Have you heard the term drayage when referring to logistics? Read below to learn more about what drayage means and why it’s important.

What Is Drayage?

Drayage is defined as both the transportation of freight from an ocean port to a destination and also the process of transporting goods over a short distance (or the “first mile”). If you think of all the steps it takes for a shipment to go from an initial boat to its final destination, drayage is the first step or domino to fall in this chain reaction.

The term drayage is mainly used in the container shipping industry, with departure and arrival points typically in the same metropolitan area with little to no focus on long-haul movements. Sometimes, the term “drayage” can be confusing as many carriers think it just means going to a port; however, that’s not always the case. Even though drayage loads usually start at a port, they often have several steps before reaching their final destination. These steps can include stops at a yard, warehouse, or rail terminal.

What Do Drayage Services Include?

Drayage services include shuttle, pier, door-to-door, inter-carrier, intra-carrier, and expedited services. Shuttle drayage is when a unit is moved from a hub to another parking lot, often because the railroad has run out of room at the hub. Pier drayage moves units from a rail hub to a dock or pier. Door-to-door drayage is a retail drayage that moves a unit to a customer location. Inter-carrier drayage moves a unit across town from one railroad to another to continue the move. However, Intra-carrier drayage moves units from the rail hub to the intermodal hub to extend the reach. Lastly, expedited drayage usually involves time-sensitive freight and is transported over the road to reach its destination on time.

What Is The Importance of Drayage?

Drayage is essential to shipping logistics and is often called the “first mile” because it significantly affects operations. Although drayage might seem like a minor part of shipping, it’s actually a crucial part of logistics and supply chain management. The fast shipping you enjoy, where you order something online and it arrives at your door in two days or less, relies heavily on drayage.

For example, drayage facilitates container transfers, allows timely movement in supply chain shipping, speeds up empty container repositioning, and keeps the supply chain steady. While short-distance transport is a small piece of the supply chain, it is essential!

How Is the Cost Of Drayage Determined?

The cost of drayage and its fees are often calculated based on the weight of the freight or container. Often times, a base fee is charged for every 100 pounds of weight. Additionally, there can be a line haul rate, port charges, drop fees, yard pull fees, and even special handling charges. Packing efficiently and scheduling freight accurately can reduce the cost of drayage. This is where a logistics team like Trivergix could help cut costs for your business.

Now that you know what drayage means, you can better understand its essential role in logistics!