Get to know the vital terms of Logistics and Supply Chain Management.
In logistics, drayage is the general term describing the trucking of freight containers over short distances. Drayage is an important step in this chain that links key transportation facilities such as ports, rail yards, and warehouses together to facilitate commodities’ movement between transportation modes effectively.
The term “drayage” itself refers to the process of hauling freight containers over a very short radius, either around the same city or around the same region. It serves as an important intermodal transportation step, whereby goods are moved from ships onto trucks or rail and then further to their required places. The aim is to maintain the supply chain flowing well by connecting different points of transport speedily and efficiently, usually within a single day.
Drayage can also refer to the cost or price charged for such services. In that sense, it’s the cost involved in hauling containers from a port to a warehouse or rail terminal. Charges usually depend on the distance, weight, and type of container.
Avoiding congestion within this supply chain involves efficient drayage. This may impact on delivery schedules and have increased costs, especially where your industry depends upon just-in-time deliveries. Drayage refers to the bridge between long-haul transport modes-ocean or rail for example-and that last mile delivery to a customer.
Drayage is a very important part of modern logistics, as it ensures goods flow easily from one mode of transportation to another. Be it linking up the ports with the warehouses or consigning goods with their consuming destinations, drayage assists in effectively and timely functioning of the global supply chain.
