> Drayage Logistics

Drayage Logistics: Transport Efficiently Over Short Distances

By Walter Rodriguez, PhD, PE, L+

Drayage logistics refers to moving goods over a short distance, usually from a port or railway terminal to a warehouse or distribution center. The term originated from horse-drawn carts, commonly called "drays." Your company can hire a drayage service to transport the shipping containers from the port to the distribution center. The figure shows a sample NTG Freight drayage delivery operation.

Dana’s Drayage Story: As a logistics manager for a retail company, Dana regularly coordinated drayage services to transport shipping containers from the port to distribution centers, allowing them to efficiently move goods over short distances and optimize their supply chain operations.

Dana researched and established relationships with reputable drayage service providers in their port's area to ensure a smooth and reliable drayage process. And they evaluated factors such as their experience, equipment availability, service quality, and rates to select the most suitable partners for our specific requirements.

Coordinating Container Pickup: Dana communicated the details to the selected drayage service provider once the cargo arrived at the port via ocean vessels. This included container numbers, shipping information, and any specific instructions regarding the delivery. The drayage service provider would dispatch drivers to the port to pick up the containers.

Transporting Containers to Distribution Centers: The drayage service provider used specialized trucks and equipment to transport the containers from the port to the designated distribution centers. They would coordinate with the port authorities to ensure timely access and adhere to specific regulations or requirements.

Managing Documentation and Compliance: Dana closely monitored the process as the containers were transported to ensure compliance with all relevant regulations and documentation requirements. This included verifying that the drayage service provider had the necessary permits and licenses and that all customs and port-related paperwork was in order.

Communication and Tracking: Throughout the drayage process, Dana maintained regular contact with the service provider to stay updated on the container's status and estimated arrival time. This enabled practical planning of subsequent steps in their supply chain, such as warehouse operations and distribution scheduling.

Efficient Handoff to Warehouse Operations: Dana worked closely with the warehouse team to ensure a seamless handoff once the containers arrived at our distribution centers. This involved coordinating the unloading of the containers, verifying the contents against shipping documentation, and initiating inventory management processes.

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Drayage is a crucial component of the overall supply chain and plays a significant role in facilitating the movement of goods between different modes of transportation.

As mentioned earlier, the term "drayage" historically referred to using horse-drawn wagons for transporting goods, but in modern logistics, it typically involves using trucks or other motorized vehicles. Drayage logistics often focuses on containerized cargo, particularly in international trade, where containers must be transported between ports and nearby destinations.

Drayage logistics services may include picking up or delivering containers from ports, rail terminals, or other intermodal facilities, transporting them to nearby warehouses or distribution centers, and managing the associated paperwork and documentation. Drayage providers work closely with shipping lines, freight forwarders, and other stakeholders in the supply chain to ensure efficient and timely movement of goods.

Challenges: In recent years, drayage logistics has faced challenges and opportunities due to increasing trade volumes, congestion at ports and intermodal facilities, environmental concerns, and the need for optimization and visibility within the supply chain. As a result, technology solutions and innovative approaches are being adopted to streamline operations, improve efficiency, and reduce the environmental impact of drayage logistics.

To learn more, check Coursewell.com and https://lnkd.in/en3z4_Hf. Or, check the Logistics+ book (softcover, 670 pp.) at https://a.co/d/5IE95ls.

References

Hensher, D. A., Mulley, C., & Ho, C. (2017). The determinants of drayage trucking demand. Transportation Research Part E: Logistics and Transportation Review, 105, 82-98.

Malchow, M., Hanisch, F., & Bock, S. (2019). Drayage truck scheduling at a seaport container terminal. Transportation Research Procedia, 41, 463-470.

Rodriguez, W. (2023). Logistics+: Mastering Logistics from Analytics & Technologies. Plus, E-Commerce. AI. Transportation, Risk, Procurement. Distribution. Inventory, Warehousing. Lean Supply Chain. Sourcing. Agile Manufacturing. Supply Chain Logistics. Logistics Careers. Washington: KDP. ISBN: 9798394837784.

Taniguchi, E., Yamada, T., & Thompson, R. G. (Eds.). (2017). City logistics: Mapping the future. CRC Press.

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