Interline in logistics is a collaborative approach where multiple transportation companies work together to move cargo from its origin to its final destination. This concept is widely used in various modes of transportation, including trucking, rail, and air freight.
Let’s explore interline logistics in detail.
What is interline in logistics?
Interline, also known as interlining, refers to an arrangement where two or more carriers cooperate to transport a shipment to its destination. In this process, the original carrier responsible for the shipment may use the services of other carriers to complete the delivery successfully. This collaboration can occur during any part of the freight’s journey, including pickup, transit, or delivery.
How does interline work?
When a shipment is interlined, it typically follows these steps:
- Initial carrier accepts the shipment
- Carrier transports the cargo to a transfer point
- Freight is handed off to another carrier
- Process repeats until the shipment reaches its final destination
The original carrier remains responsible for the total freight charges to the customer, even though multiple carriers may handle the shipment.
What are the different types of interline arrangements?
Interline arrangements can vary depending on the mode of transportation and specific agreements between carriers. Some common types include:
- Motor carrier interline. Collaboration between trucking companies
- Rail interline. Cooperation between different rail networks
- Air freight interline. Agreements between airlines for cargo transportation
- Multimodal interline. Involving different modes of transportation (e.g., truck to rail to air)
What are the benefits of interlining?
Interline logistics offers several advantages for both carriers and shippers.
For carriers
- Extended coverage. Carriers can fill gaps in their service areas by partnering with other companies
- Cost savings. Reduced need for investment in new equipment or expansion into new territories
- Improved efficiency. Optimal use of existing resources and networks
- Increased competitiveness. Ability to offer more comprehensive services to customers
For shippers
- Seamless transportation. Single point of contact for the entire shipment
- Expanded reach. Access to a broader network of destinations
- Potential cost savings. More efficient routing may lead to lower shipping costs
- Simplified logistics. Reduced complexity in managing multiple carriers
Interline vs. Direct Services
To better understand interline logistics, it’s helpful to compare it with direct service.
Interline Service
- Involves multiple carriers
- May have longer transit times
- Often used for less common routes or destinations
- Can be more cost-effective for certain shipments
Direct Service
- Single carrier handles the entire shipment
- Generally faster transit times
- More common for popular routes
- May be more expensive for some destinations
What are the main technologies used in interline logistics?
Advancements in technology have significantly improved interline operations:
- Electronic Data Interchange (EDI): Facilitates seamless information exchange between carriers
- Track and trace systems: Provide real-time visibility across multiple carriers
- Transportation Management Systems (TMS): Help manage and optimize interline shipments
- Blockchain: Emerging technology that could enhance transparency and trust in interline transactions
Different transportation modes in interline logistics
Trucking Interline
In trucking, interline often involves:
- Regional carriers collaborating to cover long-distance routes
- Specialized carriers handling specific segments of a shipment (e.g., hazardous materials)
- Last-mile delivery partnerships
Rail Interline
Rail interline is common due to the nature of rail networks:
- Different rail companies own tracks in various regions
- Interline agreements allow for coast-to-coast rail transportation
- Can involve transferring cargo between different types of rail cars
Air Freight Interline
Air freight interline is crucial for global logistics:
- Allows for transportation to destinations not directly served by a single airline
- Involves complex customs and security procedures at transfer points
- Often includes ground transportation at origin and destination
Interline and Multimodal Transportation
Interline plays a vital role in multimodal transportation:
- Facilitates seamless transitions between different modes (e.g., sea to rail to truck)
- Enables efficient door-to-door service for international shipments
- Requires coordination of documentation and customs procedures across modes
Interline and Supply Chain Management
Interline logistics has significant implications for supply chain management:
- Enables more flexible and resilient supply chains
- Allows for optimization of transportation networks
- Can help reduce overall logistics costs
- Supports global sourcing and distribution strategies
4 real-life examples of interlining
Let’s explore some real-life examples of interline in logistics to help demonstrate how interline logistics enables efficient transportation across vast distances and different modes, allowing carriers to extend their reach and provide comprehensive services to their customers.
Trucking Interline
A furniture manufacturer in North Carolina needs to ship a large order to a retailer in Oregon. The local trucking company that picks up the shipment doesn’t have direct routes to the West Coast. Here’s how interline might work:
- Local carrier A picks up the furniture in North Carolina
- Carrier A transports the shipment to their hub in Tennessee
- The shipment is transferred to carrier B, which specializes in cross-country routes
- Carrier B moves the freight to their distribution center in Nevada
- Regional carrier C takes over for the final leg, delivering the furniture to the retailer in Oregon
Throughout this process, the customer deals only with the original carrier A, who remains responsible for the entire shipment.
Rail Interline
Consider a grain shipment from Saskatchewan, Canada to a port in Vancouver for export:
- Canadian Pacific Railway (CP) picks up the grain cars in Saskatchewan
- CP transports the cars to the edge of their network in British Columbia
- The cars are transferred to Canadian National Railway (CN), which has tracks leading to the port
- CN completes the journey, delivering the grain cars to the Vancouver port
This interline arrangement allows for seamless transportation across different rail networks.
Air Freight Interline
A technology company in Silicon Valley needs to ship computer components to a manufacturing plant in Vietnam:
- FedEx picks up the shipment in California
- FedEx flies the cargo to their hub in Memphis, then to Tokyo
- Due to limited direct flights to Vietnam, FedEx transfers the shipment to Vietnam Airlines in Tokyo
- Vietnam Airlines completes the final leg to Ho Chi Minh City
- A local trucking company (partnered with FedEx) delivers the components to the manufacturing plant
This interline arrangement allows for efficient global transportation, leveraging the strengths of different carriers.
Multimodal Interline
An automotive parts supplier in Germany needs to send a shipment to an assembly plant in Michigan:
- A German trucking company picks up the parts from the supplier
- The truck delivers the shipment to a port in Hamburg
- A container ship transports the cargo across the Atlantic to New York
- At the port, the container is transferred to a rail company
- The rail company moves the shipment to Detroit
- A local trucking company makes the final delivery to the assembly plant in Michigan
This complex interline arrangement involves multiple modes of transportation and several carriers, all coordinated to provide a seamless door-to-door service.
In summary, Interline in logistics is a collaborative arrangement where multiple transportation companies work together to move cargo from its origin to its final destination, often across different modes of transport or service areas.
