Logistics managers are constantly looking for ways to help improve their drayage shipping operations. Maintaining a healthy supply chain year-round starts with implementing a strategy that can help shippers reduce their overall transportation costs for drayage shipping and help improve operational efficiency.
Companies that put their focus upfront on making drayage an integral part of their supply chain can reduce soft cost and accessorial fees and improve their overall supply chain efficiencies.
What is Drayage Shipping?
Drayage is all about transporting commodities, usually over short distances. Drayage usually refers to containerized ocean freight that picks up from a port; however, port drayage service can also refer to the movement of intermodal goods coming from a rail yard. A typical example of a drayage load would involve a drayage service provider arriving at a port. The container is then loaded onto the truck and hauled to its next location. Some drayage providers offer a range of services that include transloading, specialized transport, project management, and port-to-door service. Port X Logistics offers longer haul drayage in order to meet the demands of manufacturers and retailers looking for expedited transport right to their customer’s door.
What is the Status of the Drayage Market?
According to a recent FreightWaves article, the spot-rate costs for containerized freight have continued to fall with no signs that the market will bottom out. The downward trend affects the otherwise crowded logistics industry. The declining spot rates are lower than contracted rate pricing, pushing the ocean lines to reduce costs. This is all occurring at a time when contract agreements are ending, which places additional pressure on companies to find ways to reduce their costs. Declining ocean rates has not necessarily caused drayage rates to plummet as well. In fact, drayage rates are actually on the rise in places like California due to government environmental policies and regulations that adversely affect the trucking industry, such as AB5.
How Can Shippers Lower Their Freight Costs?
The lingering effects of COVID continue to put pressures on how logistics managers operate their supply chains, and has put into focus ways that shippers can reduce their overall transportation costs. Port X Logistics takes a proactive approach in helping shippers save on freight costs by reducing unnecessary accessorial fees on all shipments. Its technology provides a roadmap linking drivers, equipment, warehouse space, and yard space, ensuring that each shipment is tracked and coordinated efficiently to reduce wait time and accessorial fees. Each container is tracked on your behalf throughout the entire lifecycle of the shipment, from the origin port to the end destination.
How to Choose the Right Drayage Provider for your Business
The following section will list the different factors that shippers should consider when looking for a drayage service provider.
Research Drayage Companies that can Service your Port or Railyard
Drayage companies in size, scale of operations, and the range of availability to service specific geographic locations. With so many ports and rail yards located in North America, it’s important to work with a logistics provider that offers expedited service in both the United States and Canada. Being able to service all major ports is an indicator that your drayage provider has industry experience, drivers, and an extensive carrier network, and understands the rules and regulations at each port.
Look for a Drayage Provider that Ensures Just-In-Time Delivery
Nothing is more important than your customer satisfaction. Making sure your containerized freight is picked up on time and delivered when it is supposed to be is what separates quality drayage providers from the rest. Look for a drayage company that offers a range of value-added services, such as transloading and end-to-end visibility throughout the entire journey of your cargo. By reducing the amount of time spent getting location updates, your company can shift energies into expanding beyond your current customer base. Ask your provider for KPIs that show their on-time deliveries.
Find a Company with Guaranteed Capacity
When looking for a drayage partner, look for a company that provides truckload service throughout Canada and the United States. A vast carrier network is critically important to offset logistics seasonalities and can be crucial when looking for a recovery option in the event your asset-based carrier runs out of options. Companies like Port X Logistics offer guaranteed capacity for truckloads when moving your cargo.
Partner with a drayage provider that offers customers real-time tracking, not just when the cargo arrives, but visibility on the water, through the port, and while the load is on the road to the final delivery.
Optimize your Supply Chain with Port X Logistics
Each day, thousands of companies rely on the full range of drayage services that Port X Logistics provides. Port X Logistics helps global shippers get control over their supply chains, offering port-to-door service for companies shipping in the United States and Canada. The technologies Port X Logistics offers customers help shippers gain real-time visibility on their containerized freight, reducing the time spent communicating in emails and phone calls to make shipping easy. With access to its own assets and an extensive carrier network that services all major ports in North America, Port X Logistics helps manage your supply chain so you don’t have to. Make sure to reach out to Port X Logistics today!
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