Breaking Down Drayage Costs: Smart Strategies for Efficiency & Savings

Drayage keeps freight moving worldwide, and in the Pacific Northwest, Terminal Transfer ensures containers get from ports and rail yards to warehouses, distribution centers, or final destinations. It’s the short-haul, high-impact piece of the logistics puzzle—quick and efficient but not cheap. Understanding where drayage costs come from and how to manage them can help businesses avoid unnecessary expenses while keeping supply chains running smoothly.

What Goes Into Drayage Costs?

Drayage pricing isn’t one-size-fits-all. Costs depend on distance, congestion, equipment availability, and terminal fees. Here’s a breakdown of key factors:

• Base Drayage Rate: The starting cost of moving a container. Rates vary based on mileage, fuel costs, and local market conditions.

• Fuel Surcharges: Because fuel prices change, carriers add a fluctuating surcharge based on the current cost of diesel.

• Chassis Fees: If the trucker provides the chassis (the specialized trailer that carries containers), there’s usually a rental fee.

• Demurrage & Detention Fees: If containers sit too long at a port or rail yard before pickup or aren’t returned on time, the clock runs out—and the fees start piling up.

• Port & Terminal Fees: Ports charge for handling, congestion, and storage. During peak seasons, these fees can spike.

• Toll & Infrastructure Charges: Certain routes have additional costs for tolls, bridges, and compliance with environmental regulations.

• Pre-Pull & Storage Fees: Storage fees can add up quickly if a container is removed from the port but can’t be delivered immediately.

Drayage vs. Other Logistics Costs: How It Stacks Up

The drayage portion may seem small when moving a container, but it carries the highest cost per mile. Here’s how it compares to other transport expenses:

• Ocean Freight: 40-60% of total cost | Weeks to months transit time

• Drayage: 15-30% of total cost | Hours to 2 days transit time

• Trucking/Rail: 20-40% of total cost | Days to a week transit time

• Warehousing & Storage: 5-20% of total cost | Days to months transit time

While ocean freight makes up the bulk of shipping costs, drayage can have an outsized financial impact if it isn’t managed efficiently.

How to Reduce Drayage Costs Without Slowing Down

1. Plan Ahead & Avoid Extra Fees

• Schedule container pickups strategically to avoid demurrage and detention charges.

• Coordinate with terminals and carriers to ensure availability before your cargo arrives.

2. Choose a Reliable Drayage Partner

• A good logistics provider navigates congestion, optimizes routes, and helps you avoid bottlenecks.

• The right partner ensures timely pick-ups, preventing delays and extra storage costs.

3. Consolidate Shipments When Possible

• If multiple containers are headed to the same destination, bundling them can lower per-unit costs.

• Less-than-container-load (LCL) shipments can be combined strategically to reduce handling fees.

4. Manage Chassis Costs

• Owning or leasing chassis instead of renting them per trip can cut expenses over time.

• Ensuring chassis availability prevents delays caused by equipment shortages.

5. Optimize Routes & Fuel Usage

• Work with carriers that use real-time tracking and route optimization technology.

• Avoid peak congestion periods to minimize idling and unnecessary fuel burn.

6. Take Advantage of Off-Peak Hours

• Some terminals offer reduced rates for night or weekend operations.

• Off-peak scheduling can help bypass congestion-related delays.

Final Takeaway: Drayage Costs Can Be Managed with the Right Approach

Drayage is a small but essential part of the supply chain. Costs can add up fast, but with the right planning, partnerships, and technology, businesses can keep expenses in check while keeping freight moving efficiently.

At Terminal Transfer Inc., we specialize in drayage solutions tailored for the Pacific Northwest. With a dedicated fleet, experienced drivers, and industry expertise, we make sure cargo moves efficiently from ports to final destinations—without unnecessary costs.

Looking for a smarter drayage strategy? Contact us today to keep your supply chain running smoothly.