The drayage industry is facing a variety of challenges, and each issue has a significant impact on the supply chain. Across the industry, shortages in drayage services have led to congested ports and rail terminals. As a result, rates have increased. To solve these problems, drayage carriers need to focus on modernizing their operations.
In addition to the shortage of local drayage drivers, carriers are also facing a lack of supplies such as tires, containers, and parts. These shortages result in further delays for carriers and increase turnover rates. This creates a vicious cycle for motor carriers. To combat this issue, the Biden administration has launched an information request (IR) in the Federal Register. The IR asks for public comment on supply chain issues.
While this crisis has been around for some time, the current state of the supply chain is causing drayage problems and hindering supply chain recovery. For example, the shortage of drivers is not new, but the current shortage is worse than ever. According to Chris Spear, CEO of the American Trucking Association, drayage problems are preventing shipments from reaching their final destinations. Improper documentation, inaccurate payments, and misclassification of products are among the common causes of delays. Read more about freights at https://www.encyclopedia.com/management/encyclopedias-almanacs-transcripts-and-maps/logistics-and-transportation.
Drayage is the transportation of containers from an ocean port to an inland destination. A drayage truck moves one or more loaded containers between inland warehouses, rail yards, and importers. It accounts for a significant percentage of total transportation costs in the intermodal industry. The problem is challenging to solve, and the challenges can be significant. See this service for more details!