Tag: logistics

Understanding the drayage process and its origin can help you make the most of this logistics service. Drayage is a logistics term that involves shipping goods a short distance via ground freight. Drayage can help fill the gaps in intermodal shipping. The term drayage refers to a niche shipping service needed to move large containers for a truck, ship or rail. In shipping, drayage is a critical step in moving freight.

Drayage carriers must have the necessary bonding and licensing. Drayage companies take containers in and out of warehouses, rail terminals, ocean ports and harbours. This often involves taking huge steel shipping containers off rail cars and ship decks and then loading them on to truck trailers. From there, the container is hailed to a warehouse or storage facility to get ready for the next step in the intermodal shipping process. Drayage is part of a longer logistics process.

In drayage services, the containers carried usually stay in the same metropolitan area or close region. This is different than broader regional or national shipping. Drayage transport can often be completed in one driver shift.

Transporting Using Drayage

The distance and timeframe it takes a drayage service to move a container amounts to a very short period in the overall travel journey of the shipment. When a container ship arrives in port, a large contingency of drayage service drivers quickly moves in place to transport assigned cargo.

Drayage is an essential step in the supply chain. The only way your freight can make it from the port or intermodal terminal to the next mode of transport is via drayage.

How is Drayage Connected to Intermodal Shipping?

Drayage services connect these containers of freight from one intermodal point to another. For example, drayage service might include transporting a container from a receiving dock at an ocean port to a trucking terminal for transport to its end destination.

Why Drayage Service is Needed

In addition to ports with intermodal containers, retail venues along with trade show sites also use drayage service. Like moving cargo at a port, a lot occurs behind the scenes at shopping malls and trade shows.

Take shopping malls for instance. Getting freight in and out of stores, especially those without external loading areas, takes coordinating with a drayage service to get a shipment from the delivery truck to the storefront. Typically, a common delivery hub is available at retail malls. However, this short distance is critical for the store to cover on a regular basis.

The busy world of trade shows also depends on drayage service to move exhibitors in and out of the site in an efficient manner. Once materials for each exhibitor arrives at the location, it is a frenzy of activity to get everything ready. Exhibitors may send a team to construct displays a few days in advance.

Carriers contracted by the exhibitor delivers the shipment to the convention center, or venue for the trade show. Next, the drayage service takes over to move the freight the short distance from the loading dock to the exhibitor’s space on the tradeshow floor. While drayage covers a relative short distance, everything is typically is happening at a steady pace. Crews are on hand to get seasonal merchandise stores or transfer exhibit booths and equipment to the right spot.

The Final Word

What is drayage? Hopefully, this article has given you some insight into answering that question. If you’re looking for a reliable partner in logistics and drayage, why not consider Triton Logistics Inc? With years of experience under their belts, the team can handle any logistics queries you may have with the greatest of ease.

It is essential to know how to calculate your shipping costs. Delivery fees have an impact on various aspects of an online transaction. Understanding how shipping costs are calculated can be beneficial in multiple ways. This will help you track how much you’re spending regarding your total cost, help keep your postage costs low, and have a notion about how likely customers would purchase from you if you’re into e-commerce. Here are some points to consider when calculating your shipping costs.

1) The Type of Packaging Used

The type of packaging used for a parcel is one of the numerous factors that help figure out the delivery cost. This consists of the internal packaging, the type of cardboard used, the adhesive tape, labels, ribbons, and any other elements used to pack the parcel. Nonetheless, the quality of packaging should not be neglected to avoid breakage or any other issues, especially if you have a business dealing with several customers. It is advisable to invest in high-quality packaging than to reimburse clients due to mishandled products. Choose the right materials like bubble wrap, special containers, papers, etc, to ensure that everything is secured.


2) The Dimensions and Weight of the Package

A tariff barrier is designated to make imports more costly that the domestically produced product. In other words, it is a tax imposed on products for imports to protect local companies and industries. Tariff barriers are applied based on the dimensions, density, and weight of a package. This is done since these factors affect packages’ treatment, including conveyor belts, tanks, handling, the size and type of packaging to be used, and others. Consequently, these factors help determine how much it will cost to ship the parcel.


3) Transport Cost

There are two types of shipping, standard or express shipping. Standard shipping is cheaper since it does not include any special provisions and does not require overnight shipping to deliver products quickly. On the other hand, express shipping is speed-up shipping. Parcels are delivered faster than those in the standard shipping. They usually arrive overnight or the next day and are a bit pricier. This is why the method of shipping chosen also impacts the cost of deliveries.


4) Parcel Insurance

Customers expect more than just a fast delivery in the right location. They also want to be covered in case of damage, loss, or theft of products. This is why many people, especially regular shoppers, opt for shipping insurance, a service that reimburses clients in case of lost, damaged, or stolen parcels. If you need that extra protection, you should pay for it. Thus, the insurance cost will also be applied to your shipping cost. It should also be noted that each insurance company has its distinct methods, which is also a factor to consider while calculating your expenses.


5) Preparation Time

This is particularly important if you operate an e-commerce business. Whether you’re responsible for the packaging of parcels to customers or workers are hired for the task, the time taken to prepare and package products should not be disregarded. This has an impact on the speed of delivery, especially during rush times like Christmas. It forms part of the cost within your business and represents the hard labor of staff as well.



If you need help regarding your shipping services, Triton Logistics provides various solutions to get your products, packages, and materials safely, wherever you are around the globe. Their passionate team are always happy to help and will help you choose the right shipping mode. Contact them for more information.

Logistics is the process of delivering goods or services from one place to another and also unloading and unpacking of cargo. Logistics management forms part of the supply chain management.

Logistics cost is a combination of:

  • Coordination
  • Packaging
  • Loading & unloading
  • Transportation
  • Security (insurance, locks, seals, security guards)
  • Taxation
  • Delivery coordination

If you own a logistic company, a closer look and analysis of certain aspects of your business can help you reduce expenses.

Freight

A first rule is checking and investigating invoices for freight. There are always hidden details that can make a difference to the bottom line of a small business.

Managing Logistics Costs

Companies need to manage their logistics with a balance between cost and performance since the lowest-cost transportation path is not necessarily the fastest. Logistics costs relate to the charges for various transportation methods, including train travel, trucks, air travel, and ocean transport. Additional logistics costs include fuel, warehousing space, packaging, security, materials handling, tariffs, and duties.

Inventory controls

Making sure you know what you have on stock and where it goes. It sounds banal, but many businesses are not aware of how many things go missing from one hand and how much junk is taking storage space. Tiny businesses often believe that one can manage without stock control, but then anyone can move, take, or add things to stock without your knowledge and record. This can be a serious leak of funds. Large businesses, on the other hand, can lose sight of the warehouses and end up storing old equipment and marketing materials. This takes space, and when there is an increase in business activity, and you need to stock more, no space is left. It causes immediate and long term issues like damaged stock or the decision to move to a bigger facility.

Know the costs

Knowing the full cost of the product supply chain. It is more complex, but companies often calculate the production cost and the materials costs but do not include the supply chain complexity and expenses it can add. For example, overseas purchasing, import/export regulation, delivery to the customer all can make a huge difference to the bottom line, especially if they go wrong.

Automation

Automated processes lower manpower needs, which helps reduce costs. Lower reliance on manpower also reduces the probability of errors, which again helps keep a check on the costs.

Today’s logistics companies face the challenge of having to provide high-quality services while keeping costs low. With proper planning and training, logistics companies can reduce costs.

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