Written by

In this article

Supply Chain Glossary
Published: 

Drayage

What is Drayage?

Drayage refers to the transportation of goods over a short distance, typically within the same metropolitan area or between nearby facilities. It plays a crucial role in the logistics and supply chain industry, linking various points in the transportation network, such as ports, rail terminals, and distribution centers. Drayage often involves moving goods from a transportation hub like a port to a nearby warehouse or vice versa.

In practical terms, drayage involves the use of trucks or other vehicles to haul containers or pallets of goods over relatively short distances. It is a key component in the broader logistics chain, facilitating the movement of cargo between different modes of transportation or between storage facilities and transportation hubs.

What are Typical Drayage Costs?

Drayage costs can vary depending on several factors. Typically, they include charges for pickup and delivery, handling fees, and sometimes additional surcharges based on specific circumstances such as fuel costs or equipment requirements.

Key cost factors influencing drayage fees include:

  • Distance: The distance over which goods need to be transported affects the overall cost, with longer distances generally translating to higher charges.
  • Container Size and Weight: Larger or heavier containers require more robust equipment and may incur higher fees.
  • Special Requirements: If goods require specialized handling or equipment, such as refrigeration or oversized container handling, additional costs may apply.
  • Operational Conditions: Factors like traffic congestion, port congestion, or time-sensitive deliveries can also impact drayage costs.

In summary, drayage is a critical logistical service that bridges the gap between transportation hubs and local destinations, facilitating the smooth transfer of goods within a supply chain network.

Related terms