost advantage — Rail moves freight at roughly one‑quarter to one‑third the cost per ton‑mile of a truck, delivering the biggest savings on trips longer than 500 miles.
• Stable rates — Intermodal tariffs change less frequently than spot‑market trucking rates, which often surge during Prime Day, the holiday season, or any period of driver shortage.
• Lower fuel surcharges — Because rail fuel surcharges are smaller and less volatile than those applied to trucks, sellers see reduced exposure to sudden fuel‑price spikes.
• Environmental benefit — Transporting a ton of goods by rail emits about 75 % fewer greenhouse gases than moving the same ton by road.
• Transit‑time trade‑off — Adding rail or sea legs typically adds one to three days compared with a direct truck run, a delay that can be managed with proper inventory planning.

How Intermodal Shipping Works

1. Select an intermodal lane — In Seller Central, a seller chooses a route that pairs a rail or ocean carrier with a local trucking partner. For example, a vendor in Los Angeles shipping 30 pallets to the Dallas fulfillment center would pick a rail corridor that runs from the West Coast port to a rail hub near Dallas.
2. Book first‑mile pickup – A contracted truck picks up the pallets from the seller’s warehouse and delivers them to the designated rail terminal. In the same scenario, a regional truck moves the load from the Los Angeles warehouse to the Long Beach rail yard.