In international freight forwarding, getting cargo from port to its final destination efficiently can make or break your supply chain performance. Two intermodal strategies—Interior Point Intermodal (IPI) and Reverse Interior Point Intermodal (RIPI)—offer distinct approaches to moving containerized cargo inland.
Understanding when and how to use each option can help businesses reduce costs, avoid congestion, and optimize transit times.
In this article, we'll break down the differences between IPI and RIPI, explore when each routing strategy makes the most sense, and help you determine the right approach for your logistics operations.
WHAT IS INTERIOR POINT INTERMODAL (IPI)?
Interior Point Intermodal (IPI) is a transportation solution that moves cargo from U.S. West Coast ports to inland destinations. It involves the use of both rail and truck to move cargo from ports such as Port of Los Angeles and Long Beach to inland locations like Chicago, Dallas, Kansas City, and Memphis. IPI is often favored for its simplicity and cost-effectiveness, as it typically uses a single bill of lading to handle the transportation process, reducing paperwork and simplifying logistics management.
Key Benefits of IPI
- Simplified Documentation: A single bill of lading covers the entire journey from origin port to inland destination
- Reduced Handling: Cargo remains in the same container throughout, minimizing damage risk
- Cost Efficiency: Bundled ocean and inland rates often provide savings compared to arranging segments separately
- Faster Transit: Direct rail connections from West Coast ports can significantly reduce overall transit time to inland markets
WHAT IS REVERSE INTERIOR POINT INTERMODAL (RIPI)?
Reverse Interior Point Intermodal (RIPI) takes a different approach. Instead of using West Coast ports as the gateway, RIPI routes cargo through East Coast or Gulf Coast ports—often via the Panama Canal—before moving it inland or westward to its final destination.
RIPI has become increasingly popular as a strategic alternative when West Coast ports experience congestion, labor disruptions, or capacity constraints. By leveraging East Coast gateways like Savannah, Charleston, New York/New Jersey, or Houston, shippers can access the same inland destinations through an alternative corridor.
Common RIPI destinations include cities like Chicago, Atlanta, Charlotte, and other major distribution centers that can be efficiently served from either coast.
Key Benefits of RIPI
- Congestion Avoidance: Bypasses West Coast port bottlenecks and reduces dwell time delays
- Supply Chain Diversification: Provides an alternative routing option to reduce dependency on a single gateway
- Competitive Rates: Panama Canal routing can sometimes offer cost advantages depending on market conditions
- Flexibility: Opens up additional carrier options and service frequencies
WHAT IS THE DIFFERENCE BETWEEN IPI AND RIPI?
While both IPI and RIPI serve the goal of moving cargo to inland destinations under a single bill of lading, they differ fundamentally in their routing approach and strategic applications. Understanding these differences helps shippers make informed decisions based on cost, transit time, and risk management priorities.
| Feature | IPI (Interior Point Intermodal) | RIPI (Reverse Interior Point Intermodal) |
|---|---|---|
| Primary Route | Moves cargo from West Coast ports inland (e.g., LA, Long Beach). | Moves cargo from East Coast ports inland or westward (e.g., Savannah, New York). |
| Typical Destinations | Inland points such as Chicago, Memphis, Dallas, Kansas City. | Inland points like Chicago, Atlanta, Charlotte and possibly further westward. |
| Transport Mode | Primarily uses rail and truck. | Uses rail and truck, but may also involve the Panama Canal to bypass congestion. |
| Congestion | Typically avoids congestion by moving cargo from West Coast ports. | May bypass congestion on the East Coast using the Panama Canal for more efficient routing. |
| Cost Variation | Rates can vary based on different West Coast gateways, such as LA, Oakland, or Seattle. | Rates can vary significantly depending on the East Coast gateway and routing. |
| Cargo Restrictions | Does not accept Out-of-Gauge (OOG) cargo to inland points. | Same as IPI, OOG cargo is not accepted to inland points. |
| Best For | Standard routing, faster ocean transit | Congestion avoidance, supply chain diversification |
IMPORTANT CONSIDERATIONS FOR IPI AND RIPI
Before selecting your intermodal strategy, keep these critical factors in mind:
Rate Variability
The same inland destination can often be reached via either IPI or RIPI, but the rates can vary significantly. Market conditions, carrier capacity, fuel surcharges, and seasonal demand all influence pricing. It's essential to compare quotes for both routing options before committing to a shipment strategy.
Gateway Selection Matters
Even within IPI routing, different West Coast gateways can offer different rates and transit times to the same inland point. For example, routing through Los Angeles versus Seattle to reach Chicago may result in different costs and delivery timelines. A knowledgeable freight forwarder can help evaluate the optimal gateway for your specific needs.
Out-of-Gauge (OOG) Cargo Limitations
Important: Carriers typically do not accept out-of-gauge cargo for intermodal movement to inland points. OOG shipments—including flat racks, open tops, and oversized cargo—generally require special handling and may need to be moved via port-to-door trucking or alternative arrangements.
IPI VS. RIPI: WHICH IS RIGHT FOR YOUR SHIPMENT?
Choosing between IPI and RIPI depends on several factors specific to your supply chain requirements. Here are the key considerations to guide your decision:
- Transit Time Requirements: IPI via West Coast ports typically offers shorter ocean transit times from Asia. If speed is critical, IPI may be the preferred option.
- Port Congestion Levels: When West Coast ports are experiencing significant delays or labor issues, RIPI provides a valuable alternative routing.
- Cost Optimization: Market conditions fluctuate, so comparing IPI and RIPI rates regularly can uncover savings opportunities.
- Risk Management: Diversifying your supply chain by using both IPI and RIPI reduces dependency on a single routing corridor.
- Final Destination: Some inland points are more efficiently served from one coast versus the other. A freight forwarder can analyze your specific lanes.
HOW SEKO CAN HELP
SEKO Logistics is a leading third-party logistics provider with deep expertise in intermodal freight forwarding. Our global network and carrier relationships enable us to offer competitive IPI and RIPI solutions tailored to your unique supply chain needs.
With over 150 offices in more than 60 countries, we help businesses navigate complex routing decisions, optimize freight costs, and build resilient supply chains. Whether you need standard IPI routing, congestion-busting RIPI alternatives, or a hybrid approach, our logistics experts can guide you to the right solution.
FREQUENTLY ASKED QUESTIONS
1. What is the main difference between IPI and RIPI?
IPI routes cargo through West Coast ports and moves it eastward to inland destinations, while RIPI uses East Coast or Gulf Coast ports (typically via the Panama Canal) and moves cargo inland or westward.
2. Can the same inland destination be reached via both IPI and RIPI?
Yes, many major inland points like Chicago can be served via either IPI or RIPI. However, rates and transit times will differ based on routing and market conditions.
3. Why would I choose RIPI over IPI?
RIPI is often chosen when West Coast ports are congested, experiencing labor disruptions, or when East Coast routing offers more competitive rates or better service options.
4. Can out-of-gauge cargo be shipped via IPI or RIPI?
No, carriers typically do not accept OOG cargo for intermodal movement to inland points under either IPI or RIPI. Alternative arrangements such as port-to-door trucking are usually required.
5. How do I determine whether IPI or RIPI is more cost-effective?
Work with an experienced freight forwarder like SEKO who can compare rates across both routing options. Costs vary based on carrier contracts, market conditions, fuel surcharges, and seasonal demand.
6. Does the choice of West Coast gateway affect IPI rates?
Yes, different West Coast gateways (such as Los Angeles versus Oakland or Seattle) can offer different rates and transit times to the same inland destination. Comparing gateway options is part of optimizing your IPI strategy.
7. How does SEKO assist with IPI and RIPI logistics?
SEKO provides comprehensive logistics solutions, from optimizing routing and gateway selection to streamlining your freight forwarding processes. Our advanced technology and expert team ensure cost-effective and efficient operations for both IPI and RIPI.
