Embattled Drayage Providers Struggle to Survive as They Await Recovery in the Market

Of all the many links that make up a global supply chain, drayage is among the most challenging to perform efficiently and profitably.

Drivers who haul containers and trailers over relatively short distances, usually between ports, rail transfer yards and distribution centers, subsist on razor-thin profit margins. They’re at the mercy of economic ups and downs, soaring gas prices, labor unrest at the docks, the need to constantly upgrade equipment, and prehistoric check-in systems that might have them waiting for hours at terminal gates.

Add to that a hyper-competitive landscape that’s driving down rates and causing tensions between drayage companies and shippers, and you have a business that barely gets by on its best day. Currently, the market is still struggling with overcapacity that resulted from a huge influx of trucks and drivers toward the end of the COVID-19 pandemic. Even with rates remaining low, “a lot of that supply hasn’t left th…