Introduction: Why Drayage Matters
Drayage refers to short-distance container haulage, i.e., moving loaded and/or empty containers between the port or terminal to a warehouse or container yard via a truck. Even though the logistics focus on the so-called “first mile / last mile”, many companies undervalue it because they think it’s a small step.
In fact, drayage is the key to efficiency for the entire supply chain. When drayage slows down, containers idle at port, businesses pay expensive demurrage and detention fees, and delivery schedules fall apart. That’s why knowing how drayage works is the basis of smarter logistics and preventing bottlenecks.
Find out more about how drayage operates in our What Is Drayage guide.
What Is Drayage? Meaning and History
At its simplest, drayage is moving containers over short distances, typically from a port terminal to a warehouse or rail yard.
The term “drayage” goes back to the days when horses pulled dray carts, in the same way today’s drivers operate their trucks to move cargo. The description stuck because the principle — short-haul movements — had stayed the same.
Today, drayage is about specialized trucks and drivers that link the largest global carriers with local destinations, such as ports or railyards.
The Important Role of Drayage in Logistics
Drayage acts as the key player in intermodal freight. It connects ocean vessels, railroads, and trucking, making it possible for goods to move seamlessly across various modes of transportation.
Without it, containers would simply sit after being unloaded from ships. Drayage keeps the supply chain smoothly flowing by moving containers out to rail yards or warehouses.
In simple terms:
- Drayage = container trucking “short distance”
- Intermodal = the (ship + rail + truck) system
This small task is what enables supply chains to work globally.
Types of Drayage
Drayage isn’t one-size-fits-all. There are several types, depending on where you need your load to go:
- Pier Drayage: Transports a container between rail yards and ports.
- Inter-Carrier Drayage: Moves containers between carriers (e.g., from rail to trucking).
- Intra-Carrier Drayage: Moves containers from one point to another point within the same carrier (e.g., rail yard to rail yard).
- Shuttle Drayage: Stores containers at off-dock storage yards when ports get too clogged.
- Door-to-Door Drayage: Moves containers to the customer’s location.
And each one of these drayage types keeps cargo in motion, despite backlogs or capacity constraints at ports, rail yards, or warehouses.
Drayage Costs and Fees
So what does a container’s drayage cost? Prices vary, but we can list below what it always includes:
Main cost drivers:
- How far the haul is (time, power, labor, even for short distances).
- Chassis rental and use of equipment.
- Port or rail congestion and dwell times.
- Fuel surcharges.
Extra fees:
- Drop Fee: Leaving a container at your facility and picking it up later.
- Stop-Off: More than one stop before final destination.
- Layover Charge: Overnight wait as a result of delays.
Penalties:
- Demurrage: A charge when containers sit too long at the port before pickup.
- Detention: A charge when containers stay over the allowable free time after pick up.
Knowing these costs is essential to planning for shipping and avoiding additional charges.
Why Drayage is so Important In Your Supply Chain
It’s true that drayage can handle short distances sometimes, but the stakes can’t be higher:
- Speed: Helps keep containers flowing fast through congested ports.
- Flexible: Offers storage and diversion when yards get full.
- Cost Management: Prevents companies from being slammed with costly fines and penalties.
- Risk Decrease: Avoids waste or theft of cargo.
- Efficiency: because businesses and e-commerce supply chains depend on it.
Conclusion and Next Steps
Drayage might seem like the smallest step in the shipping process, yet it is a huge player in the world of logistics. By linking carriers, minimizing wait times, and containing costs, drayage is critical to keeping supply chains moving smoothly from port to customer.
With WTL, you benefit from over 20 years of experience in intermodal logistics and drayage in and around the Port of Baltimore. Whether you need pier drayage, shuttle moves, or door-to-door delivery across the region, our team has the expertise and the fully-owned fleet to tailor the right solution for your business.
Reach Out to WTL Today to Go Over Your Drayage Requirements.