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. What is the Average Drayage Rate?

Drayage rates vary depending on the geographical area they serve, level of congestion at ports and seasonal demand. Nationally, local drayage rates lie between $350-600 per load, while regions like South Florida charge between  $300-600 per move for short-haul routes.

2. How Can I Find the Best Drayage Trucking Company?

Look for drayage trucking companies that not only offer the best pricing but have strong customer records and positive customer reviews. You can then compare companies based on the service they provide, like container drayage, freight logistics or intermodal drayage, based on your supply chain needs.

3. What is the Difference Between Port Drayage and Rail Drayage?

In port drayage, containers are moved from ports to nearby distribution centres or railway yards, whereas containers are moved from rail terminals and their end point in rail drayage. 

4 . How Can I Avoid Unexpected Drayage Fees?

You can request providers to provide quotes, including a comprehensive range of rates such as service fees, chassis rental and fuel surcharges, and any extra accessories charges to avoid hidden costs.