Drayage is the unsung hero of international shipping. It plays a small but vital role in transporting goods across small distances and keeping the world’s supply chains moving.
In this article, you’ll learn about the different types of drayage, how it works, its benefits and how to overcome some of the associated challenges.
What is the role of drayage in international shipping?
Drayage is the name for short-distance freight transportation. The origin of the term comes from “dray”, which is a low, heavy horse-drawn cart.
Horses aren’t used anymore, of course, but this transportation method is as important as ever. It is one part of a much longer logistics supply chain and usually occurs at the very start or end of the process. For example, drayage will move goods from warehouses to ports of departure and from destination ports to distribution centres.
It is particularly essential for intermodal shipping, where goods travel across multiple modes of transport—such as sea, rail, and road—without being handled directly.
You can think of it as a vital link connecting different transportation methods. Without it, there'd be no way to transport goods from a port to an airfield or train station. High-traffic hubs like ports and stations would also experience severe congestion and delays without drayage’s efficient transportation efforts. Drayage optimises the logistical flow, ensuring cargo arrives at the end destination promptly without excessive handling. The result is faster, more efficient and more cost-effective deliveries for businesses and consumers.
What are the different types of drayage?
There are several types of drayage services, each designed to address specific logistics needs within the supply chain. Here’s a closer look at the six primary types:
- Port drayage: This service moves cargo from a port to a warehouse, distribution centre, or other hub nearby. Port drayage is critical for importers and exporters, enabling them to handle cargo as it enters or exits the country efficiently.
- Inter-carrier drayage: Inter-carrier drayage connects freight between different carriers or modes of transport within a single area. This type of drayage often occurs when cargo moves from a rail yard to a trucking facility, or from one freight company to another.
- Intra-carrier drayage: Intra-carrier drayage refers to freight movement within the same carrier’s network. This could mean transporting cargo from one carrier’s hub to another, usually within the same area, allowing for streamlined internal transfers.
- Expedited drayage: This is a time-sensitive drayage service used when delivery is urgent. Expedited drayage is often employed for high-value or perishable items requiring immediate attention to ensure they reach their destination immediately.
- Shuttle drayage: When a port or hub experiences capacity issues, shuttle drayage temporarily moves containers to a nearby storage area to relieve congestion. This temporary storage allows hubs to manage overflow without long-term delays.
- Door-to-door drayage: Often used in direct-to-consumer logistics, door-to-door drayage involves moving goods directly from a transport hub to the customer’s location, simplifying the delivery process.
An example of drayage in action
Consider a scenario where an electronics company imports goods from the Far East to the UK. The shipment arrives at Tilbury and needs to reach a retailer in Manchester. Here’s how drayage plays a role in this process:
- Port drayage service: A drayage truck picks up the container from the port and transports it to a nearby distribution centre for the next leg of its journey.
- Intra-carrier drayage: The container is loaded onto another truck and moved to another distribution warehouse owned by the same carrier in Birmingham.
- Final drayage leg: The drayage provider completes the last mile by delivering the container to the retailer, where it will be unloaded.
This example highlights how drayage integrates with other transport methods to ensure goods reach their destination quickly and efficiently, ultimately enhancing the logistics flow.
The cost of drayage
The first time you may have encountered drayage is in a shipping invoice. While some logistics companies provide an all-in-one cost, others itemise charges into their constituent component.
The cost of drayage will depend on a range of factors, including:
- Distance travelled
- Shipment weight
- Special handling
- Tolls
- Demurrage fees
Shorter travel distances and lighter loads will naturally mean lower prices. If in doubt, ask your shipping provider for a full breakdown.
What are the benefits of an excellent drayage service?
An effective drayage service brings several advantages to carriers, importers and exporters:
- Less congestion: Moving goods out of ports and hubs helps reduce congestion, ensuring space remains available for new shipments and that cargo flows smoothly.
- Lower costs: Drayage minimises delays and storage fees, helping businesses avoid unexpected charges. In busy ports where space is a premium, drayage can be more cost-effective than holding cargo for extended periods.
- Better supply chain efficiency: Drayage serves as a bridge between shipping methods, allowing businesses to use the most cost-effective and efficient means of transport for each leg of a journey.
- More flexible planning: Expedited or shuttle drayage services help companies adapt to varying cargo needs, including urgent deliveries or temporary storage solutions.
- Happier customers: Fast and reliable drayage means goods reach their next stage sooner, improving delivery times and helping businesses exceed customer expectations.
- Environmental benefits: As more drayage providers incorporate zero-emission trucks, drayage helps reduce the environmental impact of logistics, particularly in urban areas.
How to overcome drayage challenges
Drayage services come with specific challenges that can impact the efficiency and cost-effectiveness of logistics operations. Below are some of the most common challenges and how to address them.
Port congestion
Ports become congested due to high shipment volumes, leading to delays in drayage services. Partnering with drayage providers with real-time visibility solutions and relationships with port authorities can help minimise these delays. Planning for shipments up to two weeks in advance (like we do at Pro Carrier) also helps to reduce delays.
Scheduling conflicts
Issues can occur when shipments arrive before drayage services are available. Overcome this issue by working with carriers who operate flexible schedules, have a large fleet of vehicles and a dedicated customer service team that can rectify scheduling issues.
Costs
Drayage services can be expensive due to additional fees like fuel surcharges or congestion charges. Transparent pricing models and partnerships with reliable drayage providers can help businesses manage these costs effectively. Working with multiple carriers can also help you negotiate the best possible price.
Communication and coordination
Poor coordination between drayage providers and other links in the supply chain can lead to delays and inefficiencies. Leveraging technology that enables real-time tracking and communication can streamline coordination, keeping all stakeholders informed and aligned. It also pays to work with a single logistics provider who arranges and oversees every step of the process.
Trust Pro Carrier to keep your goods moving
At Pro Carrier, we recognise the vital role of drayage in international logistics. Whether moving goods from ports to warehouses, handling intermodal transitions, or delivering the final mile, our team understands the importance of efficient and reliable drayage services.
Moreover, we’ve designed our service to overcome some of drayage’s biggest challenges. Horizon, our all-in-one supply chain tool makes it easy to track your goods across the globe and adjust schedules as necessary. We arrange procedures like customs clearance and onward movement two weeks in advance to avoid delays. And, if they do occur, we have an exceptional customer support team who are on hand to help.
Find out how we keep your goods moving smoothly by speaking to one of our experts today.