Drayage typically involves moving containers over short distances, often between facilities and within a single metro area. In addition to providing the required transfer of shipments, local drayage and inter-plant shuttles also act as a strategy to enhance inventory management with the just-in-time delivery of goods or raw materials.
Demand for domestic intermodal shipping, including local drayage services and short-haul trucking, is expected to continue growing with the economy, and in coming years, with the expected growth in the U.S.-based manufacturing sector due to changes in tariffs. Similarly, growth within the Midwest drayage market is expected to continue due to the region’s proximity to much of the nation’s population.
Much like the entire logistics sector, the U.S. drayage market is on the cusp of transformation, driven by multi-faceted trends such as growth in the manufacturing sector, the continued expansion of e-commerce, technological adoption and the focus on sustainability to reduce carbon footprints.
When it comes to local drayage, here are a few ways to optimize drayage operations:
Select the right drayage provider
Choosing a reputable 3PL that offers local trucking, drayage and storage can supplement a company’s own local fleet, adding greater efficiencies which may include savings on storage and handling and container rental cost savings. The right drayage provider helps shippers avoid excessive dwell times and extra charges such as demurrage or storage fees from the ocean freight provider or rail yard.
Whether or not your company has its own fleet, working with an asset-based 3PL provides companies with the flexibility they need to ensure their shipments reach the intended destination on time.
Selecting a single-source 3PL provider for warehousing and transportation services that offers local intermodal transportation and drayage capabilities creates a more efficient supply chain.
The benefits of using a single-source 3PL for drayage include improved visibility, simplified communication, better capacity management, enhanced customer service and potential cost savings from the consolidation of services.
Plan ahead and for peak
As part of their demand forecasting, shippers can analyze their historical sales data and market trends to predict peak periods and adjust their delivery schedules accordingly. And it nearly goes without saying that shippers should share relevant information with their 3PL to ensure they understand their needs and have the necessary resources to accommodate them.
Shippers should also plan ahead with their 3PL, especially for peak periods, to ensure local trucking services like drayage and inter-plant shuttles are there when they need them. The 3PL, in turn, can better perform their own capacity planning to handle peak demand, whether securing access to additional trucks, drivers or equipment.
When possible, keep transportation plans flexible to adapt to changing demand patterns such as weather events, traffic congestion, strikes or other supply chain disruptions. This means contingency planning with your 3PL address potential disruptions.
Leverage technology
More than ever, real-time visibility of shipments and assets via tracking and monitoring solutions assists both shippers and their logistics providers to optimize transportation operations, including drayage services. A number of tools and applications can help shippers stay informed of disruptions or delays and more proactively manage such events. Traditional applications such as transportation management systems (TMS) and newer technologies like route optimization software are great tools to leverage.
Plus, 3PL portals often offer features to their shipper customers such as shipment tracking, order management and quoting, all useful tools to improve supply chain efficiencies and control costs. Many of these proprietary portals have evolved over the years with advanced features such as real-time visibility via GPS tracking to render live updates on shipment status, location and estimated delivery times. Seamless integration with the shipper’s ERP and TMS systems brings streamlined data exchange.
Work with a trusted 3PL
Worley Warehousing is a 3PL offering warehousing, local drayage and inter-plant shuttles, among other transportation options — serving the state of Iowa and Midwest region. We move a number of types of freight including non-perishable dry cargo, food ingredients and chilled products.
Via our own TL fleet, Worley services include moving containers and transferring them promptly to another location such as a manufacturer’s plant, intermodal facility or distribution center. In addition, we also offer pool distribution services for further savings.
With all the benefits of customized services from a logistics provider, Worley is your single-source solution for Midwest warehousing and transportation services.