Drayage includes the transportation of shipping containers, bulk goods, or other types of cargo, and is typically performed by local carriers that specialize in these short-distance moves.
Because drayage carriers haul goods out of the port, they are the first logistics providers to interact with goods, and so people often define drayage as being the “first mile” of the supply chain. Its impact, therefore, is critical to the shipment lifecycle. Drayage is required to ensure other logistics providers can ultimately deliver a shipment to its final destination. If errors are made in drayage, it can have a ripple effect throughout the supply chain. In short, the meaning of drayage goes beyond a simple definition.
Drayage operations are the backbone of the supply chain and are often family businesses built through entrepreneurial spirit. Carriers may run as few as five to ten trucks or up to hundreds of trucks, but each of these companies is important to this pivotal part of the supply chain. The history and definition of drayage are synonymous with those of a healthy supply chain—one does not exist without the other.
Drayage vs Intermodal transportation
At first glance, the drayage definition can appear to be the same as intermodal transportation. Intermodal transportation is indeed similar to drayage in the sense that rail-to-rail conveyance of containers ensures that goods reach their final, ultimate delivery point. Intermodal transportation, however, signifies a move that goes from rail to rail on its journey from the point of origin to the final destination.
Other differences define drayage as being separate from intermodal as well. Where drayage is primarily focused on pickup and delivery from a marine terminal, intermodal is focused on pickup and delivery between rail yards, typically at an inland hub. Chicago, Kansas City, and Memphis are examples of large U.S. rail hubs where intermodal trucking companies move containers from one rail location to another.
These two types of transportation logistics can be thought of as legs in the supply chain: both interdependent on one another and serviced by carriers.
For example, a container may start its journey in China where it is then transported to a marine terminal, loaded on a container ship, and ultimately picked up by another drayage trucking company upon reaching its destination in Southern California. If a container is not handled or picked up by a drayage trucker, it’s typically loaded onto rail and is then handled by an intermodal trucking company once it reaches a hub destination. This process ensures that the container ultimately ends up in the right city and at the right warehouse.
Drayage Works
There’s more to the definition of drayage than just what it is. How it works is also a crucial part of the drayage definition. A typical drayage transaction involves a drayage carrier working with a beneficial cargo owner, like Home Depot, Walmart, Toyota, etc., or a broker working on the cargo owner’s behalf. Drayage carriers receive loads that they are then required to pick up at marine terminals.
In advance of pickup, drayage operators plan their shift, day, week, or month based on their drivers’ availability, rates, assets, etc. Dispatching drivers is a critical—and hands-on—task for drayage trucking companies. Once a load is accepted and a driver is dispatched, the container must be transported from the marine terminal to a yard, warehouse, or railyard—often easier said than done.
Drayage operations often have specialized equipment and expertise in navigating the complexities of port operations, such as dealing with congestion, customs procedures, and security regulations.
The meaning of drayage
The movement of goods from the point of origin through to the point of destination is handled by logistics firms of all varieties, but several coupling points make drayage trucking particularly important:
Drayage provides the necessary first move of an import container from the port to the warehouse, allowing for the container to be unloaded and prepared for the rest of its delivery lifecycle.
Exports, too, are typically handled by drayage trucking companies as the first move in a container's journey to its final destination overseas.
As the launching point for the rest of the supply chain process, drayage plays a large, yet uncelebrated role in the modern supply chain. With the massive amount of cargo coming in through U.S. ports every day, getting drayage right is critical.
The challenges for modern drayage
While supply chain innovations over the last several years have led to turbo-charged productivity levels across all aspects of modern logistics, problems persist. Drayage trucking businesses of all sizes run into myriad challenges today. Some of the most prevalent include:
Pier congestion: When ports and piers are overloaded, it means longer wait times for drayage carriers. This, in turn, delays the delivery of goods, which can lead to increased transportation costs and reduced efficiency. Congestion can also impact equipment availability, leaving carriers with a shortage of available chassis, which causes further delays and operational inefficiencies.
Appointment challenges: Time is money in drayage and challenges such as port congestion, driver and equipment shortages, increasing port regulations, and even weather events all threaten drayage carriers’ ability to meet appointment parameters.
Asset utilization: When determining how best to utilize their assets, drayage carriers must factor in demand fluctuations, their capacity constraints plus equipment constraints at ports, as well as downtime to do maintenance and repair on their trucks. It’s not easy to get asset allocation and utilization right.
Container availability: Port congestion, equipment shortages, container imbalances, and seasonal fluctuations can all impact drayage carriers’ ability to secure available containers. When containers are not readily available, carriers have a harder time transporting cargo in a timely way, which can drive increased costs and reduced efficiencies.
These industry-wide challenges can cause delays and logistics headaches for drayage truckers and their customers. In addition, issues arising from outdated systems and solutions are frequent. A lack of visibility into container availability and the combination of integrated systems alongside legacy software systems frequently prevent dispatchers or operations teams from scaling by doing more with less. Many drayage operations still rely on Excel and Google Sheets, for instance, because their outdated legacy systems cannot integrate with more advanced solutions.
This lack of visibility often leads to containers and equipment being double-handled and drivers stuck waiting in line at marine terminals. These days, the future and definition of drayage include technology that can address many of today’s pressing drayage challenges and can help bring drayage operations into the modern age.
Transportation management systems (TMS), in particular, can be a drayage carriers’ best friend, helping to automate transportation processes, including planning, execution, and optimization. These benefits, in turn, help carriers improve operations, save time, and grow revenue.
Leveraging software in the drayage space enables carriers to operate their trucking businesses more efficiently and effectively. With capabilities such as automated container tracking, streamlined dispatching, paperless documentation, and digital invoicing, technology solutions can help modernize drayage operations.
A tech-enabled definition of drayage enables an approach that also makes it easier for drayage carriers to digitally connect with partners and customers throughout the transportation lifecycle. Instead of relying on time-consuming and error-prone manual communication tasks, carriers using a TMS have an automated way to interact.
PortPro makes drayage management simple, allowing you to define drayage in a new and innovative way.
PortPro is looking to usher in a new drayage industry norm through its suite of offerings, including its flagship product: a TMS designed with drayage in mind.
PortPro places operations at the top of the priority list to allow drayage truckers to scale their business by keeping them in a “single pane of glass.” With in-app reporting, easily accessible vessel-arrival information, document management, and more all in one place, operators can empower their teams. With PortPro, users experience a modern, web-based way to define drayage that serves their needs at the right time and place.
Drayage firms can take advantage of PortPro’s capabilities including:
Receiving load tenders electronically.
Dispatching straight to a powerful mobile app, skipping the need for dispatchers to make multiple calls and texts.
Enabling drivers to accept and reject loads at the tap of a button.
Keeping the operations team focused and informed with real-time information.
Uploading documents like TIR, POD, etc. at the tap of a button through the mobile app.
Enabling drivers to accept and reject loads at the tap of a button.
Looking for more information on the technological innovation of transportation management systems? Myriad software companies offer modern TMS options, sharing a wealth of information and resources for those looking to define drayage by making the leap from outdated tools to a streamlined, automated approach to transportation management.
