The name drayage was coined when an open cart drawn by horses was the finest way to move large items. Drayage services today move products over small distances, usually within one day of pickup.
Drayage and Container Transport: Essential for Smooth Shipping Operations
Drayage refers to the transportation of shipping containers over short distances, typically from ports to interior facilities for unpacking, reloading, and final distribution. This process is a crucial part of domestic freight shipping and transportation, as it involves collecting cargo from various locations and delivering it to its final destination. Ensuring smooth and efficient drayage operations is vital for minimizing delays and logistical issues in the shipping process
A significant factor influencing delivery delays and logistical issues is a lack of warehouse efficiency.
This is obvious in freight market forecast forecasts for the coming year.
Capacity procurement, container loading and unloading, port delays, and many drayage challenges continue to afflict the supply chain.
Container drayage is a big worry for management due to rising demands, continued delays, frequent COVID shutdowns, a lack of labor, and increased customer pressure.
Warehouse efficiency relies on smooth transitions from one stage of the shipping process to the next. When delays occur, they not only slow down the flow of that specific load but can also cause delays with additional orders, quickly creating a snowball effect. Long dwell durations and port delays are discouraged by per diem and excess detention penalties. Proper drayage training and procedures can help simplify loading and unloading processes while lowering the likelihood of per diem and other drayage charges, which can quickly add up.
It is essential to mention that local drivers and warehouse distribution facilities make it easier to move, organize, and transport containers for final-mile deliveries. They also make container drayage services easier to manage, track fees, reduce idle and dwell times, and improve overall services.
Per Diem Charges
For example, detention and per diem charges were among the most contentious issues in 2021. According to the container leasing company, Container xChange, the average detention and demurrage charge has doubled since 2020, climbing 104%. (Which equates to a more than $666 rise)
Improving warehouse efficiency and embracing current technology and solutions can assist shippers in managing container drayage and avoiding unnecessary fees, surcharges, and other expenses.
Drayage efficiency and operations at local warehouses shortened container turnaround times and kept freight moving smoothly and effectively.
The following suggestions can assist shippers in maximizing drayage transportation with the assistance of local warehouses.
Smart Technologies and Warehouse Management
Logistics managers and directors must embrace innovative warehouse practices to sustain a competitive advantage in this digital age. Proper digitalization and automation make monitoring container drayage and management easier for team managers and directors. Managing port-to-warehouse transfers and activities increases cargo shipments' access to drayage service.
New technologies, digital tools, and platforms make tracking cargo containers, driver slots, planned drop-offs, and pickups simple.
For example, real-time tracking and monitoring improve ETA prediction and planning while providing information about inbound and outgoing container movements. That is why it's crucial to work with the right warehouse assets and respond to interruptions and difficulties faster.
One of the advantages of collaborating with local warehousing and distribution hub centers is that container drayage efficiency is maximized with quick and dependable turn times. The less distance cargo has to travel, the sooner it can be readied and shipped on the final stage of its journey. This local collaboration improves turn times and productivity levels throughout the supply chain by increasing dual transactions.
The correct 3PL can facilitate these connections and provide greater supply chain insight and networking.