How a TMS Boosts Drayage Service Efficiency

How a TMS Boosts Drayage Service Efficiency

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

When managing drayage, service costs rapidly rise due to contributing issues, including per-diem charges, flip charges, and storage fees that result from not having the software or proper management tools in place. Managing drayage is also complicated by the changing schedules and requirements of ocean carriers. Avoiding these risks is impossible, and failure to handle them will only make things worse as the demand for drayage services continues to rise.

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at an alarming speed, highway congestion, railway delays, chassis shortages, poor connectivity, and complicated, outdated software add to the transportation issues when dealing with drayage service.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.

Calculate your potential Saving While Using an enterprise TMS

Increase Drayage Service Efficiency WIth the Right TMS Solution

The demand for drayage services shows no signs of slowing down despite issues with poor visibility, tight capacity, and rising costs. As the industry continues to grow and expand, the importance of digital freight matching through a TMS like MercuryGate grows as well. And by leveraging such resources, shippers will more easily be able to boost drayage service efficiency, reduce confusion regarding container status, and plan for the inevitable deconsolidation and consolidation of freight before and after drayage.
A dedicated TMS has the capability and tools to offer intelligent solutions to rising issues in capacity struggles, lack of visibility, and lower drayage service costs. To improve your drayage management and reduce demurrage or added drayage costs, contact MercuryGate for the best solution.

Improve your drayage management and reduce demurrage or added drayage costs

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