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 5th, so you have June 5th, 6th, and 7th, in which your container can sit there, free of charge. Once June 7th approaches, that is called your Last Free Day (LFD). LFD is a term you will hear very often. Once it’s June 8th, 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.
LEARN MORE ABOUT TRINITY'S DRAYAGE SERVICE.Flatbed shipping is an essential part of the logistics industry.
Flatbed trailers are incredibly versatile and offer many benefits to shippers. Not to mention, flatbed shipping has been on the rise in recent years. In this blog, we’ll divulge to you our comprehensive knowledge of flatbed shipping so you can master this transportation mode.
WHAT IS A FLATBED TRAILER? FLATBED SHIPPING?
Flatbed Shipping
Flatbed shipping is often the transportation choice for cargo that doesn’t need the enclosure of a dry van. It’s ideal for cargo that cannot be loaded or unloaded from a dock as the shipper or receiver can load or unload from a variety of ways. The design of a flatbed trailer allows for cranes and forklifts to unload and load goods from a loading dock, from the side with a forklift or crane, or from above with an overhead, gantry, or crawler crane. This makes a flatbed trailer versatile and critical for numerous loading and unloading scenarios including at job sites, warehouses, and distribution centers.
Flatbed Trailer
A flatbed trailer is the most common type of open-deck trailer used in commercial, over-the-road, long-haul, and specialized trucking such as oversized or over-dimensional shipments. A flatbed trailer is a 48ft or 53ft trailer, that can accommodate loads up to 48,000lbs. They typically have two axles, air-ride suspension, and kingpin for a standard 5th wheel hook up.
Flatbed Freight
Flatbed freight tends to be more industrial than truckload dry van freight. There is a wide variety of flatbed freight in the marketplace. Some higher volume products like lumber or building supplies will generally pay less than more industrial items that support our country’s energy and core infrastructure needs, like construction equipment, generators, fabricated steel, and other project or job site-related freight.
WHAT CAN BE HAULED ON A FLATBED TRAILER?
The most common freight shipping uses for flatbed trailers are:
o Formed concrete items
o Lumber
o Construction materials
o Steel beams
o Scaffolding
o Trusses
o Electrical transformers
o Oil, gas, and petrochemical equipment
o Solar panels or wind turbines
o Commercial heating and air conditioning units
o Landscaping materials
o Large quantities of wrapped and stackable products
WHAT INDUSTRIES USE FLATBED TRAILERS?
Because flatbed trailers have no enclosure, the freight they carry can be versatile and their use extends across several industries, such as;
o Housing
o Construction
o Renewable energy
o Agricultural
o Warehousing
o Manufacturing
o Mining and drilling
o Military
o Automotive
o Landscaping
WHAT ARE THE BENEFITS OF A FLATBED TRAILER?
There are several benefits to using a flatbed trailer for your freight. With a flatbed trailer, there is dimensional flexibility for loading or unloading freight since there are no physical walls or a ceiling to restrict its use. Any cargo that is oddly sized or irregular-shaped can be easily moved with a flatbed trailer.
WHAT ARE THE DISADVANTAGES OF USING A FLATBED TRAILER?
When selecting the type of trailer your freight needs, you should know the disadvantages of each. Compared to traditional hauls, all flatbeds take considerable skill, effort, and time.
Since there are no physical walls to restrain freight, cargo securement and balance are two significant concerns with flatbeds. The FMCSA has a lengthy section in rules specifically for securement, as insecure cargo is a serious safety hazard.
Proper securement is needed for your freight too because if not done correctly, your freight can get damaged from the securement itself. Also, shipments often shift some during transportation, so even weight distribution and securement are necessary.
Another disadvantage to flatbed trailers is that there are no physical walls. It’s a positive for loading and unloading. Still, it can also be a negative as no enclosure means dealing with the elements (wind, rain, snow, sun, animal or human interference, truck smoke/smog, dust, and road debris). To combat this, there is the option of tarping your freight or using a Conestoga trailer.
There are even more significant risks and responsibilities with any oversized freight as these shipments have even more strict regulations to follow.
Looking for all you need to know about Over-Dimensional Shipping?
FLATBED SHIPPING TIPS
Know your cargo
Be sure to know all the details of your shipment. This includes commodities, value, dimensions, and weight. This information will help logistics providers know how to properly secure your cargo ahead of time.
Understand what trailer you’ll need
Familiarize yourself with the different types of flatbed trailers before booking a shipment so you can make the most cost-effective and safe choice. Each type of flatbed trailer has certain limitations. For example, a specific flatbed trailer like extended trailers and Conestogas can be harder to find so your provider may need advanced notice when they are required.
Be aware of accessorial charges
Flatbed shipping may involve moving specialized loads which can need special equipment or extra services. Make sure you have the proper equipment and services needed for your freight to avoid extra charges, freight damage, or delays.
Choose to work with an expert
Arranging flatbed shipments on your own can be time-consuming and expensive, making sure all regulations are met and your cargo travels safely. Consider working with an expert in flatbed shipping to help secure capacity and locate the right equipment for your freight.
FLATBED RATES AND SEASONALITY
Freight shipping demand, which includes flatbed demand, is something that is often based seasonally. No matter the market, shipping rates fluctuate throughout the year and rise as the demand for freight rises.
Flatbed shipping is very closely connected to construction and industrial production, which can be highly dependent on the weather. These industries often slow down in the winter months, so normally, the demand for flatbed shipping will soften at the end of the year.
Smaller to medium-sized companies often slow down during winter and resume activity when warmer weather returns. However, larger companies are affected less by the seasonality and continue to move their commodities regardless of the time of the year.
Because of the seasonal rise and fall, you’ll find volume and rates lowest in the late fall/early winter, with the peak flatbed season being from April to October. This is when the volume of flatbed loads is highest, as are the rates.
FLATBED SHIPPING WITH TRINITY LOGISTICS
Did you know Trinity Logistics is an industry leader in brokering flatbed freight to small and midsize carriers throughout North America?
Our vast network of Independent Freight Agents, combined with our Regional Service Centers deliver the best-in-class flatbed shipping through our expert carrier relationships. We accomplish this by supporting core energy and infrastructure clients with their project-based, unique, and often specialized freight.
Learn more about Trinity's services