In April 2023, we wrote about some of the common problems shippers faced heading into Q2 of this year. It highlighted how despite a 7% increase in container imports in March, shippers were still left with a significant volume of products in their warehouses due to slumping consumer spending amid rising U.S. economic inflation. With bloated inventories and continued uncertainty over the state of labor relations between the shipping lines and unionized U.S. West Coast dock workers, import volumes to the West Coast have seen a steep drop. East Coast volumes have also slumped. However, the enormous investment and strategic improvements pumped into East Coast ports to strengthen supply chains and modernize port terminals show the strategic nature that East Coast ports like Savannah, Ga., will play in the future. 

Supply chains across the globe are under pressure as more and more ports become congested, loading times continue to rise, delays occur, and both demurrage and detention fees increase. These issues can be paralyzing or crippling to your business, and finding the right port or container drayage trucking service provider to partner with is crucial.

In a globalized world, countries have become reliant on international supply chains to bring people food, commodities, and other consumer goods. Over 80% of global shipping arrives via containers, which makes drayage service one of the most important modes of transportation in logistics.   

As many industries and people shed off the strategies and relationships required through the pandemic, drayage logistics management continues to be defined as “It’s Complicated.” Atypical weather patterns, pandemic shockwaves, and stuck cargo vessels have changed what is required when planning drayage services. As a result, dray teams need to be resilient, efficient and have supply chain visibility because they never know when the next wave of issues will hit. Yet, 2022 shipping has continued to be marked by an overwhelmed market with inadequate carrier capacity to move containers to and from ports.

Drayage services remain one of the most critical yet overlooked aspects of shipping and transportation today. These services deal with the short-haul transport of goods from container ships to rail yards, warehouses, or storage lots. New port drayage tech and drayage services help ensure final-mile deliveries go according to plan while also connecting various modes of long-haul transport for a smooth and seamless delivery process from crating and shipping services at warehouses through delivery to retailers and beyond. According to eMarketer, “Total US retail sales will increase 2.5% year over year (YoY) in 2022 to $6.624 trillion. Ecommerce sales will grow 16.1%, while growth for in-store sales—which will account for more than 80% of total retail sales—will be close to flat.” As demand grows, drayage fulfillment strategies continue to offer reliable shipping options for all manner of e-commerce driven sales.

As recovery continues in the wake of the Covid pandemic, supply chain disruptions, rolled cargo concerns, and other issues still plague shippers and carriers alike. With countless ships stuck at port, cargo ships stuck at sea, and containers sitting at ports unable to be emptied, the bottleneck and pressure on shippers continues to increase.

Knowing what shipping drayage means and its impact on the supply chain is key to maintaining a competitive advantage. Shippers across multiple industries and niche markets are dealing with the still record highs for container prices and freight rates. While this is a dilemma in and of itself, it is an even more significant issue considering current drayage supply chain capacity planning protocols.

For the supply chain industry, drayage services bridge a gap needed for the transportation of goods. Drayage truck and other forms of intermodal shipping require more knowledge of the supply chain and its day-to-day operations. Drayage depends on concise, timely communication to be successful, in addition to the right technology to accommodate changes for functions that need more flexibility. The proper use of drayage services provides potentially profitable changes to any business.