In the realm of freight transport, drayage plays a crucial role, especially in connecting different modes of transportation. From sea, rail to air transport, drayage ensures the seamless movement of goods within the supply chain. So, what exactly is LTD trucking and how does it relate to drayage? This article from Xe Tải Mỹ Đình experts will clarify.
What is Drayage?
Drayage is the short-haul transport of goods, typically within a metropolitan area or transportation hub. This activity involves moving containers and cargo between points such as seaports, rail yards, warehouses, and distribution centers. Drayage acts as a vital link, connecting long-haul transportation methods with the final delivery stage.
The term “drayage” originates from “dray,” referring to a cart used to haul heavy goods short distances in the past. Today, drayage utilizes trucks, particularly tractor-trailers and specialized trailers, to transport containers efficiently. In the modern transport context in Vietnam, many transport businesses operate as limited liability companies (LLC), often abbreviated as LTD. Therefore, when referring to LTD trucks, we can understand them as trucks owned and operated by LTD companies, participating in transport activities, including drayage.
Diagram illustrating the concept of drayage in logistics
Why is Drayage Important in Intermodal Transport?
Drayage is pivotal in intermodal transport, ensuring the smooth transfer of goods between different transportation modes. It not only streamlines the logistics process but also reduces transport time and supports a more efficient global supply chain. By connecting long-haul transport with local delivery, drayage ensures goods are delivered to their final destination quickly and on time.
>>> See more: How are multimodal transport and intermodal transport different?
Common Types of Drayage Services Today
Understanding the different types of drayage helps businesses choose the right service, optimizing costs and transport time. Here are some common types of drayage:
Pier Drayage: Transporting goods from a rail yard to a seaport for loading onto a ship, or vice versa. This type is common in international transport, especially important for import and export goods in Vietnam through major seaports like Cat Lai Port and Hai Phong Port.
Pier Drayage: Container being transported at a port
Intra-Carrier Drayage: Moving goods within the same transport center, such as from one bus station to another or between warehouses in the same logistics area. This type is often used to arrange and prepare goods for subsequent transport stages.
Inter-Carrier Drayage: Transferring goods between different carriers, for example, from rail to sea or vice versa. Inter-carrier drayage ensures goods continue their transport journey seamlessly, even through multiple transport units.
Overview of common types of Drayage services
Shuttle Drayage: Temporarily storing containers at container yards or bonded warehouses when transport centers are overloaded. Shuttle drayage helps resolve congestion, ensuring goods are kept safe until the next means of transport is available.
Expedited Drayage: Providing fast delivery services for urgent shipments, requiring minimized transport time. Expedited drayage often uses trucks capable of operating flexibly and quickly to meet customers’ urgent requirements.
Expedited Drayage: Fast delivery service illustration
Door-to-Door Drayage: Delivering goods directly from the port or station to the customer’s final address. This type is increasingly popular in e-commerce and last-mile delivery, especially in large urban areas in Vietnam. LTD trucking companies often provide door-to-door drayage services to meet customers’ needs for delivery to their doorstep.
Drayage Costs and Influencing Factors
Drayage costs are typically included in the overall intermodal transport costs. Factors affecting drayage costs include:
- Transport distance: The longer the distance, the higher the cost. However, drayage is essentially short-haul transport, so distance is usually not the most decisive factor.
- Type of container and goods: Containers of different sizes and weights will affect transport costs. Special goods (oversized, overweight, dangerous goods) may also incur additional costs.
- Urgency of the shipment: Expedited drayage services will have higher costs due to the requirement for fast delivery.
- Waiting time and surcharges: Waiting time at ports, stations, or warehouses, container storage fees, toll fees, and other surcharges are also included in drayage costs.
- Fuel prices: Fluctuations in fuel prices directly affect transport costs, including drayage.
Drayage may be a small part of the overall logistics process, but its role is crucial in connecting transport modes and ensuring goods are delivered efficiently. For businesses involved in supply chains and trade, especially LTD trucking companies providing transport services, understanding drayage and choosing the right type of service will greatly contribute to the success of their business operations.
