What is a drayage fee?

Transport is the fees charged for the movement of goods over short distances in order to prepare them for the next stage of the journey or delivery to their destination. Hauling is the transportation of a full container by truck. If you are shipping Ocean FCL (full container load), the base transport fee includes the collection of the container at the port and delivery to its next destination (either to your warehouse or to an intermediate warehouse for transshipment). Freight rates are comprised of a base fare, determined by the weight of the cargo, the handling required, and other factors. Additional fees, such as driver arrest, tolls, and equipment costs, are also taken into account.

While it's not possible to completely eliminate transportation fees, there are ways to reduce transportation costs. Usually, when it comes to pricing the entire truck, a mile-rate, a fuel surcharge, tolls, driver detention, and possibly a few other additional charges apply. However, when it comes to hauling, the typical move focuses less on miles and more on hours. There is no doubt that mileage is an issue to consider, but these types of moves are usually carried out near a port complex and in nature they are shortened by a few kilometers.

However, the time it takes to get in and out of the port complex and sometimes specific terminals varies, so the cost can vary. Transport services are almost always carried out by truck and, since transport is often the shortest link in the supply chain, a driver can carry out several hauling movements in a single shift. Transport is the one-way cost of moving an exhibitor's cargo from their carrier's vehicle to the booth space. As for the rates that apply to a shipment per transport, there are some that are commonly used.

A 3PL partner, such as USA Truckload Shipping, can help you hire a motor-only carrier with the lowest rates to meet your shipping needs. Drayage helps fill gaps in the supply chain by transporting goods between ports, terminals, warehouses and retailers. But the truth is that freight is an essential part of the transport and logistics sector, and it's important to understand the basic concepts of freight rates and how they are calculated. There are no ways to completely eliminate transportation fees, but there are things you can do to avoid certain charges or reduce the amount you owe.

Hauling, often referred to as the “first mile”, is just one part of a much larger shipping process used to move cargo to its final destination. If Flexport manages trucking for your shipment (at origin or destination), you will be charged a pickup charge of 26% of the shipment or a base transportation fee. If the carrier has to pay a toll while providing a transportation service, that fee will be passed on to the shipper. Carriers often complain about the cost of transportation fees, especially since hauling is the shortest part of a cargo shipment's journey.

Lynette Cariño
Lynette Cariño

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