What is Drayage? | The Undervalued Hero of Global Shipping

We tend to think of global shipping as the long-haul movement of goods over an immense distance and forget about integral components like drayage. In reality, short-haul local trips that contribute to the overall logistics of a shipment, often requiring just one shift from a truck driver, are vital for smooth supply chains with minimal delays. 

Over 60 million drayage movements occur in North America annually, with the market size worth more than $50 billion. No matter what you’re shipping or where it’s going, drayage will likely play a role at some point.

What is Drayage?

The term “drayage” originated in the 1800s and peaked in the 1930s, yet it is still becoming increasingly important today. Initially describing the short-distance transport of goods by dray horses from marine ports, drayage came to define the transporting of cargo by trucks over short distances, usually within one metropolitan area. 

Drayage often plays a role in the first and last mile of a supply chain, making it a vital contributor to a successful shipment. Because it frequently involves the movement of entire shipping containers, these trucks or carriers are usually equipped with specialized chassis to support the cargo.

What Are The Types of Drayage?

There are multiple types of drayage, each of which caters to different logistics and supply chain needs.

1. Pier Drayage:
   

   Pier or port drayage involves transporting cargo containers from a port to a destination like a warehouse or railway.

    

2. Inter-carrier Drayage:
   

   This type of drayage refers to transferring cargo containers from one carrier to another at a transport hub. This typically coordinates the movement of goods using different modes of transport, like transferring them from one carrier’s freight service to another carrier’s rail service. Inter-carrier drayage is at the core of intermodal transportation, as it allows the efficient and uninterrupted movement of goods between differing modes of transport.

    

3. Intra-carrier Drayage:
   

   This describes the transport of containers through one carrier’s network, like from an ocean port to a distribution hub.

    

4. Expedited Drayage:
   

   This form of drayage ensures the fastest possible transport of goods and is preferable for perishable items or goods in high demand.

    

5. Shuttle Drayage:
   

   Shuttle drayage moves excess containers into temporary storage to prevent issues like bottlenecks.

    

6. Door-to-Door Drayage:
   

   Door-to-door drayage is typically used in ecommerce or retail, as it involves the last-mile delivery of goods from the hub to the customer.

Why is Drayage Important?

Drayage significantly influences a supply chain, as these trucks are the links between many points in a shipment. Delays or missed pick-ups at these vital points in a linehaul can cascade to delay every other point in a shipment. Efficient drayage keeps goods moving quickly, allowing cargo to move continuously. This prevents additional storage costs like demurrage and minimizes congestion at ports. 

The benefits of efficient drayage are broad and can include:

• Increased customer satisfaction due to higher supply chain velocity and faster delivery times,
• Reduced transportation costs as a result of fewer delays, lower fuel consumption, and less need for storage of goods since they’re always on the move,
• Reduced environmental impact due to optimized routes and lower carbon emissions,
• Better trade facilitation thanks to the streamlined movement of goods and efficient inter-modal transport, and
• Job creation, as the need for workers like truck drivers and mechanics grows along with the industry. 

Drayage Best Practices

Multi-Party Collaboration

Coordination and communication between all shipping parties are crucial for drayage movements. Information like shipment details and accurate arrival times must be shared so that each party can plan and coordinate accordingly. 

The TecEx app makes this simple by allowing users to invite third parties to the shipment management process, making collaboration easy and keeping all members in the loop. Learn more about the app here.

Contingency Planning

Shipping globally means expecting the unexpected, from tornadoes to trade sanctions. Successful drayage requires robust planning and supply chain risk management to prevent lengthy delays and unnecessary costs. 

When you partner with TecEx, our extensive knowledge of these risks ensures you won’t be caught by surprise. We know how to navigate the most challenging shipping lanes, the latest trade wars, and other global events. On top of this, we offer 110% liability cover to protect you from potentially unavoidable risks.

Streamline your Consolidation and Deconsolidation of Goods

Firstly, shippers can streamline the drayage process and save costs by consolidating and inspecting loads before loading onto the truck. Ensuring cargo is packed correctly and effectively to minimize necessary handling simplifies shipments, saves time, and reduces risk. This is especially pertinent for intermodal drayage, where loads will pass from one carrier to a truck and then to the next carrier.

Secondly, deconsolidation should ideally be completed at a warehouse or hub rather than at the port. A short drayage movement can get your goods to a hub. This prevents port congestion and enables faster distribution of goods, making the final last-mile drayage movement quicker and smoother.

The TecEx warehousing solution allows you to consolidate, deconsolidate, and palletize your goods efficiently for well-prepared drayage movements.

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