This guide is invaluable as it delves into the various facets of cartage services, including types, processes, and the specific challenges they address.

From local carting services to container drayage, understanding these components allows businesses to optimize their operations and meet unique needs effectively.

Understanding Cartage in Shipping

Cartage refers to the specialized transport of goods over a relatively short distance, typically within a metropolitan area.

This critical segment of the logistics chain often involves transferring freight from a central hub to a final destination, such as a retail store, a local business, or directly to the consumer’s door.

Understanding the intricacies of cartage helps companies improve efficiency in their overall logistics strategy. It ensures that the final leg of the shipment process is smooth, timely, and cost-effective. 

Utilizing both drayage services for moving large containers from ports and lighter hauls for smaller units within commercial areas, cartage agents provide tailored solutions that meet the specific needs of each shipment.

Types of Cartage Services

Cartage services vary widely to address the specific demands of transporting goods across different locations and distances.

Local Cartage

Local cartage often involves the use of a small van for the delivery of goods within a close radius, typically within a city or specific commercial area. These services are integral for businesses that require quick, efficient transport of goods over short distances.

Terminal Cartage

• Inter-terminal Cartage: Facilitates the transfer of cargo between different terminals within the same hub, essential for coordinating multiple transport modes.
• Intra-terminal Cartage: Supports operations within a single terminal, helping manage cargo that requires sorting or temporary storage.
• Expedited Terminal Cartage: Prioritizes speed to move goods quickly between terminals to meet strict delivery timelines.

Pier Cartage

Pier cartage services are crucial for moving goods from ships to storage areas or other forms of transportation, ensuring a seamless transition from sea to land transport.

Each type of cartage service offers unique benefits tailored to meet the critical demands of cargo transportation, ensuring goods reach their final destinations efficiently and safely.

The Process of Cartage in Shipping

Cartage ensures the seamless transfer of goods from initial pickup to final delivery. Key steps in this process include:

1. Order Placement: A client requests a pickup from a cartage company detailing the cargo and delivery requirements.
2. Pickup: A truck arrives at the specified location, where workers load the goods efficiently and securely.
3. Transport: The cargo is transported over short distances, often within the same city or region.
4. Delivery: Upon arrival at the destination, the goods are offloaded, with confirmation of delivery sent to the client.

Cartage Fees and Cost Factors

Cartage fees are determined by several factors, which are essential for businesses to consider when planning their logistics budgets. These costs typically include the handling, fuel, and maintenance of transport vehicles. 

In addition to handling, fuel, and maintenance costs, cartage fees may also include charges related to processing legal documents necessary for transporting certain types of goods.

Key factors influencing these fees are the distance the cargo needs to travel, the type of goods being transported, and the specific services required, such as expedited delivery or special handling.

Importance of Cartage in Last-Mile Delivery

Cartage is integral to last-mile delivery, the final step in the delivery process that places goods in the hands of the end-user. This service is particularly vital in urban settings where quick, efficient deliveries are necessary to meet the expectations of consumers. 

Effective last-mile delivery enhances overall efficiency and customer satisfaction, making cartage an indispensable element of urban logistics.

Challenges in Cartage Operations

Cartage operations face multiple challenges:

• Traffic Management: Navigating through congested areas to maintain delivery schedules. Efficient traffic management is crucial to avoid delays and ensure timely arrivals.
• Time Constraints: Meeting tight delivery windows. Strict schedules require precise planning and flexibility to adapt to unforeseen delays.
• Coordination: Integrating with larger logistics networks to ensure seamless transport of goods. Effective coordination across different stakeholders minimizes disruptions and enhances operational efficiency.

Technological Integration in Cartage Services

Technology enhances the efficiency of cartage services through:

• Tracking Systems: Offering real-time cargo tracking to clients. These systems provide transparency and visibility throughout the transportation process, allowing clients to monitor their shipments closely.
• Route Optimization Software: Ensuring the most efficient delivery routes are used. By analyzing factors like traffic patterns and road conditions, route optimization software helps minimize travel time and fuel consumption.
• Digital Platforms: Facilitating communication and coordination among all stakeholders. Digital platforms streamline collaboration between cartage companies, clients, and other parties involved in the logistics chain, enhancing overall efficiency and service quality.

Cartage in Different Industries

Cartage services adapt to the unique demands of various sectors:

• Retail: Ensures that stores receive their products on time for consumer purchase.
• Manufacturing: Moves raw materials or finished goods between facilities or to distribution centers.
• E-commerce: Plays a crucial role in promptly fulfilling online orders and maintaining the flow from warehouses to consumers.

Choosing a Cartage Service Provider

When selecting a cartage company, there are a few key factors to remember. Firstly, it’s important to ensure the company consistently meets delivery schedules. Additionally, you should confirm that they can service all necessary locations. 

Another consideration is the provider’s experience with specific types of cargo. Finally, it’s important to balance affordability and the quality of service the provider offers.

Conclusion

Cartage services play a crucial role in enhancing the efficiency and effectiveness of cargo transportation, especially over short distances. Through various types, such as local, terminal, and pier cartage, these services ensure that freight reaches its final destination promptly and securely. 

Key considerations like cartage fees, the importance of last-mile delivery, and the integration of technology further underscore the vital role of cartage in the broader shipping and logistics sector.

Now equipped with critical information about the cartage process, you can make informed decisions about selecting cartage services that best fit your logistical needs. 

The Challenge

Containerized heavy weight cargoes such as wines and spirits, tile and granite, lumber, resin, foodstuffs, and metals are not within traditional container payload weight limits.

Higher payloads were getting increasingly difficult to secure and overweight permit options almost impossible to obtain. Shippers required experienced motor carriers that specialized in heavy weight loads who could obtain the necessary permits to legally transport these loads. Most carriers had no motor carriers to take on the loads once they left the vessel and port.

U.S. states have very strict payload weight limitations: 38,000 lbs. per 20’, 44,000 lbs. per 40’ and 41,000 lbs. per reefer. Shippers were being forced to use additional containers in order to lighten the heavy loads for transport.

They faced a major problem: less cargo in each container equaled more containers per shipment. The bottom line? Paying additional costs to transport their heavy loads.

The Solution

For pickup and delivery of heavy cargo moving via the Port of New York, ACL can significantly increase those heavy weight container limitations. ACL has teamed up with an experienced New Jersey-based motor carrier that specializes in heavy weight loads. They offer professional drivers who are experienced with heavy loads, provide a fleet of quad-axle tractors with two types of tri-axle chassis: 20’/40’ combo tri-axle chassis and 40’ super single tri-axle chassis.

Special permits are provided for New York, New Jersey, Pennsylvania, and Delaware that allow the maximum gross weight of cargo-container-chassis- tractor to be increased from 80,000 lbs. to 90,000 lbs. Heavy New England deliveries are made using tri-axles and quad-axle tractors.

ACL helps heavy cargo stay in conformance with state highway regulations. What this means for shippers is more cargo in each container which equals fewer containers per shipment.

Bottom line? Much less cost! ACL can easily handle containerized heavy weight cargoes that are not within traditional container weight limits. Shippers can now load additional freight into one container with realized cost savings. All heavy shipments will be handled using proper permits in accordance with local and state authorities.

ACL has developed transportation options in New York. We work with professional motor carriers who are highly experienced with heavy cargo and are experts at providing higher payload weight limits with the use of 4-axle trucks, tri-axle chassis, and permits.

ACL can now deliver cargo safely/legally via New York with quad-axle tractors, tri-axle chassis, and special permits for New York, New Jersey, Pennsylvania, Delaware, Massachusetts, Connecticut, and Rhode Island. ACL also has opportunities to widen the benefits found for New York to the Ports of Baltimore and Norfolk if there is interest. Please contact us for more details.

To learn more:
nambookings@aclcargo.com
800-225-1235
www.ACLcargo.com

“Drayage’s impact on the entire lifecycle of a shipment is pivotal,” Ricksecker says. “Any errors or inefficiencies in this phase can have far-reaching consequences throughout the entire supply chain.

“Efficiently and accurately executing drayage is essential for the smooth flow of goods from their arrival at the port to their end destination,” she adds.

Drayage is “the connective tissue between U.S. ports and rail ramps,” notes Peter Weis, chief information officer and senior vice president of supply chain services for Nevada-based ITS Logistics.

“Drayage is a high-risk area because condensed activities happen in congested areas in a short amount of time,” Weis says. “Drayage is the first domino of the supply chain; if it doesn’t go right, it holds up everything down the line.”

As supply chain leaders better understand drayage’s importance, technology providers are developing sophisticated solutions that are transforming the industry’s traditional way of operating. The result is greater efficiency, improved service, and compelling new possibilities on the horizon.

A Fresh Embrace of Technology

An assortment of critical challenges affect the drayage industry, such as capacity constraints, congestion and delays, compliance and regulations, maintenance and repairs, driver shortages, labor disruptions, appointment challenges, asset allocation and utilization, tight timelines, lack of visibility, outdated legacy software, and cost pressures.

“These challenges can impact the efficiency and profitability of drayage operations, making it difficult for carriers to compete in an underserved market,” says Michael Mecca, CEO and founder of PortPro, a Jersey City-based company that provides a drayage transportation management system.

When drayage companies use outdated technology, it can make those challenges that much more difficult.

“Drayage inefficiencies can be particularly challenging due to routing, manual paperwork, and communication issues,” Mecca explains. “These inefficiencies can lead to longer wait times, increased costs, and lower customer satisfaction.”

Before the pandemic-era supply chain disruptions, drayage historically had not seen much innovation. Among the factors holding the industry back was its skepticism of “flashy tech released by pure software providers,” Weis says.

“Drayage is an incredibly complex process, and businesses are hesitant to trust software providers that don’t offer hard-won ground operations experience,” Weis says.

Ricksecker agrees the drayage field has historically been slower to adopt technology than other segments of the supply chain, but the pandemic acted as a catalyst for digitalization across all sectors. The pandemic not only spotlighted drayage’s critical importance but also that it has been underserved by tech advances, leading to growing investor interest.

“This new recognition has resulted in increased investment in technology solutions tailored to the drayage industry,” Ricksecker says, as has the persistence of legacy systems in many ports and logistics entities.

“Outdated systems have become a hindrance as the complexity of supply chain operations has increased,” Ricksecker says. “Drayage companies are increasingly acknowledging the advantages of technology to optimize operations, streamline processes, and maintain competitiveness in the evolving logistics landscape.”

Array of Tech Solutions

As the importance of drayage grows, sophisticated technology solutions are hitting the market and transforming the industry’s traditional way of operating.

A wide variety of tech advancements have led to notable improvements in drayage.

“Technology empowers drayage carriers by providing the tools and capabilities necessary to enhance visibility, streamline operations, optimize planning, and effectively manage various aspects of their business,” Ricksecker says. “These advancements contribute to greater efficiency, cost savings, and improved service quality in the drayage segment of the supply chain.”

Several different types of technology are helping to improve efficiency and streamline operations in the drayage field.

“Transportation management systems and electronic logging devices can help carriers to optimize routes, track shipments in real time, and reduce paperwork,” Mecca says. “Mobile apps and online portals make it easier for customers to track their shipments and communicate with drayage carriers.

“Cutting-edge integrations allow for the real-time bilateral sharing of information so cargo owners can be kept informed on status updates, document sharing, ETAs, and more,” he adds.

GPS elements located within the truck provide “more transparency to the last mile than there was before,” notes Mike Wilson, CEO of Consolidated Chassis Management, a New Jersey-based company that manages chassis on behalf of ocean carriers.

Enabling Transparency

“GPS can also provide data to the operating company to see where they’re being efficient and where they’re being inefficient or where there may be delays or other issues,” Wilson says. “The ability to have onboard monitoring systems, both for the truck and for the trailer, has helped make things safer and more efficient. It also provided more information to the carrier to better serve their clients.”

It’s simple: Customers want to know where their freight is.

“Drayage usually is the most complicated area to track because it works on the highway systems and you never know what’s going to happen,” Wilson says. “Delays, accidents, construction diversions—they all impede a truck’s ability to get to its destination.

“Transparency allows the shipper to see where their freight is, and then plan around that,” he adds. “Transparency is also important in terms of how data is accumulated and used. Transparency isn’t just being able to query a container, chassis, or trailer on the screen and see where it is. Data accumulates over time, and it provides valuable information for analytics down the road.”

Similarly, “automated tracking offers real-time visibility into container locations, minimizing errors,” Ricksecker notes. “Simultaneously, live load tracking with geofencing facilitates better communication and coordination.

“Data-driven algorithms efficiently match imports with carrier empty acceptance,” she says. “This optimization of import loads and carrier empty acceptance, along with streamlined street-turning of containers, brings mutual benefits to both drayage carriers and customers. These practices result in cost savings by reducing empty container trips and improving asset utilization, leading to competitive rates for customers.

“Moreover, they decrease delays, ensuring prompt container availability and reducing the risk of detention fees,” Ricksecker says.

Artificial intelligence (AI) is leading the tech-based reshaping of the drayage industry.

“AI plays a central role in streamlining operations, predicting congestion, optimizing traffic flow, analyzing sensor data for maintenance predictions, and improving route optimization, resource allocation, and the overall customer experience,” Ricksecker says. “AI-driven software algorithms are revolutionizing load rate determination in drayage, reducing costs, and establishing more competitive drayage rates.”

ITS Logistics developed ContainerAI during the recent disruptive years. The solution uses AI to aggregate critical data points into a cloud-based platform with rail data, trucking milestones, ocean voyages, and port charges, among other information.

“AI allows us to sift through the available data to find the most trustworthy points, giving our customers intelligent conclusions,” Weis says.

The Rise of AI

“AI will become more relevant, with predictive and generative AI especially moving to the forefront,” Weis says. “Accurate and high-quality data must be the driver behind AI decision-making; otherwise, bad input equals bad output. Once the quality of data and business rules are defined, routine business decisions can be made autonomously.

“But that’s not to say that people and relationships won’t play a part,” Weiss adds. “The way forward is developing technology to improve relationships and empower people to their highest use.”

The possibilities of AI will only grow with time—and more data and users.

“Over time, as this data accumulates and we see increasingly more people comfortable with utilizing AI, these programs will be able to help companies be more efficient and drive out inefficiency—empty miles or equipment maintenance, for example—from the network that the drivers are operating,” Wilson says. “That will continue to evolve. We’re just at the beginning.”

Looking Ahead

Going forward, technology and innovation can help drayage operators transform their businesses and better navigate challenges facing the industry.

Through that effort, they can become better partners to other stakeholders in the supply chain, particularly as drayage firms progress from manual operations to using tech tools to improve decision-making and efficiency.

“Efficiency gains inside their own operations and their ability to run their businesses more effectively allow drayage operators to better serve their customers,” Mecca says.

When a drayage trucking company achieves operational efficiency and gains the capacity to offer comprehensive information and data to its customers, this translates into improved service overall.

And, enhanced operational performance across drayage companies contributes to compounding efficiency gains throughout the entire supply chain.

Technology and innovation are poised to drive a major transformation of the drayage field in the years ahead.

Revolutionary Changes

“The traditional methods of conducting drayage operations, which may have relied on manual processes and outdated systems, will increasingly be seen as slow, resource-intensive, and costly,” Ricksecker says.

“This transformation will affect various facets of drayage—including booking, scheduling, tracking, and reporting—with the goal of streamlining operations and enhancing customer service,” she says.

“Over the next five years,” Ricksecker adds, “the drayage field can expect revolutionary changes that leverage technology to improve efficiency, sustainability, and customer experiences, ultimately reshaping the way goods move from point A to point B.”

Tech Shows Chassis Some Love, Too

For drayage operators, the availability and reliability of chassis is essential to success. Delays and interruptions in chassis supply can undermine the broader supply chain, and a chassis shortage added to the congestion issues that arose at some ports during the pandemic.

Effective and efficient chassis supply is as important to drayage as effective and efficient tractor supply, notes Mike Wilson, CEO of Consolidated Chassis Management (CCM).

Aiming to improve efficiency in chassis supply with the aid of its CIT fleet management technology, CCM launched SACP 3.0 in 2023.

Here’s how it works. Previously, various leasing companies put chassis in a chassis pool in the region, and CCM managed those chassis for those providers. That system, however, encountered persistent challenges keeping enough chassis in the pool and assuring their quality.

Under SACP 3.0, CCM has become the provider of the chassis, and can now offer “total asset control” under a single-provider utility model that is a public-private partnership with the Georgia Ports Authority, the Jacksonville Port Authority, the North Carolina State Ports Authority, and the Ocean Carriers Equipment Management Association. Truckers can reserve chassis over a network of locations using an online portal.

The system will lead to fewer motor carriers waiting in line in and out of terminals and an overall more efficient and reliable approach for drayage, Wilson says.

“Our program is to assure that we have enough chassis in the fleet to accommodate cargo demands, as well as to ensure that the asset itself is of high quality,” he says. “This way, when a motor carrier picks up a chassis or uses one of our chassis, it is reliable, and they don’t break down on the road, causing them to be delayed and incur lost time.”

In addition, chassis are growing more technologically advanced. Chassis innovations over the years have bolstered safety, with advancements such as hub-piloted wheels, anti-lock brakes, LED lights, radial tires, brake systems that keep the brakes cooler, and improved visibility.

“We have equipped the chassis with electronics to be able to plug and play for GPS and telematics,” Wilson adds. “You won’t see them on every chassis tomorrow, but over time, these telematics, which are essentially sensors in different operating components in the chassis, will be common.”

Chassis are evolving, just as much as tractors, trains, ships, and warehouse systems. “Chassis are keeping up with the technological evolution that we’re seeing in the transportation industry,” Wilson says.

Shippers Share High Hopes

What are shipper expectations for Q4—traditionally the busiest shipping season of the year? The latest BlueGrace Logistics Confidence Index finds:

• Expected revenue growth. Positive responses increased, indicating most shippers (64%) are optimistic about revenue growth in the fourth quarter of 2023.
• Impact on inventory levels. Responses reveal a nuanced view of shippers’ outlook on inventory levels. Although a slightly larger portion compared to Q3 anticipates revenue fluctuations negatively affecting inventory, the majority still foresees a positive impact. This mix of perspectives suggests a dynamic marketplace where adaptability will be key.
• Order sentiment. A noteworthy finding shows the unprecedented level of neutral responses at 66% regarding order sentiment. This high level of uncertainty hints at an equilibrium between expansion and contraction, implying that most shippers are adopting a cautious approach, likely influenced by prevailing market ambiguities.
• Consensus. The Q4 data reveals a remarkable alignment among shippers in terms of revenue, inventory, and orders. This convergence, not seen in more than one year, showcases a unified perspective within the industry and signifies that stakeholders have identified common ground and expectations for the upcoming quarter.

Shipment Volumes and Peak Season: What to Expect

Facing a complex international scenario of inflationary pressure and high interest rates, there is a ton of speculation around the effects of the 2023 peak season, with global stocks signaling caution and reflecting a slower pace of replenishment.

The cycle of shipments and restocking for 2023 will be very similar to 2022, when the peak season did not increase the respective volumes, experts predict.

“It is expected that the rising interest rates around the world, except in Japan, will make inventory replenishment and shipping less necessary,” says Mario Veraldo, CEO MTM Logix, a logistics company. “However, unlike 2022, when rates were reduced during the high season, there is an expectation that rates will have a small increase this year.”

Veraldo attributes this recovery to global increases in specific product categories, reflecting a growing relationship in product categories in different geographical regions.

“These trends provide insights into current market dynamics, highlighting the importance of adaptability and strategic planning in a complex global market environment,” he notes. “The main challenge lies in the replenishment process in many sectors, which generally involves little data and relies heavily on intuitive ‘gut feelings’. This approach contributed to the whip effects experienced during the pandemic.”

The order book for container ships is at its highest ever, reflecting the restructuring of supply and demand in the sector. This aligns with the trends in global inventory figures, interest rates, and specific product category increases, all of which are influencing the current freight rate dynamics.

These trends suggest a scenario in which, unless the world economy grows and the movement of goods increases, freight rates could fall below pre-pandemic levels. This could lead to a scenario of prolonged deflation, Veraldo notes.

Yellow Went Under. Now What?

Now that Yellow Corp. is out of business, what can shippers do to keep freight moving while limiting costs?

With Yellow’s operations accounting for 9% of total U.S. LTL capacity, its collapse immediately tightened up the market. Other carriers are happy to keep former Yellow freight moving—for a price. Analysts say Yellow rates were 10-20% below competitors, and carriers are raising rates in the aftermath of the bankruptcy.

Pricing aside, carriers are also using the Yellow collapse to optimize the freight they move. If new loads from former Yellow customers are a better, more profitable fit for the carrier’s network than existing freight, they take action to purge less-desirable freight.

How? Mid-contract, out-of-cycle pricing actions. Shippers receive notice of a major rate increase or accessorial charge, and they have the choice to accept it or cancel their contract. An example of this tactic is a carrier changing their rules tariff on lightweight shipments. Carriers have a rule in their tariffs document called the “cubic capacity minimum” that applies an alternate rate or the standard rate—whichever is highest—to lightweight, low-density shipments of 750 cubic feet and greater that weigh 6 pounds per cubic foot or less.

For some carriers, the cubic capacity minimum now has been updated to apply to shipments of 350-750 cubic feet at 4 pounds per cubic foot—targeted to price out light, fluffy freight and smaller shipments. The shift makes shipments as small as three pallets eligible for the cubic capacity minimum, down from the previous 6 pallets threshold.

The cyclical nature of transportation supports the fundamentals for shippers: Build lasting relationships and maintain favorable contracts by upholding practices that make them a shipper of choice.

But careful analysis can also pay off. Identifying lane imbalances can allow shippers to capitalize on major differences among carriers that yield meaningful cost savings.

Success in today’s LTL market requires investing in the give-and-take of long-term carrier relationships and digging deep to capitalize on opportunities when market conditions work in their favor.

– Kevin Day, President, LTL, AFS Logistics

Taking a Hard Look at Drayage

The U.S. drayage industry is poised to grow from $6.1 billion in 2022 to $8.3 billion by 2027. A new report from PortPro, a drayage software provider for drayage carriers, identifies the following trends:

•  Primary growth drivers come from a global increase in consumer demand for ecommerce. Areas to watch for more future growth include electronics, food and beverage, autos, chemicals, oil and gas, and pharmaceuticals.
•  Drayage is at a technological crossroads. Growth-minded drayage carriers are adopting technology to digitize operations and improve efficiency and services.
•  Increased investments to strengthen the infrastructure of the entire port ecosystem to accommodate growth in consumer spending and imports. Improvements to bridges, new equipment, new larger vessels, overall operation expansion, new technologies, and more employees impact all players.
•  A sustainable future is top of mind, but slow in adoption. Carriers share concerns for building infrastructure to support e-fleets and other AI opportunities on the road and in warehouses.

Regulations Roundup

No matter what industry your company is in, you need to stay aware of relevant regulations and take steps to comply.

Here is a brief roundup of some major government agencies in the logistics and supply chain space and their current rules.

Federal Motor Carrier Safety Administration (FMCSA)

The FMCSA regulates commercial motor vehicle (CMV) safety in the United States. This includes regulations on securing cargo, driver hours of service, and vehicle maintenance. Recent FMCSA rules include:

• More frequent drug and alcohol testing for drivers. The FMCSA now requires truck drivers to be tested for drugs and alcohol at least once every two years, and more often if they have a positive test result or are involved in a crash.
• Electronic logging devices (ELDs). All commercial motor vehicles must be equipped with ELDs that track driver hours of service. This rule was originally implemented in 2017, but some exemptions expired in 2023.
• More efficient and effective safety fitness determinations. The FMCSA’s new safety fitness determination process focuses on identifying carriers that are most likely to pose a safety risk, and takes into account a wider range of factors, such as vehicle maintenance records and driver history.
• The safe introduction of automated driving systems (ADS). The FMCSA has published a notice of proposed rulemaking (NPRM) for ADS-equipped commercial motor vehicles. The NPRM seeks comment on several issues, including how to ensure that ADS-equipped CMVs are operated safely and how to address the liability implications of these vehicles.

Food and Drug Administration (FDA)

The Food and Drug Administration regulates the safety of food, drugs, and medical devices including how they are manufactured, transported and stored.

While there are no new transportation regulations specifically for 2023, the FDA’s key transportation regulations include:

• Hazard Analysis and Risk-Based Preventive Controls for Human Food rule. Requires food facilities to identify and control hazards that could cause foodborne illness, and to implement preventive controls to reduce the risk of these hazards.
• Sanitary Transportation of Human and Animal Food rule. Establishes sanitary practices for truckers and rail shippers, loaders, and receivers involved in transporting human and animal food to ensure its safety.
• Current Good Manufacturing Practice (cGMP) regulations for Finished Pharmaceuticals: Establishes requirements to ensure quality and safety during the manufacturing, processing, packaging, labeling, and holding of finished pharmaceuticals.

Environmental Protection Agency (EPA)

To reduce greenhouse gas emissions and air pollution from vehicles, the EPA has proposed several new transportation regulations for 2023, including:

• New fuel economy standards for light-duty vehicles. These standards would require light-duty vehicles such as cars and trucks to get an average of 55 miles per gallon by 2026, up from 40 miles per gallon in 2023.
• New emissions standards for heavy-duty vehicles. These standards would require heavy-duty vehicles such as trucks and buses to emit less nitrogen oxides and particulate matter.
• Renewable fuel standards. These standards would require a certain percentage of transportation fuel to come from renewable sources, such as corn ethanol and biodiesel.
• Proposed regulations on electric vehicles. These regulations could include requirements for automakers to sell a certain number of electric vehicles each year, or for utilities to provide charging infrastructure for electric vehicles.

Governing Bodies

Here are some other government agencies issuing regulations that may affect your supply chain and logistics operations:

Occupational Safety and Health Administration (OSHA) regulates workplace safety.

Customs and Border Protection (CBP) regulates the import and export of goods.

Department of Transportation (DOT) regulates the transportation of goods by air, land, and sea.

Securities and Exchange Commission (SEC) regulates the financial aspects of supply chain operations.

Syfan Logistics was recently contacted by a heavy machinery manufacturer in their own backyard who was encountering lengthy delays on materials shipped from overseas suppliers. These delays were due to the manufacturer’s logistics partners waiting to collect their shipping containers from ports until the last free day (LFD).

Since their logistics partners were not acting as quickly as possible within the ports, the manufacturer was forced to wait for their materials for hours—and even sometimes days.

In this instance, the materials inside their container couldn’t wait as the parts inside were crucial to the continuation of their production line. If these parts were not delivered on time, millions of dollars would be lost with each passing day of no production.

With nowhere else to turn, the manufacturer began scrambling for a solution. They called several logistics companies for assistance only to be told their timeframe was unrealistic and could not be accomplished. Knowing the 3PL’s history with expedited over-the-road solutions, the manufacturer made one last call to Syfan Logistics.

The manufacturer called at 4 p.m. on a Friday, explained the delay, and then asked if Syfan could get their container to them in 12 hours or less. Showcasing their “never say no” approach to business, Syfan readily accepted the challenge and got to work.

The Solution

Syfan Logistics was confident this challenge could be overcome by utilizing their Expedited Port Model. This model was built from Syfan’s decades of experience in over-the-road trucking. By taking their existing expedited model and applying it to ports, Syfan found they could eliminate a lot of wasted time and wasted money.

Wasted time and wasted money were exactly what the heavy machinery manufacturer was trying to avoid. Upon receiving the call, the Syfan drayage team was undeterred by the deadline and timing. They approached this challenge like any other—by being hands on with what they call “white glove service.”

The foundation of Syfan’s “white glove service” is being available 24/7, providing proper front-end service, and using available resources to fix problems that others can’t.

With its 24/7 availability, Syfan Logistics had team members ready to start tracking containers and rerouting truck drivers as soon as the manufacturer hung up the phone. Delivery schedules were altered to better accommodate the manufacturer’s narrow timetable.

Next, the drayage team members used technology to track the container’s location, and then relied on their relationships with local port workers to expedite the process of clearing the container and transporting it to the ready-and-waiting truck.

Due to the quick efforts of their drayage team, Syfan Logistics was able to deliver on their promise. The parts were delivered to the manufacturer in just under 11 hours, roughly an hour before the strict deadline that was set. The manufacturer was able to resume production and avoid the major delay they feared would cost them greatly.

This case is yet another example of Syfan Logistics’ unique approach to business. Their “never say no” philosophy allows them to take on tasks that other providers won’t, and deliver on the promises they make.

To learn more:
info@syfancorp.com
855-287-8485
syfanlogistics.com

Recognized as an integral link within the supply chain, any delays or disruptions in drayage operations can have far-reaching consequences, impacting the entire chain.

With the advent of the latest technologies supporting real-time visibility, supply chains have the opportunity to enhance transparency and efficiency. Real-time visibility enables cargo owners and receiving warehouses to closely monitor the progress of their shipments while in transit.

This capability provides valuable insights that aid in planning or adjusting receiving operations, identifying potential issues in a timely manner, and ultimately making decisions that ensure smooth transportation of shipments from pickup to delivery.

The Importance of Real-Time Visibility in Drayage

By leveraging real-time visibility, supply chain stakeholders can proactively address challenges and streamline their processes, resulting in improved overall performance and customer satisfaction.

The benefits of integrating real-time visibility into drayage operations are plentiful, including: 

Substantiated detention and demurrage claims: The contentious issue of billing accurately is at the forefront of shippers’ minds and bottom lines, and accurate location data can defend against overcharges by terminals, carriers, and pool operators.  

Enhanced customer satisfaction: Keeping customers informed about the status of their shipments boosts overall satisfaction. Conversely, a lack of real-time delivery information leads to customer service teams receiving and responding to multiple calls and complaints, and tends to erode the relationship between all parties. 

Boosted efficiency: By identifying bottlenecks and inefficiencies, real-time visibility facilitates changes that enhance efficiency and cut costs. Productivity and efficiency are both increased through streamlined communications.

Increased safety and security: An estimated $223 million in cargo was stolen in 2022, according to an analysis by Verisk’s CargoNet. Real-time tracking of drivers and cargo helps prevent accidents and can be an early warning sign of a theft-related diversion or interception.  

Found opportunities to meet sustainability targets: Routing, traffic, transit and waiting time data can be collected and analyzed to optimize routes and accurately measure carbon and greenhouse gas emissions, and proactive steps can be taken to reduce a supply chain’s environmental impact.

As government regulations continue to evolve and as companies seek to address environmental concerns to not only meet these requirements, but to also be good stewards, accurately measuring and monitoring emissions will become increasingly important. 

Technologies Enabling Real-Time Visibility

Several technologies can work in tandem to enable real-time visibility in drayage operations:

GPS tracking: Drayage trucks can be tracked in real-time, providing companies’ transportation management systems (TMS) with accurate and up-to-date information on truck locations and movements. GPS can enhance asset management and recovery, promote driver safety, and improve theft prevention.

Industrial IoT (Internet of Things) and M2M (Machine to Machine) Monitoring:  This enables location and mileage tracking to enhance prevention maintenance programs. Cargo owners and receiving warehouses utilizing IoT and M2M are better able to monitor and analyze data to gain insight on how to improve all areas of operations and reduce costs. 

Client-facing APIs: Clients can have immediate access to spot rates, streamlined quote submissions, and seamless retrieval of proof of delivery (POD) and other crucial documentation directly from their digital devices. This saves time, reduces the likelihood of errors, and contributes to overall optimization. 

Cargo owners and receiving warehouses should look to vendors who harness the power of real-time visibility to enhance drayage operations. This data is invaluable in supervising and optimizing operations, identifying potential issues, and making informed decisions.

Real-time visibility has quickly transitioned from a luxury to an essential component of modern logistics. Embracing the latest technology and adopting real-time visibility solutions enable companies to achieve their operational objectives, enhance financial control, and deliver exceptional customer satisfaction. It empowers us to stay ahead of the curve in an increasingly dynamic and demanding industry.

When evaluating drayage software, it’s essential to consider these key features and functionalities that will directly impact business operations:

Automated container tracking. Enables drayage truckers to monitor the real-time location and status of their  containers, whether they are on a vessel or dock, or sitting empty at a yard.

Automated container tracking helps drayage firms proactively address any issues, such as detention and demurrage (per diem), ultimately reducing per-diem charges. Automated container tracking also helps to optimize trips to and from the terminals.

Real-time dispatch and routing. Allows your team to optimize routes and assign jobs to drivers efficiently—in near real time. By providing accurate, up-to-date information on the location of your vehicles and the status of jobs, a TMS can help you reduce operational costs and improve service quality.

Customer support offered by both the software provider and the product. A reliable support team can help troubleshoot issues, provide training, and ensure that your software runs smoothly.

Transitional training and onboarding. Adequate training and onboarding support are essential to ensure a smooth transition from one TMS to another. Solid support is especially necessary for companies moving to TMS from non-software management tools, like spreadsheets.

A good software provider will offer comprehensive training and resources, such as a knowledge center, to help your team get up to speed quickly, which will help reduce downtime and maximize the benefits of the new system.

Tips to Evaluate Drayage Software

Here’s some simple, and practical advice for selecting the best drayage TMS for your business.

1. Assess your current and future needs. Evaluate your current processes around things like dispatching, driver management, and informing customers of freight status, and identify areas for improvement. Software can dramatically improve the workflow for these processes and bring efficiency benefits you’re likely not getting currently.

Consider the future growth of your business and ensure that the software can scale with your needs.

2. Compare features and pricing. Review the features and pricing of various TMS solutions to find the best fit for your budget and operational requirements. Keep in mind that the cheapest option might not always be the best choice in the long run.

3. Request a demo and explore sales engineering. Before committing to a TMS, request a demo from the vendor and spend time with experts within your organization to ensure that the software meets your expectations and is user-friendly. This hands-on experience will also help you identify any potential issues or shortcomings in the system.

Make an Informed Decision

Carefully considering the features and support that various TMS providers offer can help you make an informed decision and choose the best drayage software for your business. The right software will improve efficiency and cost savings and ensure that your operations are well-positioned to adapt to the ever-changing landscape of the shipping industry.

Transportation management systems are bringing technological innovation to drayage firms, helping them make the switch from outdated, manual processes into the modern era of automation. Digitizing operations is an important step, so it’s important to fully research the options and understand the market.

drayOS–PortPro’s leading drayage TMS–is revolutionizing logistics and supply chains by leveraging cutting-edge technology to streamline processes, optimize routing, and enhance end-to-end visibility. PortPro offers innovative platforms that empower businesses to efficiently manage operations, reduce costs, and grow, driving drayage forward into a new era of digital transformation.