Drayage is an interesting topic these days. While you have some ports working to reduce it in favor of more railroad freight, just as much evidence exists in support of increasing drayage, so that you can further optimize space in ports and yards, in addition to keeping your part of the local supply chain moving.
At NEXT Trucking, we fall into the latter camp.
With today’s technology assisting logistics, more volume and more maximized capacity means more profit — for both carriers and shippers. Drayage is an indispensable part of this equation.
Here are several reasons why we believe drayage will continue to be of particular advantage to the supply chain out of the Port of LA.
1. The biggest is often the best.
It may seem like a cliche, but it’s long been true that, other than first-movers, the biggest organizations (sites, and businesses) are often the best at what they do. By the way, at NEXT Trucking, we’re first-movers :-)
The Port of LA has been the biggest port by cargo volume and container value for nearly the last 20 years. As such, everyone involved in the supply chain here knows shipping. If you’re looking for drayage that’s effective and efficient, and that supports your ongoing efforts to maximize value, LA is the place to start.
Also, consider this -- 50% of all exports from China (the #1 trade partner of the US, by imports) come through the Port of LA, because it takes just two weeks for their ocean freight to reach the West Coast. Be where the action is.
2. The traffic isn’t as bad as they say.
Look, we’re not going to lie to you -- the traffic in the LA metro area isn’t the best. But, according to a recent survey, it’s not the worst either. New York, Detroit, San Francisco, Seattle, and a number of other cities are all worse. Also they are not nearly as warm and sunny.
The important thing to keep in mind here, when it comes to traffic, is what a truck brings, vs. the cars driven by commuters and tourists. Each trip a trucker makes contributes to the pace of business in the fast-moving city of LA (the second-biggest in the country, by far), and beyond.
And, speaking of tourists and the local economy — they bring increased commerce to the region, and with that, an increased demand for effective drayage.
3. More drayage, more often -- means more space for new cargo
Let’s not ignore the basics. Quite simply, drayage keeps your supply chain moving, creating space not only to meet demand but to explore new business opportunities for you and your partners.
There’s a reason much of the news in US cities has focused on local economies. With ecommerce constantly on the rise, and capital being invested in nearby communities and small businesses, local is the new global.
By getting drayage right, immediately after goods come into the Port of LA, you’re serving the economy that’s right in front of you, and establishing a strong base from which you can grow in your intermodal and other logistics goals.
4. On this same note, drayage optimizes your supply chain.
Okay, so maybe we said this already.
But it’s worth repeating. In today’s economy, we can’t afford to waste time and space. Both of these things are obviously crucial to most businesses, but they’re especially precious in the logistics industry. When we waste, a ripple-effect of lost profits and opportunity follows through the chain.
Faster turnarounds mean more met deadlines, fewer fees for late shipments, and more grateful (returning) customers all the way through the chain. Drayage creates space.
5. Moving off-site can open up off-hours opportunities
Although carriers and shippers probably work a more irregular schedule than most other businesses to begin with, the fact stands that a lot of companies near and far remain locked-in to a standardized, 9-5, M-F work day.
For this and other reasons (*cough* traffic *cough*), sometimes it can make more sense, and represent more savings to everyone, to move cargo during off-hours. Draying goods to a warehouse or yard with a potentially more flexible schedule can help keep your supply chain moving all the time -- or anytime.
6. More local drayage can actually increase your intermodal opportunities
Think about it. With drayage, you’re ready to go right now. What do you think that’s going to do for your reputation, when your good record as a local source of on-time deliveries continues to grow?
Add to this the fact that your increased drayage has already further optimized volume and maximized utilization of capacity — chances are, more long-range opportunities are coming, if you want them.
7. The future is in LA. Don’t get left behind.
The traffic really doesn’t slow LA down. We’re the city of dreams.
The local government is supporting innovation and local entrepreneurism (we should know). All of the above points add together to create one simple fact -- this is the place to do business. People across the coast, and well past it, will always need goods. They need them faster than ever before. So keep your own business close to where the action is going to remain for a long time.
Next Trucking is around to help
We’re not actually being biased here. Still, we won’t count this as a reason (unless you really want us to do that). The Port of LA, and the city itself, is our home. We built our business here because we believe everything we just said, and we built the NEXT Trucking app, to serve you from this base.
Do you have questions? Do you need help learning more, about how increased drayage could work for you? Let us know.