Drayage plays an extremely important role in intermodal shipping. But you can’t always rely on just any company. Choosing the best drayage carrier will go beyond finding the lowest price. After all, each day it takes to receive a container results in longer transit time and more money. Selecting the right drayage carrier reduces transportation costs and ensures a positive experience for your customers. You’ll want to consider the entire service offering to confirm which company is the best fit for you.
What is an Asset-Based Fleet?
Asset-based drayage carriers have their own trucks and chassis and can use that equipment to align with your shipments. These carriers will not have to reach out to others to find trucks or drivers to meet your needs. They already have the correct equipment and can assign them to your supply chain. Some of these asset-based fleet companies may own hundreds or even thousands of trucks and have the drivers required to operate them.
Benefits of Asset-Based Fleet Carriers
Asset-based carriers are generally a reliable option, but it will depend on a few factors. These include how well their capabilities align with the shipper’s freight network and transportation needs. However, most companies have established great relationships with their asset-based provider. They often say they feel comfortable knowing their product will be moved safely with all of the carrier’s resources. Overall, you can expect to receive the following benefits from hiring asset-based fleets.
Reliability and Pricing Consistency
Generally speaking, asset-based fleet carriers carry the reputation of greater quality and reliability than freight brokers. Because they own and operate their own equipment and have their own drivers, they can typically maintain higher standards of quality and service across their entire fleet.
Intermodal Shipping Support
Intermodal shipping is often the movement of freight by both rail and road. It requires containers, a chassis, and a tractor. Because of these requirements, this service is often provided by larger asset-based carriers who also operate as a 3PL. Depending on your network and needs, intermodal shipping can be a cost-effective transportation option. It might also be cheaper and simpler to work with a single company for intermodal shipping instead of separate rail and truckload companies.
Drop and Hook Options
Drop and hook shipments currently make up the majority of Fortune 500 company shipments. This approach reduces dwell time in facilities, which enables shippers to transport more loads more efficiently. Traditional freight brokers and non-asset based carriers do not own a trailer pool needed to operate a drop network.
8 Tips For Selecting the Best Drayage Carrier
When you’re looking for the right company to become your go-to drayage carrier, follow these eight steps.
Look For Partners That Value Safety
You can identify whether a company values safety by looking at the kinds of drivers they hire. Their drivers should be rated by the Federal Motor Carrier Safety Administration. They should also have Transportation Worker Identification Credential cards and clean driving histories.
Check On-Time Delivery History
Time is money! If you are left waiting for your shipment, it is a waste of both your time and money. You should analyze the on-time performance of the potential drayage partner and whether it meets the expectations of you and your customer(s). The reliability and professionalism of the company will directly reflect on you as well.
Consider Their Culture
What are some things that are important to your company culture? For example, is your company driving environmental initiatives? You’ll want to find a partner that shares similar “green” goals. When analyzing their culture, you should compare the company’s mission statements.
Ask About Data Availability
When selecting the best drayage carrier, you’ll want to be sure they can provide as much data as you need and provide it when you need it. Will they be able to provide confirmation of receipt and appointment time quickly enough for you? Will they offer proof of delivery even before one of your customers asks for it? You might also want to check whether they track and trace shipments and alert you when the shipment arrives so it can be picked up on time.
Require Responsiveness
Along with having available data, it will be important to find a company that is responsive. You should be able to count on them to answer your call no matter what it is. Whether you are submitting a rate request, confirming receipt of a work order, or checking shipment status, responsiveness will be important. Their responsiveness and communication capabilities will be extremely important to your success.
Expect Accurate Billing
The last thing you want is surprises on your invoices. Certain on-the-fly changes are inevitable, but a good provider will communicate them quickly, so you are not surprised when you finally receive the invoice. For example, you should get notified of a wait-time charge right away, not after it has been idling for over an hour.
Look for a Well-Informed Company
A true partner is able to spot problems even before they happen. You should be able to count on them to share when bad weather is approaching or a driver might have difficulty getting to the terminal. The best drayage carriers will be able to advise you to pull on a different day to save money or find a street-turn opportunity that can save both of you money.
Choose Specialization to Meet Your Needs
If you will occasionally need specialized equipment, make sure the drayage carrier can provide it. If they can provide it, you will not have to supply it yourself or find one to rent. In addition, if you may need them to accommodate high-value goods, make sure it has the required capabilities and certifications.
The True Cost of Drayage
All in all, choosing a drayage carrier has a significant effect on your bottom line. Remember to take into account more than just shipment rates. Economic factors like supply, demand, distance, time, and local economic nuances will all affect the total cost of a shipment. For example, drayage costs in California or New York will be very different than in Alabama or Louisiana.
