As shipping operations increasingly utilize intermodal transportation, container drayage has become a vital freight service, linking major transportation modes. Drayage operations connect two different freight modes — rail and sea, sea and road, or road and rail. Efficient drayage enables shippers to have smoother transitions and fewer delays, significantly enhancing the overall efficiency of freight operations.
Continental Logistics is committed to navigating the complexities of drayage to uncover opportunities for greater efficiency. In the U.S., our reach extends to shippers’ and cargo owners’ needs in 12 major ports, like the Port of Savannah. This article presents key components of the drayage service and best practices for leveraging it successfully.
Container drayage shipping involves short-range movement of containers to and from ports, warehouses, and distribution centers, usually within the same city or region. This allows for more flexibility in the supply chain operations, enabling shippers to shift between different modes of transportation quickly. However, for container drayage to work, key components must be leveraged effectively. Some of these are:
Strategic planning and coordination of container drayage help streamline downstream supply chain operations, minimize delays, and ensure timely deliveries. The container drayage service can significantly reduce transportation service time and cost with technology solutions like route optimization.
By integrating technology solutions such as GPS and the Internet of Things into the transportation process, shippers gain visibility and transparency, which goes a long way toward optimizing operations. With these solutions, stakeholders can better communicate and analyze information in real time.
Local and federal regulators increasingly emphasize compliance, from accurate documentation to sustainability initiatives. In this regard, supply chain operations could become costly for shippers if they do not follow the regulatory line. Non-compliance can lead to delays, penalties, fines, loss of trading privileges, or even jail time. However, shippers and their logistics partners can mitigate these risks if they adopt proactive compliance strategies and robust risk management practices.
Container drayage operations are plagued with challenges that are often beyond the control of shippers or drayage service providers. Some of the challenges are:
Port congestion often occurs when large volumes of containers arrive, and there are not enough workers to unload cargo from the vessels. Additionally, ports may already be full, leaving ships anchored in queues waiting to get in. Poor planning by port terminal operators to meet demand and insufficient infrastructure to handle the volume can also contribute to delays.
These delays expose shippers to increased demurrage and detention fees, escalate the cost of port services, and result in opportunity costs, as shipping companies cannot get their containers back in time to fulfill new contracts. Ultimately, these issues lead to higher prices for consumers.
That said, some ports are consciously looking to improve infrastructure to better manage high volumes and reduce congestion, like the Port of Savannah. Such initiatives showcase how proactive investments can mitigate disruptions across supply chains.
Shippers are responsible for adhering to all local, state, and federal regulations. These regulations help ensure safety standards, environmental compliance, and proper transportation permits for oversized cargo. However, these necessary regulations can often make it challenging for shippers to run optimized drayage operations, potentially leading to inefficiencies and increased operational costs.
Many times, unseen or unexpected delays can impact container drayage shipping. For instance, there may be a case of slow customs clearance or missing cargo. Natural elements like flooding or tornadoes can also forcibly ground the entire drayage process.
Although challenges impact container drayage, shippers can overcome them by using best practices, such as:
An experienced container drayage partner has the expertise and abundant resources to optimize port operations. The right partner will also ensure seamless communication among all stakeholders, as well as real-time tracking, scalability, and flexibility across their drayage operations, which can impact the downstream logistics process.
Although individual shippers have no control over this, port complexes investing in modern terminals, including establishing electronic gates, yard management systems, and others, can significantly reduce the turnaround time for getting trucks in, loaded, and out. On the part of shippers, working with drayage operators that leverage technology solutions such as telematics, real-time tracking, and EDI keeps them informed about the status and progress of the container at every step. This way, shippers can mitigate potential risks before they become a problem.
Communication keeps all stakeholders informed and aligned throughout port activities and beyond. Through effective communication and collaboration, shippers can plan, be more responsive and proactive in solving problems, and ultimately increase the operation's throughput.
Founded in 1983, Continental Logistics has a proven track record of providing custom solutions, quality service, and efficiency to give its clients a competitive advantage. We aren't just another container drayage provider. We are the gateway to streamlined shipping, taking care of your shipments from the very beginning at the port all the way to their final destination.
Here's why Continental Logistics should be your partner:
Want to find out more? Talk to an expert at Continental Logistics today.
