When arranging for container drayage services, shippers and logistics professionals often encounter several challenges. Understanding these issues can help you navigate the complexities of drayage booking more effectively. Here are the top five issues to consider:
1. Booking with a Broker vs. a Direct Drayage Trucking Company
One of the first decisions you'll face is whether to book through a broker or directly with a drayage trucking company. Each option has its pros and cons:
Booking through a Broker:
- Pros: Access to multiple carriers, potentially competitive rates, single point of contact for multiple shipments.
- Cons: Additional layer between you and the actual carrier, potential for miscommunication, possible markup on rates.
Booking directly with a Drayage Trucking Company:
- Pros: Direct communication with the carrier, potentially lower rates, better control over the process.
- Cons: Limited to one company's capacity and routes, may require more effort to find the right carrier.
Ultimately, the choice depends on your specific needs, volume of shipments, and preferred level of control over the process. For consistent, high-volume shipping, direct relationships with carriers often prove beneficial.
2. Congestion at Port Terminals
Port congestion is a significant issue that can lead to delays and increased costs. When terminals are overloaded with containers and trucks, it can result in:
- Extended wait times for truckers
- Delayed container availability
- Missed delivery windows
- Increased operational costs
To mitigate these issues:
- Stay informed about port conditions and plan accordingly
- Consider off-peak hour pickups when possible
- Work with carriers who have strong relationships with the terminals
- Build buffer time into your schedules to account for potential delays
3. Equipment Shortages
Chassis availability is crucial for container drayage. Equipment shortages, particularly chassis shortages, can severely impact operations. At ports like Miami and Port Everglades, where chassis shortages are common, consider the following:
- Understand the chassis provisioning model at your port (terminal-owned, shipping line-provided, third-party pool, or carrier-owned)
- When possible, work with trucking companies that own their chassis fleet
- Be prepared for potential additional costs associated with chassis rental or use
- Consider long-term chassis leasing options for consistent, high-volume shipping
Using a trucking company with its own chassis can provide more reliability and flexibility in equipment availability.
4. Customs Inspections
Random customs inspections are an unavoidable part of international shipping. These inspections can cause significant delays and additional costs:
- Containers may be moved off-site for inspection
- Inspection fees must be paid before release
- Delays can range from a few days to several weeks
To manage this risk:
- Factor potential inspection delays into your timelines
- Ensure all documentation is accurate and complete to minimize the risk of triggering an inspection
- Work with experienced drayage providers who can efficiently handle customs procedures
- Consider customs bonds and programs like C-TPAT to potentially reduce inspection frequency
5. Overlooking Accessorial Fees
Accessorial fees can significantly impact the total cost of drayage services. Common accessorial charges include:
- Port wait time fees
- Chassis rental charges
- Split chassis charges for overweight containers
- Overweight container fees
- Hazardous material handling fees
- Refrigerated container (reefer) charges
To avoid surprises:
- Always ask for a comprehensive list of potential accessorial fees
- Understand which fees apply to your specific shipment type and route
- Factor these potential costs into your overall logistics budget
- Work with transparent carriers who clearly communicate their fee structures
By considering these top five issues when booking drayage services, you can better prepare for potential challenges and make more informed decisions. Remember, the key to successful drayage operations often lies in choosing the right partners, maintaining clear communication, and planning for contingencies.
Contact our team today to get help on any of your drayage questions.