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Drayage is a key element in international shipping. It’s necessary for small and medium-sized businesses (SMBs) to gain a clear understanding of it, whether they’re managing global trade on their own or working with a digital freight forwarder to help streamline their operations. An insufficient understanding of the drayage process could lead to potential delays and additional costs.
In this guide, we’ll discuss the importance of drayage in international freight shipping, its function, its history, how it might affect your business, as well as how freight forwarders can assist with it.
What is Drayage in International Shipping?
Drayage is the short-distance movement of goods, usually from an ocean port to a different location, such as a distribution center or customer premises. Specialized trucks and carriers are involved in these local pick-up and delivery operations. In addition to basic transport, drayage services may also include trans-loading services, which involve transferring cargo between containers or trailers, and breakbulk services, which include unloading cargo from a container or trailer and reloading it onto another vehicle. Drayage serves as a vital link between various transportation modes, efficiently moving goods to their final destination.
In most cases, it facilitates the movement of ocean freight containers between a maritime terminal and a nearby rail yard, distribution center, or customer location.
The term “Drayage” can also be used to refer to the associated fees, which may vary between providers and can be broken down into components like Chassis split fees required at the port and drop fees for potential delays and hang-ups.
The Role of Drayage in Shipping and Logistics
Drayage is an essential yet often overlooked aspect of shipping logistics that is vital to international trade and the local economy. On an annual basis, more than 11 million maritime containers arrive at U.S. seaports, with an additional 11 million coming in by truck at land borders and 2.7 million by rail. From this perspective, drayage serves a pivotal role in the logistics industry worldwide as an essential link for short-distance transportation of goods, often bridging the gap between ports, air freight terminals, and final destinations. This operation ensures that cargo moves efficiently, contributing to the fluidity of supply chains on a global scale.
The Different Types of Drayage
These different types of drayage cater to various logistics needs and play crucial roles in supply chain management:
- Intermodal Drayage: Involves the transfer of shipping containers between different modes of transportation (e.g., ship to truck or train to truck). It is crucial for connecting the global supply chain.
- Door-to-Door Drayage: This type of drayage focuses on the transportation of retail goods, moving them by truck to their final destination, typically from a warehouse or seaport to a retail location.
- Inter-Carrier Drayage: The movement of cargo within a specific region from one terminal or carrier to another in the midst of its journey.
- Expedited Drayage: Providing drayage service to time-sensitive freight under a tight schedule.
- Intra-Carrier Drayage: Transporting freight from a carrier’s dock to the same carrier’s intermodal port.
- Pier Drayage: Transports cargo to and from ports, handling containerized goods from ships to nearby destinations.
- Shuttle Drayage: Moving loaded or empty containers to short-term storage.
The History of Drayage
Drayage traces its roots to ancient times when merchants relied on horse-drawn carts with dray-horses to move goods within cities and ports. At this period, throughout the 1800s and early 1900s, the physical abilities of the horses limited the delivery distance to short trips, carrying the heavy, bulky load between marine ports, railroads, and canals.
Over time, drayage evolved in parallel with transportation innovations. During the 19th century, the Industrial Revolution brought about significant changes in drayage. Steam-powered vehicles and, later, trucks replaced horse-drawn carts, increasing the efficiency and capacity of short-distance transport. The expansion of railways and the development of standardized shipping containers in the 20th century further revolutionized drayage, allowing for seamless intermodal transportation.
Today, drayage services are a vital part of international freight forwarding. With the ongoing advancements in technology and sustainability, the history of drayage continues to evolve, adapting to the changing needs of the modern supply chain.
Frequently Asked Questions Concerning Drayage
What is the Origin of the Word “Drayage”?
The word “drayage” draws from historical origins, referencing the horse-drawn carts (drays) used to transport goods from docks to warehouses in earlier centuries. However, today’s drayage involves an array of sophisticated logistics systems and powerful heavy-duty trucks.
How Does Drayage Affect Supply Chain Efficiency and Intermodal Shipping?
Intermodal shipping relies on the seamless transfer of goods between various modes of transportation, like ships, air freight, and trucks. Drayage bridges these transitions by transporting containers between transportation hubs, such as ports and distribution centers.
This function is crucial for several reasons:
- Efficiency: Drayage ensures swift and efficient cargo shifting between different transport modes, reducing delays and keeping the supply chain on schedule.
- Connectivity: It enables the integration of diverse transportation networks, creating a comprehensive and interconnected logistics system.
- Cost-Effectiveness: Drayage can optimize routes, minimize transportation costs, and enhance the overall competitiveness of intermodal shipping.
- Global Trade: With the growth of international trade, drayage facilitates the movement of containers from ships to inland destinations, supporting the global exchange of goods.
Essentially, drayage is the backbone that transforms intermodal shipping from a concept into a practical, efficient, and cost-effective reality.
What Will Impact My Drayage Fees?
Drayage fees will be different for each provider and will be impacted by different factors, such as weight and size of shipment, distance, origin and destination, mode of transport, and other more specialized factors, such as fragile goods.
It is important to note, however, that drayage itself is often only one aspect of the overall shipping process, and the cost will be included in the overall shipping cost when using a freight forwarder.
How Does Technology Help Improve Drayage Services?
Advanced technologies such as GPS tracking, electronic logging devices (ELDs), and mobile apps have streamlined communication between truckers, dispatchers, and customers. Advanced monitoring provides valuable insights into shipment status, estimated delivery times, and potential disruptions, improving efficiency and ensuring success.