No matter how large a port may be, it cannot continue receiving containers without finding a way to clear containers off its docks in a timely manner. A failure to clear freight efficiently can lead to challenges like we witnessed during the pandemic, when port complexes seized up due to backlogs, hampering their ability to process more inbound containers and leading to supply chain disruptions. Because of these challenges, drayage solutions play a significant role in maintaining container throughput across port operations.
Drayage solutions act as a bridge between maritime and inland transportation modes. Consider mega ports like those of Los Angeles and Long Beach, which process 40% of all containers coming into the country. Such high-volume throughput can choke up ports for days without the services of effective drayage providers. Shippers and beneficial cargo owners (BCOs) that cannot process their containers quickly often are forced to pay high demurrage and detention fees.
Navigating such complexities requires the urgent services of experienced and resourceful drayage providers. In this article, we will be emphasizing why their role is so critical to supply chains.
When containers arrive at a high-volume port, they are unloaded and placed in container yards, awaiting clearance and other processing documentation to clear them from the facility. Once that is done, the businesses that own the cargo must arrange for the containers to be transported out of the yard within a short time window, which is why they need drayage services.
The short time window is to make space for other containers coming in, as yard space is always limited. The drayage providers transport cargo within short distances, such as from the ports to warehouses, distribution centers, transloading facilities, or rail yards. The location depends on the business, but it is usually not too far away from the port. This way, the cargo continues moving seamlessly until its final destination.
However, drayage solutions go beyond retrieving containers out of the ports; they also get them into the ports, especially after they have been unloaded at the chosen facility.
High-volume ports are usually located in markets that are economic powerhouses. For instance, California is one of the top economies within the U.S., rivaling the economies of entire countries across the world. It only makes sense that its major ports (Long Beach and Los Angeles) are crucial linchpins for supply chains across the U.S.
This also means that when there are challenges across other ports, such as the Baltimore bridge collapse and looming labor strikes across the East and Gulf Coast ports, a significant amount of that traffic gets diverted to these high-volume ports, thereby leading to congestion, environmental concerns, labor shortages, heightened security risks, and poor navigation of regulatory compliance.
This opens the ports and businesses to many problems. However, both parties can avoid such problems by effectively leveraging drayage solutions.
Throughout 2024, three key drayage solutions will be helpful for shippers and supply chains navigating high-volume ports. These solutions make it easier to move goods even when the ports face challenges highlighted in the previous section. The drayage solutions include:
Logistics technology solutions like transportation management systems (TMSs) and real-time tracking allow for effective scheduling, monitoring, and coordination of all stakeholders moving cargo between ports and warehouses. This allows for much more flexibility, agility, and resilience for the supply chains involved.
Planning allows the drayage providers and the shippers to identify potential bottlenecks, such as a lack of adequate trucks, chassis, or containers, and then develop effective solutions to mitigate them. Capacity planning and management ensure there are no resource constraints.
Drayage providers with experience ensure the entire logistics process runs smoothly. Experienced drayage providers come equipped with expertise, ample resources, and useful relationships that ensure your cargo is transported seamlessly in and out of the ports.
Technology is crucial in optimizing drayage operations, and GSL understands this well. We leverage advanced logistics software, real-time tracking, and automated systems to streamline operations. But we also know that navigating the complexities of high-volume ports will be a struggle without human expertise.
Our experienced team understands the intricacies of port operations, customs regulations, and local trucking networks. Combined with our established relationships, this expertise allows us to resolve issues quickly, negotiate favorable terms, and ensure smooth cargo flow even in challenging situations. GSL is a market leader in drayage logistics throughout the Southern California region.
GSL’s commitment to sustainability is evident in its adoption of eco-friendly practices and low-emission vehicles. By integrating technology with human expertise and prioritizing sustainability, GSL exemplifies a modern and responsible approach to drayage services, setting a benchmark for efficient and reliable logistics solutions in high-volume ports. Get in touch with us today.
Technology is not a new concept or phenomenon, and neither is the transloading operation. This means the transloading operations have witnessed their fair share of technology solutions.
Transloading is currently making a massive comeback, but has always been part of the logistics process. It can be traced back to ancient civilization and the opening of trade routes.
