What is a Drop Fee in Drayage and How Can You Reduce Shipping Rates?

Drayage is a term used to describe the transportation of goods over short distances, usually within the same city or region. It is often used to move cargo from a port or rail yard to a warehouse or other destination. In this process, the trucker charges a delivery fee, also known as a bobtail fee, to leave an FCL container in the warehouse and pick it up after it has been loaded and unloaded. This fee covers the delivery of the container to its destination, as well as the unloading and loading process until the carrier comes to pick up the container.

The delivery fee also reduces the total cost of freight, since you won't have to hire additional labor for the loading process. Drop and Hook is a shipping terminology that implies that your trucker delivers a loaded container in exchange for an empty container. When analyzing transport prices, it is important to talk to the carrier in advance to find out what the different rates and costs are, how much you will have to pay and what could be added in the event of delays or changes. The Drop Trailer program refers to the process in which a carrier arrives at your loading point to pick up a trailer that was already loaded before.

In addition, the delivery and collection fee is the cost you pay to the carrier for leaving the container in your warehouse and unloading it. The transportation company may charge a fractionation fee for the chassis to cover the cost of taking the chassis to the container location. A pre-pickup fee is a cost charged by the trucker when he picks up a container at the port but doesn't deliver or load it on the same day. There are other carriers that don't charge a delivery fee, as they offer it as an incentive to attract potential customers. The container delivery fee is the fee you pay to a carrier for leaving your container at an agreed destination.

You can reduce shipping rates and total cost of shipping containers if you allow your carrier to flexibly manage your unloading. The delivery and collection fee leaves all risks to the carrier, making it expensive compared to the delivery fee. To reduce shipping rates, you should look for carriers that offer discounts or incentives for using their services. You should also negotiate with carriers for better rates and terms. Additionally, you can look into using third-party logistics providers who can help you find better deals with carriers.

Finally, you should consider using technology such as route optimization software or automated freight matching services that can help you find more efficient routes and better rates.

Lynette Cariño
Lynette Cariño

Total tv fanatic. Extreme explorer. General travel evangelist. Incurable student. Freelance music nerd. Typical beer lover.