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 for storage at some point in its journey. You can reach out to multiple providers for quotes to choose one that offers the best value for your drayage needs.
- Distance of transport
- Size and weight of containers
- Port congestion fees
- Storage and detention charges
- Fuel prices
Conclusion
Drayage is a small yet integral part of the shipping process without which the entire supply chain would be ineffective and inefficient. As the crucial first mile, it’s necessary for businesses to acquire top drayage services to satisfy customer expectations for timely deliveries.
As volumes of shipped cargo increase over time, drayage offers a robust solution to remove bottlenecks and promote a smooth flow of goods. Selecting the right drayage company is critical if you are to optimize logistics operations and contribute to supply chain efficiency. If you are looking for drayage services near you, contact us for a range of drayage solutions to fuel your success in the complex logistics landscape.
FAQs About Drayage Services
1. What is the Difference Between Drayage and Intermodal Transport?
Drayage is a form of short-distance transport, whereas intermodal transport utilizes multiple modes of transportation to move goods over long distances.
2. What is the Drayage Truck Rule?
The Drayage Truck Rule is a regulation that requires drayage services operating within California to actively work toward zero emissions by 2035.
3. Are there Risks Associated with Drayage?
There are risks with drayage as with any other form of shipping. Clearing customs can be a major issue, or your carrier might lack the capacity to accommodate your shipment once it reaches the port.
4. What is Drayage Service in Supply Chains?
Drayage functions to bridge the gap between long-distance shipping modes and local distribution networks so that cargo can be moved efficiently.
