What is Drayage? A Comprehensive Guide to First Mile Freight

Drayage is a critical element of modern shipping and logistics. Whether you're managing international imports or domestic distribution, understanding drayage and its applications can improve the efficiency of your supply chain. 

Key Takeaways

• Drayage refers to the transport of containerized goods over short distances, often between ports, rail terminals, and warehouses.
• It’s a vital link in the supply chain, bridging the gap between long-haul transportation modes like cargo vessels, freight trains, and semi trucks.
• Some commonly used types of drayage include pier and door-to-door services, each suited to specific logistical needs.

In this article, we’ll discuss the fundamentals of drayage shipping and its importance for shippers and carriers.

Drayage Defined: The First Step of Inland Shipping

Drayage services are used to move containerized goods over short distances, typically by a specialized truck. One of its common purposes is moving a shipping container from a port to a rail terminal or warehouse.

 In the image below, you can see a basic example of how this process works at a port.

Since drayage usually takes place once a containerized shipment reaches its port destination, it is sometimes referred to as first-mile shipping. This contrasts with final mile shipping, which is the last leg of a product’s journey to its end user.

This service is an important part of intermodal shipping, where different types of transportation (truck, rail, air, and/or vessel) play roles in a given shipment.

Related: Drayage vs Cartage: A Complete Overview

Drayage Equipment

While over-the-road freight shipping uses semi trucks, trailers, and trains to move goods across long distances, drayage requires specialized equipment to handle container transportation.

Some of the equipment used includes:

• Chassis trucks (also called drayage trucks)
• Shipping containers
• Mobile cranes for loading and unloading said containers

The specific equipment used can vary based on the type of drayage service. For instance, some chassis trucks are equipped with extra fuel tanks to power refrigerated containers for refrigerated goods.

Types of Drayage

Drayage services vary based on specific needs. The Intermodal Association of North America (IANA) defines six classifications:

• Door-to-Door: This process moves containers directly from the terminal to the customer’s location. It’s often used for retail deliveries.
• Expedited:Expedited drayage is used to handle time-sensitive shipments that rely on rapid transport.
• Shuttle: A carrier transfers containers to off-site storage facilities when terminal space is limited. It can also be used to move containers prior to an emergency, such as a hurricane or wildfire.
• Inter-Carrier/Cross-Town: Moves containers between different carriers or transport modes, such as from one rail terminal to another.
• Intra-Carrier/IMX: Moves containers between different carriers or transport modes, such as from one rail terminal to another. 
• Pier: Focuses on moving containers between a port and a nearby warehouse selected by the shipper. This is commonly used for commercial imported shipments to avoid demurrage fees.

Now that you have an understanding of drayage basics, let’s take a look at how this short-haul shipping practice benefits businesses in the US.

Benefits and Importance of Drayage in the Supply Chain

Drayage is essential to a cost-efficient and fluid supply chain. Its importance can be distilled into three basic benefits, which are:

• Reduced Port Congestion: Docks use drayage to make room for new shipments, hastening overall shipping time.
• Less Container Idle Time: Containers are shipped out, unloaded, and returned quickly for new shipments.
• Prevents Delays in Shipping: Freight is moved between transportation modes with little to no wasted time or movement.

While the final mile is often considered the most important part of the shipping process due to its customer-facing nature, drayage in the first mile is just as important for timely deliveries.

Determining Drayage Costs

The price of drayage depends on several factors, including:

• The weight of the shipment, measured in hundredweights (CWTs)
• Distance between origin and destination
• Specialized equipment or handling requirements
• Contents of the container (fragile items tend to fetch higher rates)

Like any other form of shipping, drayage rates can also fluctuate almost daily based on fuel prices and driver availability.  Our article on how to calculate drayage rates goes into more detail about this subject.

Drayage Services From USA Truckload Shipping

No matter what type of drayage your shipment requires, partnering with experienced logistics professionals will give you peace of mind and let you focus on business growth and customer satisfaction. That’s where we come in.

USA Truckload Shipping offers tailored drayage solutions to meet your business’s logistics needs. We also offer a full suite of freight movement services, including:

• Freight and logistics consultations
• Hazmat transportation
• White-glove delivery
• And more

Ready to streamline your supply chain with expert drayage services? Call USA Truckload Shipping today at (866) 353-7178 or visit our website for a hassle-free quote. We’re standing by to help you move your shipments safely and punctually.