With the expectation for fast delivery as well as the recent supply chain issues that continue to affect shipping, the need for more trucks serving our ports has never been greater. Enter intermodal trucking.
Intermodal trucking is a crucial piece of our global economy, ensuring goods are efficiently moved between modes of transportation. A quick transition from ship or rail to truck keeps freight moving and reduces port congestion. But, with so many moving pieces, an industry standard is needed. Here’s what you need to know about intermodal trucking and UIIA:
What is Intermodal?
Freight shipping from overseas needs to be transitioned to rail or truck, or both, near the point of entry to end up in warehouses, retail stores, and ultimately at consumers’ doors. Simply put, intermodal trucking is shipping that uses multiple forms of transportation (ocean, air, rail, truck). International freight often arrives at ports by ocean and is transferred to trucks, while domestic freight often involves a combination of rail and truck.
A good example of how this works with international freight would be a Chinese shipper transporting freight overseas to a US port. Once the ship is in port, the freight is unloaded onto a waiting truck with a chassis that can accept the container. That truck transports the container to a nearby facility where the freight is moved from the shipping container to an individual trailer. Once the freight is loaded into this trailer, another truck takes this freight to the final destination.
With intermodal trucking involving a variety of vehicles including ships, trains, and trucks, an industry-standard needed to be applied to ensure smooth operations. That’s where UIIA comes in.
What is UIIA?
Uniform Intermodal Interchange and Facilities Access Agreement (better known as just UIIA) is an industry-standard contract among truckers, sea and rail cargo companies, equipment providers, and drayage companies. “The program is administered by the Intermodal Association of North America (IANA) and covers liability and other issues related to the interchange of intermodal equipment and the freight within, between the two parties.” [2]
Why is UIIA important
UIIA lays the foundation for a standard set of processes and procedures that individuals and companies in the intermodal trucking industry follow. With the unique aspects of intermodal shipping, the UIIA promotes productivity and operating efficiencies by laying out these regulations for the interchange of intermodal equipment, including containers, trailers, and more.
The UIIA also issues certificates to freight carriers that confirm they are adequately insured to operate in the port or rail yard. These certificates are purchased after all proper insurance coverage is in place, including Auto Liability, Trailer Interchange, General Liability, and Cargo coverage. Without a UIIA certificate, the carrier risks being denied entry to the port or railyard. [1]
What you need to know
When it comes to UIIA and the proper insurance coverage for intermodal trucking, you need an insurance agent and company with knowledge and experience handling UIIA matters. It is easy for an inexperienced agency to make a mistake with UIIA and the coverage required, and an incorrectly bound policy can be difficult and costly to correct.
Another essential aspect is that the age-old adage of “you get what you pay for” applies here as well. Many truckers new to intermodal hauling seek inexpensive insurance coverage, but this can lead to inadequate coverage, which ends up costing far more in the long run. These inexpensive coverage options may seem like a good idea at the time, but risk not conforming to UIIA requirements. Fixing a policy that is already bound with incorrect coverage could cost much more in the long run than choosing the correct insurance from the start. An insurance agent well-versed in UIIA requirements can ensure that the right policy is selected, saving truckers time, money, and headache in the long run.
Additionally, shippers in the UIIA often prefer to work with carriers that are higher rated. While the higher-rated carriers may cost more per truck, you’ll generally have access to more jobs than you would with a lower-rated carrier.
Finally, before you can enter the port or railyard, you’ll need a UIIA certificate. Your insurance agent will complete this with a Standard Carrier Alpha Code (SCAC). This four-letter code identifies your company in the databases maintained by the UIIA and Equipment Providers such as ocean carriers, railroads, and equipment leasing companies. With an insurance policy, SCAC, and UIIA certificate in hand, you’ll be ready to handle intermodal freight.
Wrapping Up
Intermodal trucking and UIIA each have their quirks. Once you understand some of the unique elements, it can offer a change from traditional over-the-road trucking or local routes.
If you’re interested in getting a quote for UIIA and intermodal insurance with Cover Whale, tell your insurance agent that they can get appointed to start binding policies today. With Cover Whale, they can quote and bind a policy on the same day so that you can get the right insurance quickly and start delivering!
Sources:
[1] https://www.freightwaves.com/news/insurance-basics-hauling-intermodal
[2] https://www.zippia.com/truck-driver-jobs/intermodal-trucking/
[4] https://www.uiia.org/insurance-agents/uiia-insurance-requirements
[5] https://www.uiia.org/uiia-insurance-agents-directory
[6] https://www.uiia.org/help-guides-webinars/motor-carrier-general-help
[7] https://docs.google.com/document/d/1BwZyvCB437rGt4D_8YWTcR7Hdzp_nlrO-t9QM1EvEYY/edit
