Drayage service transports freight from an ocean port to an initial inland destination in a specific context. Such shipments usually travel no more than 50 miles. For example, drayage services could be used to transport containers from a railyard to a warehouse. At the warehouse, the containers will be sorted, segmented, and routed to the final destination. There is plenty of risk for errors and missteps without the proper visibility and technology to avoid delays, a lack of communication, and the rising charges in this process. If there are critical visibility gaps, this process will have blind spots and increase the risk of delays and increased costs.
Poor visibility in drayage can slow the entire process and result in lost customers and perhaps cargo loss, especially if cargo is time-sensitive or perishable. A trusted TMS can assist in closing such gaps and improve drayage service management through better efficiency with world-class transportation management technology.
Why Is Drayage Harder to Manage & What Are the Challenges of Drayage
Taking a closer look at the projected growth of the market, PRNewswire states, “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.” In addition to costs growing at an alarming speed, highway congestion, railway delays, chassis shortages, poor connectivity, and complicated, outdated software add to the transportation issues when dealing with drayage service. Choosing a world-class TMS that connects to more drayage providers, such as a digital freight brokerage, can solve these issues and provide continuous growth by unifying drayage with all other transportation needs in one overarching system of record.
How a TMS Gives You Centralized Drayage Service Management
The main concerns that surround managing drayage service are shipment visibility, delays due to reshuffling, and limited carrier capacity. Without proper management and efficiency, the problems will never be resolved, resulting in higher costs and no insight into drayage logistics. These issues can be minimized with the help of a TMS that provides visibility features, such as analytics-based insights and automated exception notifications. Therefore, an automated TMS can provide secure capacity to avoid potential disruptions and offer intelligent solutions to drayage service management like:
- Real-time tracking of container location.
- Visibility to reduce confusion and optimize capacity.
- Maximize the use of chassis and containers.
Provide real-time rerouting capabilities throughout the entire fleet.
- Optimization capabilities to minimize added charges like per diem rates.