Drayage is the short-distance transport of cargo, typically in the same metropolitan area. It forms a bridge between different, longer stages of a shipment’s journey. This process ensures goods keep moving, whether from a port to a warehouse or a rail yard to a distribution center.
The Role of Drayage in the Supply Chain
Drayage functions as the connective tissue of the supply chain, linking major transportation modes to ensure the fluid movement of goods. When a container ship arrives at a port, its journey is far from over. Drayage is the service that takes that container from the ship’s terminal and moves it to the next point in the logistical chain, such as a warehouse or a rail ramp.
This service acts as the “first mile” after ocean transport or the “last mile” before it. For example, a drayage truck will pick up a container at the port, transport it a few miles to a rail terminal, and position it to be loaded onto a train. Without this step, the container would remain at the port, causing a bottleneck.
The efficiency of drayage directly influences the speed and reliability of the supply chain. It is a coordinated process that requires navigating port congestion and adhering to strict schedules to ensure the seamless handoff of cargo. This function makes intermodal transportation—the use of multiple transport modes for a single shipment—possible and efficient.
Common Types of Drayage
The logistics industry classifies drayage into distinct categories based on the specific movement being executed. The Intermodal Association of North America (IANA) has established six primary classifications that are widely recognized.
Inter-Carrier Drayage
This is the movement of goods between two different transportation carriers. A common example is a drayage truck picking up a container from a seaport terminal and transporting it to a nearby rail yard managed by a railroad company. This type of drayage connects different legs of an intermodal shipment.
Intra-Carrier Drayage
Intra-carrier drayage involves moving cargo between two locations owned and operated by the same carrier. For instance, a railroad might use drayage services to move a container from its main rail hub to a smaller, affiliated intermodal terminal within the same city to optimize its own network.
Pier Drayage
This classification refers to the movement of an intermodal container from a rail terminal to a pier or dock within a port complex. A truck transports the container via public roads from the train to the ship. This service is for export cargo that arrives by rail and needs to be loaded onto a vessel.
Shuttle Drayage
Shuttle drayage is used to move containers to a temporary storage or parking area. This often occurs when a port or terminal is congested and lacks the space to store incoming units. A drayage truck will shuttle the container to an overflow yard until it can be moved to its next destination.
Expedited Drayage
When a shipment is time-sensitive or contains high-value goods, expedited drayage is used. This service ensures the container is moved with priority, bypassing queues and potential delays at terminals. It is a premium service designed for cargo that must meet a strict delivery deadline.
Door-to-Door Drayage
This involves the direct delivery of a shipping container from a port or terminal to the final customer’s location, such as a retail store or a manufacturing plant. As e-commerce grows, this service has become common for delivering goods directly to the consumer’s doorstep.
Key Factors That Influence Drayage Costs
The cost of drayage services is determined by several variables. The primary component is the base rate, often calculated based on the weight of the shipment or the distance of the haul. Heavier loads may require more resources and specialized equipment, leading to higher costs.
Beyond the base rate, fuel surcharges are a significant factor, tied to the market price of diesel fuel. Another cost is the chassis usage fee. Drayage trucks use a chassis—the wheeled frame a container sits on—and if the trucking company has to rent one, that cost is passed on to the shipper.
Accessorial fees, which are charges for services beyond standard transportation, can also impact the final price. Wait time fees are a common example; if a driver is delayed at a port or warehouse, the shipper may be charged. Pre-pull fees apply if a container is picked up from the port and stored at the carrier’s yard before being delivered.
The Importance of Drayage Shipping
Efficient drayage services help prevent port congestion. By quickly moving containers out of marine terminals, drayage frees up space and prevents bottlenecks that can halt the flow of trade.
This service is indispensable for companies that rely on just-in-time inventory management. Timely drayage ensures that raw materials and finished products arrive at factories and distribution centers exactly when needed, reducing storage costs and improving operational efficiency.
Drayage enables the connectivity required for modern commerce by bridging the gaps between transportation modes. This function allows goods to move smoothly, ensuring that supply chains remain fluid.