Drayage refers to the transport of freight over short distances, a critical step in ensuring smooth and timely deliveries. The freight is typically carried by trucks within the same metropolitan area, such as from a port to a rail yard or distribution center.

Types of drayage

Intra-carrier drayage

This involves the transport of goods within one carrier’s system, such as moving them from a port to an intermodal hub. In this case, both are operated by one service provider.

Inter-carrier drayage

Inter-carrier drayage involves the moving of cargo between different carriers. It is used for coordinating multimodal goods transport, such as shifting from one carrier’s rail service to another’s trucking system.

Door-to-door drayage

This is often used in e-commerce and for sensitive cargo requiring direct delivery. It usually transports goods from a port or terminal to the final delivery point, covering the entire journey.

Shuttle drayage

Shuttle drayage is often used as a temporary storage solution for excess containers. It involves moving goods from a terminal when it runs out of space to a nearby storage yard.

Pier drayage

Also known as port drayage, this service involves the transport of goods from a port to a warehouse, rail yard, or another terminal nearby.

Drayage in the supply chain

Drayage is a critical step in the delivery of goods from a port, terminal, warehouse or distribution center to the final customer. It connects various stages of the supply chain, facilitating the movement of goods in the delivery process.

Its efficiency is particularly highlighted in congested areas where delays can have ripple effects throughout the logistics process. By leveraging short-distance hauls, companies can reduce the risk of delays and minimize storage costs.

Drayage is also a key component in intermodal transportation. It eliminates the need to handle goods directly while changing modes, enabling smooth deliveries.

Drayage fees

Understanding the structure of drayage fees is crucial to accurately budget shipping charges. The following costs are included:

• Line haul rate — The base charge for transporting containers between two points, which varies by distance.

• Fuel surcharge — Additional fee to cover fuel price fluctuations.

• Mode of transport — The vehicle needed for delivery, such as trucks and vans.

• Loading and unloading fees — For placing and removing cargo from the vehicle, which depends on the equipment needed and how easily it can be done.

• Chassis usage fee — For renting a chassis to support the cargo during transport.

• Drop fee — For dropping off a shipment temporarily when it cannot be loaded immediately, often due to scheduling issues.

• Congestion fee — Applied when overcrowding at terminals extends the total carriage time.

• Pre-pull fee — Applied for picking up a container from a port to avoid demurrage fees for a container exceeding the allowed free time at a terminal.

• Special care fee — Typically applied for handling fragile goods or when special equipment is required for hazardous, overweight, or refrigerated freight.

• Additional fees — Includes tolls, terminal charges, and additional stops required.

Challenges

• Delays: Major ports often face congestion due to high volumes of cargo arriving simultaneously, increasing wait times for trucks. These delays create bottlenecks in the supply chain, leading to missed deadlines and higher expenses.

• Regulatory compliance: Drayage operations are subject to various regulations, including weight limits and hours-of-service rules for drivers. Compliance can be complex and costly to manage, but it is necessary to avoid fines, disruptions, and reputational damage.

• Cost: Drayage charges factor in various fees which can be demanding to track. Fuel price fluctuations and other operating charges may also reduce profit margins.

• Sustainability concerns: Drayage trucks are often older and less fuel-efficient, contributing to air pollution and increased greenhouse gas emissions. To reduce environmental impact, companies must upgrade to cleaner vehicles or invest in alternative fuel sources, which can inflate costs.