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Attention CFOs: Do you know your drayage costs?

CFOs: Do you have a good grasp of your “Port to Warehouse” transportation (drayage) costs?


Having been crushed by 500% ocean rate increases in 2022, most companies now invest substantial resources, at all levels, to secure their ocean transportation contracts…and have seen significant savings. But what about the trip from port to your distribution facility? The cost to travel the last 65 miles can be shockingly close to the cost for the first 6500!


Many do not scrutinize this step as closely as they should. Is it possible you may need to pay more attention to this expense?


At Freight Think LLC, we think so.


Here’s why:


Logistics teams often have strong bonds with certain service partners and believe that the company they’ve used for many years is still the best for them. Having a “comfortable” process often feels like the right thing, but drayage rates skyrocketed in 2022 as well. Do you really know that your current provider is the best fit for your company?


There are 5 questions we ask our clients and support:


Cost: If your current carrier has not reduced its rates by at least 20% in the past year, you may be overpaying. When was the last time you put your drayage volume out to bid?


Competition: Do you have a backup ready to take over if your primary carrier has a change in focus or if you need to flex up during a peak period?


Regional vs National: Local or regional carriers often have the best rates, not having the overhead of big, national players, but some of them can sometimes struggle during peak demand. We can help you navigate the options.


Technology: Are integrated systems the most important thing? Larger national firms can be a great choice for the breadth of coverage, tech-enabled tracking, and system dispatching. But today there are many 3rd party tech companies who are solving the tracking and visibility issues that come dray operators.


The experience we've had with our clients has shown that most believe they are getting the best rate for the service they contract. Yet every review has yielded substantial savings. Some drayage companies have so many ancillary fees that the sum of the accessorial is more than the base freight charge.


We can connect you with the best service providers aligned with your goals, support competition, and keep you highly cost-competitive through the shipping cycles.


We start with free benchmarking. We guarantee savings or we get paid nothing. Just like the clients we serve, we believe in performance-based reward for a job well done!

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