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What Is Drayage And Why Is It Important?

If you were to poll a group of people on what the word “Drayage” means, you might get five different definitions. How can one of the most important steps in the supply chain and a vital component of the global trade market cause so much confusion? Let’s break it down:

 

What is Drayage?

By definition, drayage is the transport of freight from an ocean port to a destination. It’s also often described as the process of transporting goods over short distances, aka “The first mile.” Now, you may be thinking, what’s the big deal? Surely the first mile can’t be that complicated.

Think of it like this: One container’s journey from ship-to-shelf (or final destination) is akin to a row of dominoes. Drayage is the first domino to fall. If the first domino doesn’t fall correctly, it affects the entire row.

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Drayage

What is drayage service?

Drayage is a specialty logistics service that carries freight over a short distance and is an important part of intermodal shipping (using multiple modes of transport). It also involves moving ocean containers for ships, rails, or trucks. In other words, drayage is the moving of cargo, often from ports, to receivers using trucks.

Transporting Using Drayage

The distance and time-frame it takes a drayage service to move a container amounts to a very short period in the overall travel journey of the shipment. When a container ship arrives in port, a large contingency of drayage service drivers quickly move in place to transport assigned cargo. Drayage also means transporting cargo to a warehouse, to another port or deliver to end destination within a specified radius. A number of companies are able to cover a diversity of services. However, others may select to develop a niche like only rail-to-rail drayage. In shipping, drayage is a necessary step to keep everything moving smoothly toward delivery. However, as will other aspects of shipping, things occur that could cause drayage delays by a few hours or even days. Most services have the ability to shift resources to make up the time because of the short distances. Drayage is an essential step in the supply chain. The only way your freight can make it from the port or intermodal terminal to the next mode of transport is via drayage.

What is Intermodal Shipping?

Intermodal shipping is a way of moving cargo or freight that involves multiple methods of shipping. Intermodal shipments might travels on a combination of truck, ship, rail or airplane. In most cases, intermodal shipments use special containers so that goods can be transferred between modes of transport without having to be unpacked. According to the Intermodal Association of North America (IANA), up to 95 percent of all globally manufactured goods travel in a container at some point. This means intermodal shipping applies to many different kinds of cargo. Drayage services connect these containers of freight from one intermodal point to another. For example, drayage service might include transporting a container from a receiving dock at an ocean port to a trucking terminal for transport to its final destination.

Drayage Classifications

Drayage service isn’t a one-size-fits-all method. You’ll find a number of classifications of drayage services. The following classifications come from the IANA:

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