Transporting cargo to ports, warehouses, storage centers, transportation facilities, and final customers generally falls under the umbrella of drayage transportation. With its prevalence and vital role in the market, the challenges of drayage cannot be overlooked or ignored. As highlighted by PR Newswire, “The global drayage services market is set to grow by USD 2.90 billion during 2021-2025, according to the latest market research report by Technavio. The market is expected to witness a 1.49% YOY growth in 2021 and register a CAGR of 2% during the forecast period.” With such a powerful and direct impact on the supply chain and with such potential for future growth with e-commerce importers and shippers, the everyday challenges of drayage must be addressed in a practical and adaptable manner.
Challenge 1: Capacity Challenges Involving Customs Clearance
One of the biggest challenges of drayage transportation comes from dealing with customs and international shipping fees and expenses. Many things require careful consideration for shipping freight, from taxes to handling fees to port and inspection fees. Clearing customs can become a very drawn-out and complicated process, so anything that can reduce the frequency of delays and issues can improve overall drayage services significantly.
Solution 1: A Centralized, Expert Resource for Managing Customs
Any shippers dealing with customs navigation or border crossings regularly should streamline the processes involved to make managing customs much simpler and more manageable. The fastest and easiest way to do this is by implementing a centralized, collaborative warehouse management platform. Combined with expert insight and assistance, this critical aspect of transportation and drayage services becomes much more accessible.
Challenge 2: Inability to Account for Delays on the Dock
Delays, bottlenecks, and scheduling issues are another big challenge of drayage services among transportation service managers and logistics directors today. Delays happen and should be expected and planned for. However, when this does not occur, these delays at the docks can create a ripple effect of delays, disruptions, and problems that can impact every other part of the supply chain network.
Solution 2: Tracking Freight Arrival and Expectations for Unloading and Drayage
The single best way to overcome scheduling issues and delays involves careful monitoring and tracking of all freight loads and containers. Real-time tracking and monitoring allow for more precise ETA predictions and customer updates. Monitoring and tracking shipments from start to finish allows for up-to-date status reporting and reliable updates regarding shipping times, locations, and arrivals.
Challenge 3: Long-Haul Drays That Increase Risk for Per Diem Charges
A per diem charge refers to an ocean carrier’s fee for each day shipping items and products sitting at the port remain past the number of “free” days allowed for each shipment. Longer drayage shipments mean containers remain at the port for a more extended period while they are emptied. This means surcharges and fees are more likely as even a tiny delay can impact loading and unloading times.
Solution 3: Drayage With Local Warehousing for Temporary Storage to Lessen Turn Time
Overcoming this particular challenge of drayage transportation and shipping finds the best resolution in better warehouse management and distribution hub utilization. Maximizing access and usage of closer warehousing and storage facilities improves overall productivity and transportation rates—fewer miles driven means faster loading and unloading of all freight along a route and distribution for all drayage shipments.
Challenge 4: Limited Truckers in an Area
Anyone in the shipping and transportation industry knows the driver shortage continues to impact the entire network. Fewer drivers mean a reduction in capacity access, and it also means that available drivers are stretched to the limit in terms of hours they can work. More drivers are leaving the market than are coming in. This imbalance can significantly affect drayage services, especially in areas where the driver shortage is more profound than in other areas.
Solution 4: High-Quality Servicers With Ample Drivers
Finding drivers and ensuring capacity levels stay high and that shipments do not sit idle and untouched at local ports remains a critical issue for shippers. Overcoming these drayage challenges is possible, however, with the right partnership and access to data, technology, and innovation that other providers do not offer. Access to diverse freight carrier networks can make a world of difference.
Overcome the Challenges of Drayage by Partnering With Port City Logistics
Creating lines of revenues that reached tens of billions of dollars in value last year, drayage services are undoubtedly one of the most vital shipping services provided by the modern supply chain network. This essential service covers the process of transporting freight in shipping containers over short distances to temporary storage destinations or distribution hubs. Contact Port City Logistics today to learn more.