What’s the Role of Drayage Services in the Supply Chain?

What’s the Role of Drayage Services in the Supply Chain?

The core component of the supply chain process is drayage transportation. But companies often overlook this service. It’s because the companies don’t know what the role of drayage freight service is in the supply chain. One of the important roles is to minimize complications that come throughout the supply chain. 

Before we go into the role details, we will briefly describe drayage services. It’s a logistic service that offers short-distance support.   The transportation is commonly done within the same region or city.  The service is important because it moves freight between intermodal ports, such as from ships to rail or rail to truck. 

Understand the role of drayage services in the supply chain 

To increase the efficiency of the supply chain, there should be a way to transfer freight from one shipping method to another.  Drayage freight service manages the actual movement of the containers from one shipping mode to another. 

An example of drayage transportation service:  If a shipping container full of goods arrives at the port and the same goods have to be shipped to a warehouse for further journey, a drainage service provider becomes helpful. Drayage services handle the movement of containers from ship to warehouse and so forth. 

The role is to be the middlemen in the shipment journey of the goods. The service makes management of the goods easy.

People think transferring materials from an ocean port to the next destination is easy, but actually, it’s very complex.  There is a negative impact on the operations because of port congestion, extreme climatic conditions, and other factors. As a result, the supply chain falls behind its ideal timeline.

Other benefits of drayage services

Flexibility and efficiency

For moving cargo containers between various transportation modes, drayage services offer a high level of flexibility. They connect ships, trucks, and other forms of transport to move the containers. Due to flexibility, the transfer is efficient and seamless and the transit time is less.

Cost-effective

For short -distance shipping, drayage is the most cost-effective solution.  Primarily, the service is economically beneficial when it’s compared to long-haul trucking. It’s said that moving cargo containers from the port to nearby warehouses becomes easier with this service.

Integrates with intermodal freight transportation

In intermodal freight transportation, drayage plays a vital role.  Intermodal service is where different modes of transport options are combined, reducing cost and optimizing efficiency. The thing is, drayage transportation enhances the effectiveness of intermodal logistics by facilitating the smooth transfer of cargo containers.

Timely deliveries

For the efficiency of the supply chain, timely deliveries are important.  With drayage services, you can meet the demands of your customers by ensuring the prompt transfer of the goods to their final destinations. This also reduces the inventory holding costs.

Bottom Line

This post proves that drayage transportation has an important role in increasing the efficiency of the supply chain. So, you shouldn’t overlook it. To hire the service for your company, contact KCH Transportation today.  We have a team of experts who will carefully handle your goods during transit.

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