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Navigating Port Congestion: 5 Strategies for Efficient Drayage Operations

Published on
September 9, 2024
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By
Nyasia Ebert

Drayage is often overlooked in the supply chain, overshadowed by colossal container ships approaching America’s shores and sleek tractor-trailers pulling up to distribution center docks. But drayage is actually a critical link in an efficient supply chain, and expert drayage providers are essential for quickly getting goods to market, keeping costs down, and optimizing the entire supply chain.

The Impact of Port Activities, Congestion and Volume

The Port of Long Beach reported a huge 41% year-over-year volume jump in June, “driven by continued higher consumer demand, potential tariff increases, and the ever-looming labor contract expiration date for the East and Gulf Coast ports,” Supply Chain Dive said.

In fact, the 842,446 twenty-foot equivalent units (TEUs) handled made for the Port of Long Beach’s busiest June ever. The windfall continued in July, when Long Beach handled an eye-popping 60.5% more imports than the same month in 2023.

Volumes also are up at the neighboring Port of Los Angeles, which recorded its busiest July this year with 940,000 TEUs.

“These goods — think toys, electronics, and clothing — are arriving at the same time as more typical back-to-school, fall fashion, and Halloween merchandise. An early peak season has helped to boost volumes,” Gene Seroka, executive director of the Port of LA, said during a media briefing.

While volume records make for good headlines, drayage providers are working behind the scenes to ensure they have capacity at the ports as they are expected to quickly and efficiently empty the docks, no matter the number of containers coming in and going out.

Thanks to technology advancements, the ports know what’s coming and when it’s coming. It’s the unexpected events, like the Francis Scott Key Bridge collapse, that deliver a whammy to port — and drayage — operations.

The late March bridge disaster forced the closure of the Port of Baltimore and the diversion of cargo to other gateways, such as ports in New Jersey and Virginia. Many of those containers then had to be hauled by drayage providers to end customers or back to terminal yards at the Port of Baltimore.

The ports are working to better respond to both the expected and the unexpected. The Port of Los Angeles, for example, received about $8 million in July to enhance its Port Optimizer. One project is aimed at improving the drayage truck appointment system using artificial intelligence, enabling cross-terminal scheduling and real-time container tracking.  

“Our Port Optimizer data provides stakeholders with up to 40 days of advanced visibility on their cargo, effectively enabling us to see around corners and over hills. This ability to anticipate and address potential issues allows us to resolve challenges much quicker than ever before,” Seroka said.

The Critical Role of Efficient Drayage Operations

Inbound Logistics defined drayage transportation as “smaller, more intricate steps that allow freight to move between transportation modes” and said these moves are “crucial to shipping logistics.”

Short-haul drayage transport is typically completed within a driver’s shift in the area surrounding a port.

“Despite its short distance, drayage provides a necessary link in multimodal transport,” Inbound Logistics said. “It connects trucks, railways, ships, and even air freight, allowing goods to move across countries and continents.”

The containers can actually go much farther inland. With intermodal shipping, a drayage truck can transport a container from the port to a rail yard. From there, it can be transported by rail to major inland hubs such as Chicago.  

Inbound Logistics compared the shipping process to dominoes. Like the first domino in a row, drayage “significantly affects forward operations.”

“If the first domino doesn’t fall the right way, none of the other dominoes will either. Drayage can have the same effect on shipping. If containerized cargo doesn’t move from the port to the next form of transport swiftly and smoothly, the entire supply chain can back up.”

Current Challenges Impacting Drayage

All eyes are on East and Gulf Coast ports, where some 45,000 workers could walk off the job as soon as Oct. 1 if the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) can’t come to an agreement on a new contract.

A strike is appearing more likely, as the ILA has said the two sides are still “very far apart, particularly on economic issues.” SupplyChainBrain said the union has planned a two-day marathon meeting for Sept. 4-5, when it will “prepare its members for a strike.”

If there is a work stoppage of more than a couple of days, it could take weeks for port operations to normalize.

“This means that a one-week strike at the beginning of October would not be cleared until mid-November,” Sea-Intelligence CEO Alan Murphy told Sourcing Journal. “If we get a two-week strike, then realistically, the ports would not be back to normal operations until we are into 2025.”

Reuters reported in mid-August that retailers had been importing back-to-school, Halloween, and Christmas merchandise earlier than usual, largely because of strike worries.

“The import acceleration also aims to avoid shipping disruptions, from Houthi rebel attacks on commercial vessels near the Red Sea, drought-related restrictions on the Panama Canal and elevated hurricane risks,” Reuters said.

5  Strategies to Optimize Drayage Operations

“If there’s a drayage problem, the entire supply chain struggles,” Inbound Logistics said.

That statement sums up just how important the drayage step is in getting containerized goods from the manufacturer to the consumer. The best drayage providers in the business employ five strategies to optimize operations.

Strategic Planning and Forecasting

Strategic planning and forecasting ensure drayage providers have the necessary capacity where it needs to be and when it needs to be there.

“Efficient scheduling stands at the core of managing rapid drayage services,” a blog on the website of Disk, a producer of custom consumer goods, said. “With the increasing demand for quick turnaround times, logistics companies must leverage advanced planning tools. These tools help in predicting transit times accurately and allocating resources effectively.”

Leveraging Technology for Real-Time Updates

Ports, shippers, and logistics providers all want as much information as they can get as quickly as they can get it. For instance, The U.S. Department of Transportation’s Freight Logistics Optimization Works (FLOW) program, launched in March 2022, now has 80 members, “as more shippers seek visibility on containerized freight as a way to combat potential supply chain challenges,” Supply Chain Dive said.

Inbound Logistics pointed out that “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.”

Building Strong Relationships with Port Authorities and Unions

Even with all the available technology, drayage is still a business in which good working relationships are important for smooth operations.

“The fundamental driving forces behind the successful transportation of intermodal freight across North America are the relationships between trucking companies, ocean carriers, railroads, brokers and 3PLs, and shippers,” FleetOwner said.

Diversifying Entry and Exit Points

The Baltimore bridge disaster is a recent example of an unforeseen event forcing shippers and transportation providers to quickly make decisions for moving freight to different entry and exit points.

But infrastructure projects around the country often force drayage providers to diversify their entry and exit points. The Port of Long Beach, for example, posts long-term road closures on its website as notice to drayage providers to route their trucks accordingly.

Implementing Flexible Scheduling Practices

Flexibility is key in drayage scheduling, as adjustments must be made based on real-time port conditions so drivers aren’t sitting and waiting for hours for a container.

But flexible scheduling in drayage operations also “helps capitalize on off-peak hours, minimizing congestion-related delays, and potentially reducing costs,” East Coast Warehouse said.

Partnering with VCPB for Effective Drayage

At VCPB Transportation, we understand the nuances of port operations and offer tailored drayage solutions. We are ready for whatever comes at us, whether that’s a hurricane, a strike, or an influx of imports.

VCPB is an experienced drayage provider, offering:

  • Streamlined and coordinated movements.
  • Expert support for hassle-free port logistics.
  • Real-time tracking for complete transparency.
  • Cost-effective solutions tailored to each customer’s needs.
  • Reliable and professional transportation management.

Trust Your Freight Needs to VCPB Transportation

VCPB Transportation’s extensive network and expertise in port drayage management ensure that containers are efficiently moved off terminals, even during periods of congestion. We ensure trucks arrive on time every time to reduce shippers’ exposure to unnecessary detention and demurrage fees. We know that real-time tracking is of utmost importance, and we keep an eye on all shipments using our state-of-the-art tech stack.

But drayage isn’t all we’re good at. We’re also experts at transloading, expedited shipping, produce transportation, intermodal services, refrigerated trucking, and overweight and oversized freight.

Whatever it takes, we’ve got shippers covered. Start shipping with VCPB Transportation today.

Logistics
Intermodal Trucking
Expedited Freight
Cross-Border
Refrigerated Trucking
Drayage
Alcohol Transport
Transloading
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