Intermodal Optimization

Intermodal Container Street-Turn & Dual-Transaction Matchback Engine

Reduce per-diem charges, minimize chassis splits, and automate ocean-carrier street-turn approvals with a purpose-built mathematical optimization engine for intermodal motor carriers.

Intermodal motor carriers operating at major port gateways face relentless pressure from ocean carrier per-diem schedules, terminal demurrage rules, and chassis availability constraints. Traditional TMS platforms such as Truckmate, McLeod, and TMW provide transaction visibility but lack the algorithmic engine required to systematically pair inbound import empties with outbound export bookings while satisfying complex street-turn approval logic.

Strong Tower Consulting developed a purpose-built optimization model that runs on top of existing dispatch and EDI workflows. The engine ingests real-time container status messages (EDI 322), load tenders (EDI 204), status reports (EDI 214), and invoice data (EDI 210) to construct a daily matchback matrix that minimizes total per-diem days, chassis splits, and deadhead miles.

The Street-Turn & Matchback Optimization Problem

A typical intermodal drayage operation might manage 400-800 containers per day across multiple ocean carriers (Maersk, MSC, CMA CGM, Hapag-Lloyd, etc.). Each import container that returns empty to the terminal incurs 2-4 days of per-diem after free time expires. Simultaneously, export bookings require empty containers that must be pulled from the same terminal or equipment pool. The optimal solution is a “street-turn” or “dual-transaction” where the same container and chassis move directly from import delivery to export pickup without returning to the terminal.

Our engine solves this as a constrained assignment problem using integer linear programming techniques adapted for daily operational cadence. Constraints include:

  • Ocean carrier specific street-turn approval windows and business rules
  • Container type and size compatibility (20', 40', 45', high-cube, reefer, etc.)
  • Chassis pool ownership and split minimization
  • Driver and tractor availability windows
  • Terminal cut-off times and appointment systems
  • Per-diem rate tiers by carrier and equipment age
Typical 30-Day Performance Metrics Before vs After Optimization Engine (Mid-Size Port Drayage Carrier)
Metric Pre-Optimization Post-Optimization Improvement
Street-Turn Percentage 18% 47% +29 pts
Average Per-Diem Days per Import 2.8 1.4 -50%
Chassis Splits per Day 41 12 -71%
Monthly Per-Diem Expense $187,400 $94,200 -$93,200

Core Technical Architecture

The matchback engine is implemented as a Microsoft SQL Server stored-procedure and CLR assembly suite that runs nightly against your existing TMS database (McLeod, TMW, or Truckmate). It leverages native SQL geometry functions for terminal and customer location triangulation and integrates directly with your current EDI 322/214 transaction lifecycle.

Key components include:

  • Real-time container status ingestion via SQL Server Service Broker
  • Dynamic constraint matrix updated from ocean carrier business rule tables
  • Integer linear programming solver (using open-source lp_solve wrapped in CLR)
  • Automated EDI 322 street-turn request generation and 990/214 acknowledgment workflow
  • Driver settlement impact calculator that correctly allocates fuel surcharges, detention, and per-diem savings
  • Power BI visualization layer showing projected vs actual savings by ocean carrier and lane

Independent by Design

Strong Tower Consulting, LLC and Exspeedite LLC are separately organized sister companies under common ownership. We never require you to purchase or license software to receive the benefit of our optimization models. Our clients continue to run their preferred TMS platforms while our engine operates as an independent analytical and automation layer.

Implementation Approach

Our typical engagement begins with a two-week data mining sprint against your SQL Server instance. We map existing EDI transaction patterns (204 tender, 214 status, 210 invoice, 322 container status) and build the initial constraint library for the specific ocean carriers you serve. Within 45 days the engine is generating daily recommended street-turn pairings that dispatchers can accept or override inside their familiar McLeod or Truckmate dispatch boards.

Because the solution is built on open SQL and EDI standards, it works equally well for carriers running legacy TMW Suite, modern Truckmate, or any custom SQL-backed dispatch system.

Results Our Clients Have Achieved

Carriers using the engine have consistently reduced per-diem and chassis-related costs by 38-57% within the first six months. More importantly, the reduction in chassis splits has produced measurable improvements in driver hours-of-service compliance and equipment utilization.

Ready to stop writing checks to ocean carriers for avoidable per-diem? Our intermodal optimization model pays for itself in under 90 days for most port drayage operations.

Schedule a no-obligation operational assessment     |     Call 763-244-1373

Frequently Asked Questions

Does this engine require us to replace our existing TMS?

No. The matchback optimization engine is deliberately designed as an independent layer. It reads from and writes back to your current McLeod, TMW, or Truckmate database using standard SQL views and stored procedures. You retain full control of your core dispatch system.

How does the engine handle ocean carrier street-turn approval workflows?

The system maintains a rules library for each ocean carrier. When a viable street-turn pairing is identified, it automatically generates the required EDI 322 message with the correct equipment reference and transmits the request through your existing VAN or API connection. Approved street-turns are then reflected back into your dispatch board as pre-approved dual transactions.

What data sources does the optimization model require?

The engine primarily uses your existing EDI 204, 214, 210, and 322 transaction streams plus basic SQL tables for customer locations, chassis pools, and driver availability. No additional hardware or third-party data subscriptions are required.

Can the model also optimize for fuel surcharges and driver settlement accuracy?

Yes. The post-optimization settlement module correctly apportions fuel surcharges, detention, and per-diem savings between the import and export legs of each dual transaction, eliminating the manual adjustments that typically create payroll disputes.

Strong Tower Consulting, LLC was founded in Minnesota in 2008 by Scott Elliott. In business for more than 18 years, we serve intermodal motor carriers across all major North American port gateways.