You can consider drayage service the unsung hero of shipping. It’s crucial to global supply chains, bridging the gap for both intermodal and international shipments.

Growing businesses often develop a need for drayage services but can easily get overwhelmed by it. Unlike truckload or less-than-truckload (LTL), getting your items picked up and delivered with drayage shipping sometimes isn’t a straightforward process. From port congestion to demurrage, it’s easy to get lost in the tangled process of drayage. Yet, with a few quick tips and the right approach, you can make use of drayage services to your supply chain’s advantage.  

What ARE COMMON CHALLENGES WITH DRAYAGE? How Can I avoid Them?

Route Planning

One of the primary challenges faced by shippers handling drayage services is route planning. Ports and rail terminals often operate in congested cities with lots of traffic and frequent road closures. Poor route planning can lead to delays, missed appointments, increased fuel consumption, additional fees, and, most of all, frustrated customers.

Chassis/Equipment Shortages

Just like there can be ebbs and flows with truck trailer capacity, drayage brings the concern of its own equipment shortages. Chassis are what the containers sit on when hauled by the carriers. It’s important to mention that drayage carriers don’t own chassis. Instead, they rent the chassis from the port or terminal, thus adding an additional complexity to drayage services. Chassis shortages most often happen during peak shipping seasons and can create delays or additional costs for shippers.

Port or Terminal Delays

Delays can happen at the ports or terminals for several reasons. Unforeseen events like canal blockages (Suez Canal), the Francis Scott Key Bridge collapse, or possible rail strikes have most recently created delays for shippers. Customs clearance is often the most common cause of delays as the process can be intensive, and any improper documentation or misclassified products can cause a holdup. Container reshuffling can also be an issue from time to time when there are too many containers, whether full or empty, at the ports or terminals.

Additional Charges

Additional charges may be the bane of drayage services, second to delays. Drayage can come with many accessorial fees that can catch shippers off guard if not prepared. The most common fee you’ll hear about in drayage services is demurrage.

Once a container is delivered to the port or terminal, you’re given a set number of “free days” for it to be picked up by a drayage carrier. This is called your Last Free Day (LFD), and that’s the date you want to ensure your container is picked up so you won’t face this additional charge.

There are also drop fees. Drop fees are for when the drayage carrier must drop the container and then come back to pick it up and return it empty to the port or terminal.

Lastly, if the empty container is returned late to the port or terminal, that’s an additional fee.  

Lack of Transparency or Communication

With drayage services, you really need to have a clear picture of what’s happening if you want to reduce the chance of accruing any additional charges, not to mention any delivery delays or customer dissatisfaction. Effective communication between shippers, carriers, logistics providers, and port or terminal authorities is essential for smooth drayage shipping.

TIPS TO Avoid DRAYAGE SERVICE CHALLENGES

If you’ve experienced any of the previously mentioned challenges with drayage service, the great news is there are really only two tips you need to make it seamless.

Proper Planning and Time Management

Most of the challenges with drayage are caused by improper planning, unforeseen circumstances, or misinterpretation at the port. Proper time management and planning are essential to avoid those challenges in the first place. Ensuring you have properly evaluated and documented your freight, selecting the right drayage carrier based on your needs, and taking into consideration factors like port or terminal timings or traffic.

Additionally, stay in the know of what’s going on in the market. Are there any anticipated delays or disruptions that could change your plans? Do you have a contingency plan in place should an unforeseen event occur? The more planning you’ve made ahead of your drayage shipment, the better your supply chain will operate.  

Work with the Right Drayage Provider

Working with the right provider can significantly impact the success of your drayage service. While that tip is easy to state, how do you determine if a provider is the right one for your needs?

When searching for a drayage service provider, you should ensure they:

• Gain you access to reliable capacity with experienced carriers,
• Offer excellent customer service and clear and timely communication,
• Technology tools to provide you with shipment visibility and tracking,
• Accurate billing practice,
• And has a high on-time delivery percentage.

By prioritizing these characteristics when looking for a drayage service provider to work with, you’ll quickly find that selecting the right one will improve your company’s competitiveness and service by helping you overcome these common challenges.

WORK WITH TRINITY FOR The Best DRAYAGE SERVICES

Speaking of reliable drayage service providers, you’re currently hot in your search already!

Trinity Logistics is a nationwide, top-rated third-party logistics (3PL) provider capable of helping you overcome any challenges you’ve been facing with your drayage service. You should consider us because:

Trustworthy Carrier Relationships

We treat and respect our carrier relationships and aim to build a strong partnership with each one to help their businesses be successful. Because of that, we’ve built trusted partnerships with those in our carrier network, gaining you access to the capacity you need and the service you want.

24/7/365 Support

No matter what happens, we’re ready to support you around the clock. We have a dedicated After-Hours Team to continue the monitoring of your freight and are ready to quickly resolve potential challenges, no matter the time of night, holidays, and every weekend.

Tracking and Tracing

We understand transparency is key to your drayage success, so we offer several ways to view and keep track of your freight, no matter the time of day.

Team of Experts

Our only job is logistics. It’s what we handle day in and day out. We’ve been working in this industry for 45 years and have seen all the ups, downs, delays, and disruptions the freight market has thrown at us, so we know how to handle tough situations. Additionally, we stay knowledgeable about what’s going on and keep you informed of anything that could come your way, with a backup plan at the ready.

Clear Communication About Charges

From the start, we are transparent about costs and help you understand all the different charges that you may see or come across with drayage service.

Your Trinity relationship will provide a list of any potential charges that may arise, such as any overweight, drop, or hazmat fees. Our goal is to ensure you know exactly what to expect so there are never any surprises.

An additional benefit to our trusted carrier relationships is our capability of keeping any fees from the port tied to the clearance of any containers from being billed back to you and being able to be competitive with those drayage rates.

Yes, drayage services can be complex and challenging at times, but it doesn’t have to be if you choose to work with Trinity Logistics.

Have you ever wondered what drayage is? Perhaps you hear the term mentioned by other shippers, motor carriers, or your logistics providers. You’ve likely heard some other terms associated with drayage, like demurrage or drop fees, and are curious what those are. Well, if drayage is piquing your curiosity, we’re here to help you learn what it is and if it’s for your business. Here are the most asked questions we receive about drayage from our shipper relationships.

What is Drayage?

This is a great question. You’re probably wondering, what does drayage even mean? Essentially, drayage is the local movement of a container from point A to point B, usually less than 100 to 200 miles. Point A and point B can be moving it from a terminal or port to a receiver or from a shipper back to the terminal or port location.

How Does Drayage Work?

There are two different forms of drayage – imports and exports.

For example, let’s say you have an imported container coming into the U.S. from another country into a terminal, like Los Angeles. As your third-party logistics (3PL) provider, we help you arrange the move of that container to be picked up by a drayage carrier at the terminal and transported to its destination or receiver. 

Now, for the second example, let’s say you have freight that you need to get transported on a ship from the U.S. to another country. As your trusted 3PL, we’ll help arrange a drayage carrier to assist you in getting your freight to the port. That drayage carrier will pick up an empty container from the terminal and bring it to your pickup location to get loaded. Then the drayage carrier will take the container with your freight to the port to be loaded onto the ship.

Why is it Called Drayage?

The term dray refers to the movement of freight in a local setting, so a very local move. The word dray stems from moving freight or something heavy in a cart or wagon with no sides. This used to be done using horses, so you’d have dray horses moving dray carts. However, now the containers have replaced the carts, and trucks have replaced the horses, but the movement of freight still refers to a short, local move.

What’s the Difference Between Drayage and Freight?

Drayage itself is the movement of the freight. But what is the freight? The freight is the actual product being moved via drayage.

What is Demurrage?

First off, it’s pronounced like “duh-mur-uhj”. As a customer, you may see or hear the term demurrage from time to time. Essentially, it’s a storage fee.

Once your container arrives at its terminal or port, they are going to give you a certain number of days in which your container can sit there for free.

For example, let’s say you have three free days. Your container arrives on June 5^th, so you have June 5^th, 6^th, and 7^th, in which your container can sit there, free of charge. Once June 7^th approaches, that is called your Last Free Day (LFD). LFD is a term you will hear very often. Once it’s June 8^th, that is going to be the first day of demurrage, or the terminal or port charging you for storing your container and taking space in their yard.

Why is Drayage Important?

You may be wondering, what’s the big deal with drayage? Why do I hear this term so often? What do I need to know about drayage?

Drayage is important because it’s another mode, another way to move your freight. Instead of a standard truckload or less-than-truckload (LTL), it’s another way to get your freight overseas to its destination in the U.S. or from the U.S. to overseas. Really, it’s another way to reach your market or suppliers that may not be located here in the U.S.

What is a Drop Fee in Drayage?

This is important, as you want to know all the fees you may incur. You may be told that there’s a drop fee on your shipment. In a traditional shipment when picking up or delivering, they are being loaded or unloaded right then and there. This is what we call a live load.

In drayage, if a receiver says, “I need you to drop this container today, but we likely won’t be able to unload it until tomorrow. I’ll let you know once we can unload it and then you can come back.” This is where a drop fee comes in. Since the drayage carrier will have to drop the container and then come back to pick it up, the drop fee is a charge by the carrier for having to come back and pick up the empty container to return it to the terminal or port.

You want to make sure you’re having conversations with your logistics provider to get a full understanding of what’s needed for that container. Are they loading and unloading live or is it loading and unloading as a drop? That way you know whether to expect any drop fees.

What is a Chassis? Who Owns Them?

A chassis is the underbody of the truck and container. It’s what the container sits on. Pickup trucks have chassis, as do your 53-foot dry vans. 

Drayage carriers do not own chassis. Instead, the drayage carriers must rent the chassis from the terminal or port. Once the drayage carrier has the chassis hooked on, a crane will load a full or empty container onto the chassis for them to transport.

What is Overweight for Drayage?

Every drayage carrier has slightly different weight limits, but universally there are some general limits.

First off, you have different types of containers and sizes. The standard sizes are 20-foot and 40-foot containers, and you have refrigerated (also referred to as a reefer) or dry containers.

Refrigerated containers will be able to hold a little less than your dry containers because reefer containers hold heavier freight, like frozen goods. They also sometimes have generators connected to them as well, taking away from the amount they can carry.

A 20-foot refrigerated container can hold up to around 36,000 to 38,000 pounds.

A 40-foot refrigerated container can hold up to around 38,000 to 40,000 pounds.

A 20-foot dry container can hold up to 38,000 to 40,000 pounds.

A 40-foot dry container can hold up to 42,000 to 44,000 pounds.

Make sure you’re having a conversation with your logistics provider to get a full scope of the weights that can be handled so your freight can be loaded correctly on those containers.

Who Needs Drayage?

Well, if you’re reading this article, you might be considering drayage because there may be some point at which your business will need it. It’s a great mode and tool to have when you may be talking to other suppliers overseas. Drayage is one way to service them. For example, with drayage, you can say, “Not only can we get your freight from Germany to California, but we can do that final mile delivery for you as well.” It gives you more to offer your partners and another way to move your freight.

How is Drayage Cost Calculated?

As a customer of Trinity Logistics, we want to make sure we’re transparent with you and that you understand all the different charges that you may see or come across.

Typically, you’re going to have three charges that you’ll see on most of your drayage quotes.

First, there’s your line haul. That’s moving the freight from point A to point B.

Then, there’s your fuel surcharge, which is a percentage of your line haul for fuel expenses.

Lastly, there’s the chassis charge.

As far as any additional charges, your Trinity relationship will provide you with a list of any potential charges that may arise, such as that overweight fee, drop fee, hazmat, or refrigerated fee. We want to make sure you know exactly what you’re being charged so there are never any surprises.