What is Drayage?
Short-distance transportation of shipping containers between a port, warehouse, or rail terminal. In the context of U.S. customs and tariff recovery, understanding drayage is essential for navigating the CAPE refund process and ensuring accurate duty assessment.
Definition
Drayage is the short-distance transportation of shipping containers, typically between a port terminal, rail yard, warehouse, or distribution center. It is the 'first mile' or 'last mile' of ocean freight logistics. Drayage trucks (chassis-mounted container haulers) are a ubiquitous sight at every major port. Rates vary by distance, weight, chassis availability, and port congestion. In high-demand periods, drayage can represent a significant portion of total shipping cost.
How Drayage Relates to Tariff Refunds
Drayage is a logistics cost, not a customs duty, and cannot be recovered through CAPE. However, efficient drayage scheduling can help importers avoid demurrage charges by picking up containers within the free time window after customs clearance.
Example
After CBP releases a container at the Port of Newark, the importer's drayage company picks it up and delivers it to a warehouse in Edison, NJ — a 20-mile trip costing $350 per container.
Frequently Asked Questions
- What is a drayage chassis?
- A chassis is the wheeled trailer frame that a container sits on during road transport. Chassis availability is a common bottleneck in drayage operations.
- How much does drayage cost?
- Drayage rates vary widely by port and distance, typically ranging from $200-$800 per container for local moves. Congestion surcharges can add $100-$300.
Related Terms
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