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Shipping Terms

Commonly Used Terms

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Drayage

Did you know?  Drayage operations move 12 million containers annually across Indian ports worth ₹18,000 crores, with freight forwarding companies managing short-distance transport that represents 15-25% of total logistics costs but critically impacts supply chain efficiency.


Service Categories and Operational Scope

Drayage services include port drayage connecting seaports to inland facilities, rail drayage linking rail terminals to customer locations, inter-carrier drayage between different terminals, and shuttle services for regular route operations. Rates typically range from ₹8,000-15,000 for local movement and ₹15,000-30,000 for longer drayage distances depending on container type and route complexity. Freight forwarding companies coordinate drayage through specialized trucking partners while managing documentation, customs clearance, and delivery scheduling to ensure seamless intermodal connections and timely cargo delivery.


Infrastructure Challenges and Solutions

Indian drayage operations face challenges including port congestion, inadequate road infrastructure, vehicle restrictions, and appointment scheduling systems that can cause delays and increase costs. Freight forwarding companies invest in technology solutions including GPS tracking, appointment booking systems, and route optimization to minimize delays and improve efficiency. Partnerships with multiple drayage providers ensure capacity availability and competitive rates while maintaining service quality standards for customer satisfaction.


Cost Management and Service Integration

Drayage costs heavily influence the total logistics expenses, especially for short-distance inland movements where drayage can be 40-60% of the total transportation costs. Freight forwarding companies maximize drayage by using various consolidation services, backhaul coordination, and technology platforms that better vehicle utilization and cut down empty running. Efficient drayage management involves not only coordinating with port operations but also fixing the time of customs clearance and customer scheduling to use minimum detention and demurrage and at the same time carrying out the flow of cargo in an unhampered manner.

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