Drayage

Drayage refers to the short-haul trucking of freight containers — typically moving ocean containers from a seaport to a nearby distribution center, warehouse, or intermodal rail ramp (or the reverse for exports). It is the critical "first mile" of an import container's journey from ship to destination, and the "last mile" of an export container's journey from factory to vessel.

The word originates from "dray" — a low, flat cart traditionally pulled by horses that was used for heavy loads at docks and warehouses.

How Drayage Works

When a container ship arrives at a port like Los Angeles/Long Beach, Savannah, or New York/New Jersey, thousands of containers must be discharged and moved off the terminal within a narrow window to avoid demurrage. Drayage carriers — typically owner-operators or small fleets running day-cab tractors — queue at marine terminals, pick up containers on chassis, and deliver them to consignees' warehouses, often within a 50-mile radius of the port.

The reverse flow handles exports: drayage carriers pick up loaded export containers from shippers' facilities and deliver them to the terminal for vessel loading, often against tight vessel cut-off deadlines.

Port Drayage vs. Intermodal Drayage

Port drayage: Moving containers between marine terminals and nearby distribution centers or warehouses. The most common type.

Rail drayage (intermodal): Transporting containers between a port or shipper's facility and an intermodal rail ramp, where containers are loaded onto double-stack rail cars for long-haul movement inland. Used heavily in transcontinental US freight where rail is cheaper than long-haul truck.

Drayage Rates and Cost Factors

Drayage is priced by move type, distance, and market conditions. Rates are typically quoted as a flat fee per container move, ranging from $200 for a simple local drop to $800+ for complex moves with long wait times, chassis fees, and scale weigh requirements.

Key cost factors:

• Port congestion: Chassis shortages and long terminal gate queues increase driver dwell time, reducing productivity and driving up rates
• Chassis fees: Importers pay daily chassis rental fees when the carrier doesn't own their own chassis
• Overweight permits: Containers exceeding state highway weight limits require per-trip overweight permits
• Hazmat placarding: Additional documentation and compliance requirements for dangerous goods containers
• Pre-pull fees: When a container is moved from the terminal to a yard before delivery to avoid vessel free-time expiration

The Drayage Driver Shortage

Port drayage in the US is predominantly served by owner-operators — independent truck drivers who own their tractors and lease or contract with drayage companies. This workforce has chronically struggled with regulatory compliance costs (California AB5 independent contractor rules), aging equipment, and the economics of terminal wait times that go uncompensated. The driver shortage is a persistent bottleneck at US ports and a key contributor to supply chain fragility.