Is it Cheaper to Ship by Train or Truck?

Is it Cheaper to Ship by Train or Truck?

Cost of Shipping by Rail vs Truck

When people decide to ship by train or truck, the first thing they consider is the price. Which transportation method will be the most cost-effective in their case.

Cost efficiency of each method depends on your needs. If you have lots of freight that need to be delivered on long distances, then train shipping will be more affordable and overall effective. If your destination is not far away and you don’t have big volumes of freight, then truck shipping is the way to go.

Also, you can combine these transportation methods to get the most from both of them. An optimized shipping strategy always gives you a chance to have some cost savings.

Cost Per Ton-Mile Rail vs Truck

If you take the same mileage, then rail transportation will be much cheaper. You should keep in mind that a railcar equates to 4 truckloads. The difference in cost between the two transportation modes is $0.105 per ton-mile.

Train vs Truck Efficiency

In terms of efficiency and benefits, each transportation method can impress.

Shipping by Train

• Consumes less fuel on the same mileage
• Provides more volume for freight
• Cheaper for long-hauls
• Emit 75% fewer GHG emissions

Shipping by Truck

• Convenient schedule
• Cost-efficient for short distances
• More suitable for perishable products that are easy to load/unload
• Effective for the last mile and in time delivery
• Can be improved for better effectiveness