A Comprehensive Guide to Understanding Drayage Rates and Fees

Derick / October 31, 2024

A Comprehensive Guide to Understanding Drayage Rates and Fees According to estimates, the drayage services market is projected to grow at a compound annual growth rate of 2.52% till 2028, amounting to nearly USD 3 billion. In the world of logistics, drayage is the primary method for transporting goods across several transport modes before they reach their final destination. The basic purpose of drayage services is to ensure an efficient flow of goods between points A and B, but drayage costs can vary greatly depending on distance, cargo type or service level required. Information about how exactly drayage rates are determined and their precise value can be helpful for businesses looking out for the most cost-effective services for their supply chain. Standard Drayage Fees in Logistics Here is a breakdown of the common drayage costs: 1.Drayage Fee (Avg. $350 – 600 per move) Drayage fees refer to the primary or basic charges that apply for moving containers from, say, a port or rail yard to their next destination in one go. Trucking companies factor in the distance and peak demand in their fees. 2. Fuel Surcharge This additional charge generally comprises 35-40% of the total drayage fee on average. The charges vary based on the current fuel prices at a time. 3. Chassis Rental Drayage chassis are trailers rented to transport containers and can be estimated to be approximately $45 per day. Some drayage companies start charging daily rental fees after a certain grace period or some days for free services. Accessory Charges Trucks bound for different types of drayage may face logistical challenges along the way or external delays. These are accounted for in the accessory charges, which you may have to pay other than the standard drayage fee. A list of the common accessory charges is given below: 1. Driver Delay Fee (Avg. $75 per hour) These charges come into effect once the grace period comes to an end and the drive faces delay due to unforeseen circumstances, such as a heavily congested port or extended loading/unloading times. 2. Reefer Fee This fee applies in the case of refrigerated containers because of the additional energy and fuel costs. Reefer shipments are, therefore, more expensive than standard drayage services, costing an average of $125-150 per shipment. 3. Toll Charges These are estimated to be around $ 20 per route and depend on the route that drayage trucks use for cargo transport. 4. Layover Fees – $200 per instance Any external factor that causes a truck to wait overnight will result in extra charges for the customer. This may happen due to a scheduling conflict, heavy traffic at the post, or when trucks are delayed beyond 299 miles of travel. 5. Residential Delivery Charge- $150 per shipment Drayage caters to commercial deliveries for the most part, and hence, deliveries that involve residential addresses incur additional costs because they are relatively less accessible. 6. Tri-Axle Charge When a container’s load is beyond the weight restrictions, a tri-axle chassis is required to balance out the weight for smooth transport which costs around $150 per day. 7. Overweight Fee- $ 125 flat fee Shipments that exceed standard weight limits require additional handling, which is subsequently charged as an overweight fee. A specialized permit may also be required. 8. Scale Fee A key regulatory requirement is that containers be weighed before they start their journey. Each time a container is weighed, approximately $35 is added to the overall drayage costs. 9. Yard Storage Fees If a container’s stay at a terminal or storage yard goes over the allotted free time, an estimate of $45 would apply for each day spent at the facility. 10. Pre-Pull Fee Demurrage fees, typically $250 for a single occasion, are levied when a container is held at a facility beyond the agreed-upon time. This can be avoided by retrieving a container from the port before its scheduled pick-up time. Proven Ways to Reduce Drayage Costs The right strategy can prevent transportation costs from spiralling out of control and straining your budgets. Applying the following tips can help optimize drayage service costs. Negotiate Free Time Some drayage carriers offer an extended free time before they charge penalties or demurrage fees. A stronger relationship with carriers and port authorities can improve your chances of negotiating free time in your favor. Be Transparent with Carriers Be honest about what carrier volumes you aim for to avoid misunderstandings later on. Carriers are often too smart for this tactic and can detect when you overestimate your shipping needs to negotiate lower rates. Pick an Intermodal Drayage Provider Intermodal services include a range of transport modes as part of their package, rail, trucking, and ocean freight, which ensures the most efficient transport and hence lower costs. Optimize Route Planning A strategic approach to planning drayage trucking routes can bring down transportation expenses significantly. The costs are considerably lower when you steer clear of toll roads and peak times for port congestion. Utilize Full-Service Third-Party Logistics (3PL) Providers Prefer a 3PL drayage carrier that specializes in end-to-end logistics solutions encompassing drayage trucking, along with warehousing and transloading services. Bundled services not only come at a lower cost but can spare you the hassle of working with multiple service providers. Conclusion Drayage plays an essential role in helping goods transition smoothly between transportation modes but it comes with a set of expenses for every business that is eager to optimize its logistics. Understanding drayage rates and related charges from the outset ensures that businesses know what to expect in terms of finances and choose drayage services that minimize costs while enhancing supply chain efficiency. Working with a reliable drayage trucking company can help you manage your shipping expenses while ensuring your cargo moves seamlessly to its final destination. If you are looking for drayage companies in Miami, SF, we have your back. Contact us to get an estimated fee for your drayage freight and avail yourself of fast-track and efficient cargo delivery. FAQ’s 1.

Drayage

Drayage Services: An In-Depth Guide to Drayage in Intermodal Transportation

Derick / October 31, 2024

Drayage Services: An In-Depth Guide to Drayage in Intermodal Transportation Drayage is a central process in intermodal freight shipping where cargo is exchanged between different transportation modes. While cargo is moved in container ships from ports of different countries and trucks and rails are primarily used for logistics within the border, goods also go through a short haul form of transport within a single geographical area, and that’s where drayage comes into play. In this article, we cover what does drayage mean, an overview of six types of drayage services, and what factors affect drayage costs. What is Drayage? Drayage service meaning has a special history. It means a transport that involves a sideless cart originally led by a horse. Today, semi-trucks have taken the place of horses, but the concept essentially refers to short-distance transport where goods are moved from the port of entry to the next form of transport or some sort of storage. The drayage definition indicates its vital role in ensuring that cargo travels seamlessly across carriers before reaching its final destination. Drayage refers to a type of transport that covers freight over short distances, such as when shipping containers are moved between ports and rail terminals or warehouses. What is Drayage in Logistics? It is predicted that the global drayage services market will grow by USD 2,462.9 million from 2024 to 2029. Now, we’ll talk about what is drayage services in the arena of logistics. Drayage services act as an intermediary to facilitate the movement of goods between different modes of transport in the shipping process. Drayage is overseen by trucking companies operating within specific regions that act as third parties in transporting cargo efficiently and quickly. For businesses that are involved in international shipping, drayage services are highly important to move cargo from ports to minimize costs and delays. Intermodal Drayage Drayage is mostly seen in the context of intermodal shipping. Here, items are packed into standardized containers to facilitate movement from one mode of transportation to the next without repacking. An example of this would be a container lying at the port of Los Angeles that is destined for a transport terminal somewhere in the Midwest. Its journey from the port to the rail hub will be handled by drayage trucks. Drayage in Trucking If you are confused about what is drayage in trucking, then this refers to a type of freight transport that primarily uses trucks equipped with chassis trailers. These trucks are meant to carry containers over short distances from ports or rail terminals to their designated facility, which could be a distribution center or a warehouse. Drivers who handle drayage trucking are required to follow prevailing regulations and strictly adhere to timelines to ensure timely delivery. Importance of Drayage in Supply Chains The unprecedented growth of e-commerce and rapidly expanding global trade networks have spurred demand for drayage services. Drayage is colloquially referred to as the first mile, just like the first domino, because it has a domino-like effect on logistics operations. If anything goes wrong in the first drayage, this will have implications for the entire shipping process. Suppose a container remains stuck at a port and is not transferred to the next form of transport from where it can be moved to its end destination. The supply chain will collapse, resulting in delayed delivery and incurring massive costs for businesses. Partnering with an experienced drayage carrier has become a critical need for businesses to maintain their competitive position in the marketplace. When you work with a reliable drayage service provider, you benefit not only from more efficient logistics but also from lower shipping costs. Types of Drayage Service Now that you know what is drayage service, let’s explore the different types of drayage services in the logistics industry. Drayage services are generally available in 6 primary forms, according to the Intermodal Association of North America, where each serves a unique function in the supply chain. 1. Inter-Carrier Drayage In this drayage type, goods packed in shipping containers are transferred between two different carriers. For example, an incoming freight might move from a rail terminal to a trucking service. This service is especially important when several modes of transport are involved to ensure goods can move along swiftly without any disruption. 2. Intra-Carrier Drayage Here, containers are transported within the intermodal network of a single carrier or service provider. This means that the same company moves containers between the different facilities it owns, such as a container being moved from its port to a nearby warehouse. 3. Pier Drayage Pier drayage involves the movement of cargo via freight trucks between rail hubs and shipping ports. This is integral to the processes of import and export to expedite the delivery of containers to and from port terminals. 4. Shuttle Drayage Shuttle drayage is usually used when the railway or ports are short of space, such as during peak freight traffic. In this case, storage depots are normally used to temporarily store containers to free up space at the port for unhindered cargo flow. 5. Door-to-door Drayage Similar to a door-to-door service, the freight is moved directly from the port or rail terminal to the end point. Since the cargo moves in one go, bypassing other carriers, this ensures the cargo is subject to minimal handling for a smooth logistics process. 6. Expedited Drayage Expedited drayage is exclusively designed for shipments where timely delivery is a huge priority. Although the drayrage cost is higher for this premium service, it cuts down the transit time and offers fast-track delivery to meet urgent freight requirements. What Influences Drayage Rates? If you are thinking of procuring drayage services, the following factors can help determine the drayage fees that you will have to pay. Drayage costs are typically divided into chassis-split fees and drop fees. Generally, you are supposed to pay when a truck arrives at your place to pick up your shipping container, and additional charges apply if your container stops

Parking Lot Flooding for Florida Truckers in Dania Beach at a 3PL.

Company Services, Drayage, Logistics, Supply Chain

Miami Trucking Companies Navigating Hurricane Milton

Derick / October 10, 2024

Florida truckers have faced several challenges in recent months, from port strikes halting drayage operations to the recent landfall of catastrophic hurricanes. In response to these challenges, carriers will want to implement contingency plans to ensure the safety of their drivers. This article explores how they are adapting to these circumstances. While the Gulf Coast of Florida has evacuation protocols in place and minimal traffic, the Southeast Florida market, particularly in the Fort Lauderdale and Miami areas, remains relatively active. Despite heavy rainfall, high winds, and some flooding, drivers are managing to continue operations. However, flexibility is essential during these times. The current Florida market has seen a surge in spot market rates, with some carriers experiencing increases of 20-30% due to reduced capacity and heightened demand for available trucks. Historically, longer-haul truckers have struggled to find backhaul loads from Florida, but there is now an uptick in shippers eager to move their freight. For over-the-road drivers based in Florida, here are some key safety measures to consider while on the road: 1. Route Planning and Diversions Truckers should utilize updated mapping tools to identify and avoid flooded or damaged roads. Many are rerouting deliveries to bypass affected areas, ensuring safer and more efficient transport. Notable mapping tools for real-time updates include: Google Maps Waze TruckMap This is particularly important for long-haul truckers heading up the East Coast into states like Georgia and North Carolina, which were also affected by Hurricane Helene. 2. Load Management Carriers should adjust their loads as necessary to avoid overloading, especially under current weather conditions that may reduce vehicle stability on slick or damaged roads. This could mean reducing cargo weight when required. 3. Driver Communication Protocols Establishing clear communication channels between drivers and dispatchers is vital. Regular check-ins ensure that drivers receive real-time updates about road conditions and can report any issues they encounter. This proactive approach enhances overall safety and efficiency. Conclusion As Florida truckers navigate the challenges posed by hurricanes and severe weather, their ability to adapt and respond is crucial. By prioritizing safety through effective route planning, load management, and communication, truckers can maintain operations even in the face of adversity. The current surge in demand for freight services highlights the resilience of the trucking industry in Florida, offering opportunities for carriers willing to adjust and innovate. Through these efforts, truckers can ensure not only their safety but also the continued flow of goods during challenging times.

Containerized Freight Sitting at Port Miami

Drayage, Logistics, Supply Chain, Transloading, Warehousing

Navigating the Impact of the Port Strike as an Importer

Derick / October 1, 2024

The Port Strike has officially commenced, leaving many uncertain about its duration and repercussions. What’s clear is that all parties involved from importers to 3PL warehouse providers or trucking companies, are feeling the effects in one way or another. Manufacturers with commodities stuck at the ports, especially perishables, are facing significant challenges. These businesses will need to explore alternative logistics solutions to mitigate the impact of delayed container shipments. The best thing we can do is work together as logistics solutions providers and expand our networks within and outside our local communities. Key Considerations for Importers Engage Domestic Suppliers Given the disruptions, it’s crucial to assess your domestic supplier network. This may help reduce reliance on affected ports and streamline operations. 2. Adjust Port of Entry and Grow your Carrier Network If you’re shipping high volumes of containers, you may have already started routing your imports through West Coast ports. For businesses primarily serving East Coast customers, finding reliable final-mile partners might be very helpful. While many over-the-road carriers are available for dry van and reefer shipments, not all provide final delivery services. For instance, if a large retailer needs to transport freight from New York to retail locations in downtown Miami, collaborating with a final-mile carrier can ease deliveries through congested urban streets. A final-mile carrier may also have a warehousing terminal, where they can store your freight until your goods are scheduled to be delivered to stores or retail outlets. Expand Your Freight Forwarding Network and Consider Air Freight Depending on the nature of your freight and its volume, exploring air freight options can be a viable alternative, particularly for perishables that cannot remain in containers for extended periods. Many freight forwarders can quickly provide quotes for air shipments. Additionally, freight forwarders often have access to a wide network of trusted 3PL warehouse providers, which can be invaluable if you need storage solutions during the strike. If you switch to a different port of entry, your freight forwarder can help you find a reliable warehouse partner in that new location. 4. Collaborate with Local 3PL Warehouse Providers If you have containerized freight that you managed to retrieve from the port but urgently need to transport elsewhere, consider partnering with local drayage carriers and transloading warehouses. This combination of providers can efficiently move your freight to another mode of transportation, ensuring that the flow of goods continues despite disruptions 5. Non-Union Terminal Operators Whether you’re an importer or a logistics service provider, research non-union terminal operators in your area. While they may be saturated with requests, it’s worth reaching out. Crowley and King Ocean operate non-union vessels and still have some non-union port workers available, which allows them to continue pulling containers out of the yard Conclusion As a drayage carrier, we at Accurate Trailers are committed to doing everything possible to best serve our customers and provide additional logistics alternatives. One of the key solutions we’ve implemented is offering intermodal drayage services through Florida East Coast Railway, which allows for seamless transportation options even amid disruptions. Here are some providers in the South Florida market that can assist with logistics needs during this challenging time: Challenge Warehousing for 3PL warehousing and transloading Centerport Inc. for final-mile trucking services By implementing these strategies and leveraging available resources, businesses can navigate the challenges posed by the port strike more effectively, ensuring that they continue to serve their customers and maintain supply chain integrity. Adapting quickly and utilizing strong partnerships will be key during the Port Strikes.

Drayage

Why Choose Local Miami Drayage Companies for Your Freight Needs

Derick / October 1, 2024

In my last article, I mentioned about what to look for to ensure you pick the right drayage carrier for your containerized freight needs. In this article, we will expand on why prioritizing a local carrier for your given market can be advantageous. Local Expertise and Knowledge One thing I would like to note is that some carriers with extensive networks and regional hubs might market themselves as local carriers in markets like Miami. However, while they do have a presence in the area for freight hauling, their drivers may come from different regions or states and may not be familiar with the local territory. Local drayage companies have an intimate understanding of the region’s logistics landscape, including port operations, traffic patterns, and local regulations. This expertise allows them to navigate challenges more effectively, ensuring your containers are handled smoothly and efficiently. Personalized Service When you find a quality local drayage operator to work with, you’re likely to receive more personalized attention. Smaller, local operators can often prioritize customer relationships and tailor services to meet specific needs. Vast local network A local drayage company will have more local connections. Many local companies have established relationships with other businesses, including warehouses, distributors, and customs brokers, which can streamline operations and create additional synergies for your shipping needs. Conclusion Local Miami drayage companies can bring many benefits, from faster service and personalized attention to cost savings and local expertise. By choosing a local partner, you not only enhance your own operations but also contribute to the economic vitality of the Miami community.

Drayage

Choosing the Right Container Drayage Company in Miami FL

Derick / September 27, 2024

How to Choose the Right Container Drayage Company in Miami FL for Your Business Partnering with the right container drayage company is crucial for businesses that have a high volume of containerized freight coming into the ports. With so many options available, particularly in a bustling hub like Miami, it can be overwhelming. Here are some points to consider when evaluating a drayage carrier. 1. Evaluate Experience and Reputation Of course, positive feedback and reviews go a long way. Aside from just checking reviews, also consider asking a drayage provider about their experience in the industry. it’s important to ask potential providers about their experience in the industry. Sometimes, a company may only display a few years of records, which can give the impression that they are a startup and relatively new to the market. However, the LLC or division may be new, while the leadership has extensive experience in other trucking companies or well-established warehouse businesses. They may already really know how to run a logistics organization effectively and also likely have established relationships. Check to see if they have relationships with individuals such as port authorities, freight forwarders, 3PL warehouse companies, and customs brokers. 2. Assess Service Offerings Not all container drayage companies offer the same services. Consider what your business specifically needs. Do you require intermodal transport, warehousing, or specialized equipment? For example, if you often deal with oversized containers, check if they have the right equipment to handle those. Or if you require warehousing nearby, sometimes finding a warehouse company that also does in-house trucking makes scheduling a lot easier, not having to coordinate with multiple companies. 3. Check for Licensing and Insurance Ensure that the drayage company is fully licensed and insured. This not only protects your cargo but also assures you that the company adheres to industry standards and regulations. 4. Examine Technology and Tracking Capabilities In today’s digital age, technology plays a vital role in logistics. Look for a drayage company that offers real-time tracking and communication tools. This transparency allows you to monitor your shipments and stay informed about any delays or issues that may arise during transport. 5. Compare Pricing While cost shouldn’t be the sole determining factor, it’s essential to compare pricing among different container drayage companies in Miami FL. Request quotes and understand what is included in the pricing. Beware of companies that offer significantly lower rates, as this could indicate compromised service quality. Aim for a balance between cost and quality. 6. Evaluate Customer Service Excellent customer service can significantly impact your experience with a drayage company. Assess their responsiveness during your initial inquiries. A company that values customer relationships will be attentive to your needs and provide prompt answers to your questions. 7. Consider Reliability and On-Time Delivery Reliability is key in the logistics industry. Research the company’s track record for on-time deliveries. Companies with a strong history of meeting deadlines will help you maintain your own business schedules and commitments. 8. Schedule a Consultation Finally, consider scheduling a consultation with your shortlisted companies. This will allow you to discuss your specific needs, ask questions, and gauge their willingness to collaborate. A good drayage company will take the time to understand your business and propose tailored solutions. Conclusion Choosing the right container drayage company in Miami FL is a significant decision that can impact your supply chain efficiency. By carefully evaluating your options based on experience, services, reliability, and customer support, you can find a partner that aligns with your business goals. With the right choice, you’ll ensure smooth operations and timely deliveries, ultimately enhancing your overall logistics strategy.

View inside Port of Miami with large Vessel docked

Drayage

How Miami’s Unique Geography Impacts Drayage Services

Derick / September 26, 2024

How Miami’s Unique Geography Impacts Drayage Services Miami’s vibrant and dynamic geography plays a crucial role in shaping the drayage trucking industry. As a key hub for international trade, Miami’s geographical features create numerous opportunities for drayage operations. In this article, we will explore how Miami’s unique location influences drayage services and what this means for businesses looking to optimize their supply chains. 1. Strategic Port Location Miami is home to one of the largest cargo ports in the United States, PortMiami, which handles over 1 million TEUs annually—an amount that continues to grow year after year. Its strategic position along the Atlantic Ocean makes it a prime gateway for goods entering and exiting the country, particularly from Latin America and the Caribbean. In recent years, PortMiami has further positioned itself for sea trade with Mexico, leveraging its proximity to alleviate congestion at the U.S.-Mexico border. Route Optimization for Drayage at PortMiami Port of Miami Tunnel: The tunnel connects to the interstate highway system, significantly reducing port traffic that would otherwise require drayage truckers to navigate through downtown Miami. Florida East Coast Railway: This intermodal rail system is synchronized with PortMiami, Port Everglades, and Port of Palm Beach, enabling drayage providers to expand their service offerings for deliveries over greater distances. The rail network extends from Miami to Jacksonville and even reaches into Atlanta and North Carolina, providing an opportunity for drayage providers to service a larger customer base. Cruise Industry Opportunities: As the world’s leading cruise port, PortMiami offers ample opportunities for drayage providers to transport freight associated with the booming cruise industry. This enhances the flow of goods and supplies necessary to support cruise operations. 2. Diverse Trade Routes Miami’s strategic location offers access to vital trade routes, including I-95 and I-75, ensuring efficient transportation to inland markets throughout Florida and beyond. This connectivity strengthens drayage services and allows for flexible logistics planning, helping businesses expand their reach, serve a broader customer base, and minimize shipping delays. By understanding local traffic patterns and peak times, companies can further optimize their delivery schedules. 3. Industrial Warehouse Development In recent years, there has been a notable rise in industrial warehouse development throughout South Florida. As more third-party logistics (3PL) companies establish facilities to serve their import customers, the demand for local drayage providers has significantly increased. With a growing number of warehouses located near the port, drayage services become even more essential for efficient inventory management and timely deliveries. Partnering with local drayage companies can help businesses streamline their operations and reduce transit times. In summary, South Florida’s unique geography not only enhances the efficiency for drayage companies in Miami Fl, but opens up numerous opportunities for businesses looking to optimize their supply chains. By leveraging these geographical advantages, companies can navigate the complexities of logistics with greater ease.