5 Common Misconceptions About Hiring an Intermodal Drayage Company

Intermodal drayage is essential for connecting different transportation modes to ensure smooth cargo movement. However, misconceptions about cost, flexibility, and suitability often prevent businesses from realizing their full potential. Partnering with an intermodal drayage company streamlines operations, reduces costs, and boosts logistics efficiency—key factors driving the global intermodal transportation market, which is projected to reach $73.45 billion by 2029.

Here are five common myths to help businesses in NYC make informed decisions and maximize the benefits of intermodal drayage.

Key Takeaways

✔ An intermodal drayage company serves businesses of all sizes, offering scalable solutions beyond large-scale operations.

✔ Flexible scheduling, multiple transport modes, and scalable capacity make intermodal drayage highly adaptable.

✔ Cost savings come from optimized routes, fuel efficiency, and reduced warehousing and labor expenses.

✔ Advanced technology, dedicated partnerships, and strategic terminal locations enhance drayage efficiency.

✔ Intermodal drayage extends beyond port-to-warehouse transport, supporting first-mile, last-mile, and nationwide logistics.

✔ Seasonal demand impacts capacity, rates, and transit times, making proactive planning essential.

✔ Choosing the right intermodal drayage company requires evaluating experience, technology, fleet capabilities, flexibility, and compliance standards.

1. Intermodal Drayage Is Only for Large-Scale Operations

Many businesses assume that hiring an intermodal drayage company is only practical for large corporations with massive shipping needs. This misconception often leads smaller businesses to miss out on cost-saving opportunities and logistical efficiencies. In reality, intermodal drayage services are scalable and can benefit businesses of all sizes.

Why Intermodal Drayage Works for Small and Mid-Sized Businesses

Cost-Effective Solutions: An intermodal drayage company provides flexible pricing to suit businesses of all sizes, helping smaller companies reduce transportation costs. This is an advantage made possible by standardized container shipping, the most cost-effective way to move cargo since its adoption in the 1950s.

Scalable Services: Whether a business requires occasional shipments or regular freight movement, an intermodal drayage company can tailor its services to meet fluctuating demand. Scalable options ensure that small businesses can expand operations without worrying about logistics limitations.

Access to Extensive Networks: Even small businesses can tap into nationwide and global supply chains by partnering with an intermodal drayage company. These providers have established relationships with major rail and trucking networks, allowing businesses to reach new markets efficiently.

How Small Businesses Can Benefit from Intermodal Drayage

Improved Operational Efficiency: Partnering with an intermodal drayage company helps businesses streamline their logistics by reducing handling times and transit delays. This results in faster deliveries and fewer disruptions in supply chain operations.
Enhanced Inventory Management: Intermodal drayage services allow businesses to move products strategically, which reduces the need for excessive on-site storage. This helps in maintaining lean inventory levels while ensuring products reach their destination when needed.

Access to Technology and Expertise: Small businesses benefit from advanced tracking systems and logistics expertise that an intermodal drayage company provides. Real-time shipment visibility and professional support help businesses make informed decisions and stay competitive in their market.

2. Intermodal Drayage Companies Lack Flexibility

Some businesses believe that working with an intermodal drayage company means sacrificing flexibility and control over their supply chain. They assume that drayage providers follow rigid schedules and predetermined routes, leaving little room for adjustments. However, intermodal drayage services are designed to be adaptable, accommodating changing business needs and market demands.

Why Intermodal Drayage Provides Flexibility

Adaptive Scheduling: An intermodal drayage company can adjust pickup and delivery schedules based on seasonal fluctuations, unexpected delays, or changes in demand. This helps businesses avoid costly storage fees and ensure products arrive on time.

Multiple Transport Options: Intermodal drayage services utilize a combination of truck, rail, and other transport methods to create customized logistics solutions. This allows businesses to choose the most efficient routes and modes for their specific needs.

Scalable Capacity: Whether shipping a single container or handling increased volumes during peak seasons, an intermodal drayage company can scale services up or down. This ensures businesses can respond to market trends without overcommitting to fixed contracts.

How Businesses Can Leverage Intermodal Drayage Flexibility

Customized Route Planning: Businesses can work with an intermodal drayage company to develop tailored routing strategies that optimize transit times and reduce fuel costs. These customized solutions help businesses stay agile and responsive to growing demands.

Real-Time Adjustments: Many intermodal drayage providers use technology to track shipments in real time and make immediate adjustments when disruptions occur. This helps businesses maintain consistent service levels and avoid costly delays.

Short-Term and Long-Term Options: Whether a business needs temporary support for a project or ongoing logistics solutions, an intermodal drayage company offers flexible contracts to suit various operational requirements. This adaptability helps businesses use logistics services based on what they need.

3. Hiring an Intermodal Drayage Company Is Expensive

Many businesses assume that working with an intermodal drayage company comes with high costs that only large corporations can afford. This belief often leads businesses to rely on their own transportation solutions, which can be inefficient and costly in the long run. In reality, intermodal drayage services are cost-effective and provide value through optimized logistics solutions.

Why Intermodal Drayage Is Cost-Effective

Lower Transportation Costs: By leveraging rail and shared container loads, an intermodal drayage company helps businesses reduce fuel and labor costs. These savings can significantly lower overall logistics expenses compared to relying solely on trucking.

Reduced Risk of Delays and Fines: With experienced professionals managing compliance and scheduling, businesses can avoid costly penalties related to late deliveries, port storage fees, and regulatory issues.

Optimized Resource Allocation: Intermodal drayage companies streamline operations by consolidating shipments and utilizing efficient routes. This reduces the need for businesses to invest in their own costly transportation infrastructure.

How Businesses Can Save Money with Intermodal Drayage

Minimized Warehousing Costs: By ensuring timely pickup and delivery, businesses can avoid excessive storage fees at ports and warehouses. This helps optimize cash flow and reduces the burden of maintaining large inventories.

Fuel Efficiency Through Strategic Routing: An intermodal drayage company leverages fuel-efficient transportation options, such as rail, to cut down on fuel consumption and minimize emissions, resulting in lower overall transportation costs.

Elimination of Maintenance Costs: Businesses that partner with an intermodal drayage company avoid expenses related to maintaining and repairing their own fleet. It also allows them to focus on core operations and growth.

4. Drayage Companies Are Slow and Inefficient

A common misconception is that an intermodal drayage company cannot match the speed and efficiency of direct trucking services. Some businesses worry that relying on multiple transport modes could lead to delays and disruptions in their supply chain. However, modern drayage providers leverage various strategies to ensure fast and reliable delivery.

Why Intermodal Drayage Is Efficient

Technology-Driven Logistics: An intermodal drayage company uses GPS tracking, automated scheduling, and route optimization software to ensure shipments move efficiently. However, some companies may not offer these services, making it important to contact providers like Drayage Company By Best to confirm availability.

Dedicated Partnerships: Drayage providers have established relationships with railroads, ports, and trucking companies, ensuring seamless coordination and quicker cargo transfers. This reduces waiting times and keeps shipments moving without unnecessary delays.

Strategic Terminal Locations: Many intermodal drayage providers operate near major ports, rail terminals, and distribution centers, allowing for faster turnaround times and improved connectivity to final destinations.

How Businesses Can Benefit from Drayage Efficiency

Reduced Transit Times: By leveraging intermodal drayage, businesses can bypass congested highways and optimize delivery routes through rail and short-haul trucking solutions, resulting in faster deliveries.

Better Planning and Forecasting: With data-driven insights from an intermodal drayage company, businesses can accurately predict delivery timelines and align inventory management strategies accordingly.

Enhanced Supply Chain Reliability: Businesses can count on consistent delivery performance with intermodal drayage services. In the long run, this reduces uncertainties and improves overall customer satisfaction.

5. Intermodal Drayage Services Are Limited to Port-to-Warehouse Transport

Some believe that an intermodal drayage company only handles short-distance transport between ports and warehouses. This misconception overlooks the wide range of services intermodal drayage providers offer, which includes services from first-mile pickup to last-mile delivery and everything in between.

Why Intermodal Drayage Goes Beyond Ports

Comprehensive Logistics Solutions: An intermodal drayage company provides services beyond port drayage, including inland transportation, cross-docking, and distribution support. These offerings help businesses manage end-to-end logistics more efficiently.

Nationwide and Regional Coverage: Drayage providers extend their reach well beyond coastal areas, servicing distribution centers, manufacturing plants, and retailers across the country. This ensures businesses have reliable transport options wherever they operate.

First-Mile and Last-Mile Integration: Intermodal drayage services can include the first-mile pickup of raw materials and the last-mile delivery of finished goods to retail locations or customers. This offers complete supply chain solutions for businesses of all sizes.

How Businesses Can Leverage Intermodal Drayage Beyond Ports

Customizable Logistics Strategies: Businesses can work with their drayage provider to develop tailored solutions that incorporate warehousing, transloading, and distribution for a seamless supply chain experience.

Risk Mitigation in Supply Chain Disruptions: By incorporating intermodal drayage, businesses can diversify transportation routes and reduce dependency on a single mode, helping mitigate risks from port congestion, labor strikes, or trucking shortages.
Increased Access to Capacity in Tight Markets: During periods of trucking shortages, intermodal drayage offers an alternative transportation solution, ensuring businesses can maintain supply chain continuity even when truck availability is limited.

How to Select the Best Intermodal Drayage Company

Choosing the right intermodal drayage company in NYC is crucial for ensuring smooth supply chain operations, cost efficiency, and timely deliveries. With numerous providers offering various services, it’s important for businesses to carefully evaluate their options based on key factors.

1. Evaluate Experience and Industry Expertise

An intermodal drayage company with years of experience understands the complexities of moving freight through ports, rail yards, and trucking networks. Experienced providers are well-versed in navigating regulations, optimizing routes, and managing unforeseen disruptions like port congestion or customs delays. Businesses should also seek providers with a proven track record in their industry to ensure reliable service and efficient freight handling.

2. Assess Fleet Capabilities and Equipment Quality

The right intermodal drayage company should have a well-maintained fleet and the right equipment to handle various types of cargo, including temperature-sensitive or oversized shipments. Modern, well-maintained equipment ensures fewer breakdowns, minimizing delays and reducing the risk of damaged goods. Businesses should inquire about the provider’s fleet size, age, and maintenance programs to ensure they can meet their capacity and operational needs.

3. Review Technology and Tracking Capabilities

Advanced technology plays a critical role in providing visibility and control over shipments. A reliable intermodal drayage company should offer real-time tracking, automated scheduling, and digital documentation to enhance operational efficiency. Businesses benefit from providers that offer transparency by allowing them to monitor shipments and anticipate potential issues proactively.

4. Consider Service Flexibility and Scalability

A good intermodal drayage company should offer flexible service options that can adapt to fluctuating business demands and seasonal shipping needs. Whether a company needs occasional shipments or high-volume transport, the provider should be able to scale services accordingly. Businesses should prioritize providers that offer a range of solutions, such as short-term contracts, expedited services, and customizable logistics plans. If unsure about scalability, connect with trusted providers like Drayage Company By Best to assess what’s possible based on the services they offer.

5. Verify Compliance and Safety Standards

Ensuring compliance with transportation regulations and safety standards is essential when selecting an intermodal drayage provider. Companies must adhere to local, federal, and international regulations, including weight limits, emissions standards, and cargo handling requirements. For businesses transporting cargo or passengers across state lines, the provider must be FMCSA-registered and hold a valid USDOT Number to operate legally.

How Seasonal Demand Impacts Intermodal Drayage and How Businesses Can Prepare

Seasonal fluctuations in shipping demand create challenges for businesses relying on intermodal drayage services. Peak seasons, extreme weather conditions, and industry-specific cycles can cause capacity shortages, rate increases, and transit delays. Understanding how these factors impact intermodal drayage can help businesses avoid disruptions and keep shipments moving efficiently.

1. Increased Freight Volumes Lead to Capacity Constraints

During peak seasons, such as holiday shopping periods and agricultural harvests, freight volumes surge, straining available capacity. An intermodal drayage company may struggle to secure enough trucks, chassis, and rail space, leading to longer lead times and potential shipment backlogs. Businesses should anticipate these challenges by booking shipments in advance and working with providers that have scalable capacity.

2. Rate Fluctuations Can Impact Shipping Budgets

Higher demand for intermodal drayage services often results in increased rates, especially during peak shipping seasons. Fuel costs, driver shortages, and equipment scarcity can drive up pricing, making it essential for businesses to account for seasonal rate changes in their logistics budget. Locking in long-term contracts or securing volume-based pricing with an intermodal drayage company can help mitigate cost spikes.

3. Weather Disruptions Can Delay Shipments

Extreme weather conditions, such as hurricanes, snowstorms, and flooding, can halt drayage operations by affecting port activities, rail movement, and road conditions. These disruptions can cause unexpected delays, impacting just-in-time inventory strategies and production schedules. Businesses should have contingency plans, such as alternate routes or buffer inventory, to minimize the risk of supply chain interruptions.

4. Port Congestion Becomes More Common

Peak shipping seasons often lead to congestion at major ports, slowing down container processing and drayage operations. An intermodal drayage company may face delays in retrieving cargo, resulting in increased storage fees and demurrage charges. Businesses can reduce these risks by diversifying entry ports, using off-peak pickup times, and working with drayage providers that have priority access agreements with terminal operators.

5. Advanced Planning and Flexibility Improve Supply Chain Stability

Proactive planning is the best way to navigate seasonal demand fluctuations without major disruptions. Businesses should communicate with their intermodal drayage company ahead of peak seasons to secure capacity and establish backup solutions. Having flexible delivery schedules, alternative transport routes, and strong relationships with multiple logistics providers ensures greater adaptability when market conditions change.

Frequently Asked Questions (FAQs)

What industries benefit the most from working with an intermodal drayage company?

Many industries rely on an intermodal drayage company to streamline their supply chain operations, including retail, manufacturing, automotive, and agriculture. Retailers use drayage services to move high volumes of imported goods from ports to distribution centers, while manufacturers depend on them to transport raw materials efficiently. The automotive industry benefits from intermodal drayage for the timely movement of parts and components, preventing production delays. Agricultural businesses also use drayage services to transport perishable goods quickly and efficiently, ensuring they reach markets while still fresh.

How does an intermodal drayage company handle hazardous materials?

Transporting hazardous materials requires strict compliance with federal and international safety regulations, and an intermodal drayage company must meet specific handling, documentation, and security requirements. These companies use specialized equipment such as hazmat-certified chassis and secure containment systems to ensure safe transport. However, some companies may not offer these services, so businesses should verify if their drayage provider has the necessary certifications and experience to handle their specific hazardous cargo safely.

What happens if a shipment gets delayed while using intermodal drayage services?

Delays in intermodal drayage can occur due to factors like port congestion, rail disruptions, extreme weather, or regulatory inspections. When a delay happens, an experienced intermodal drayage company provides real-time updates and alternative solutions to minimize disruption. Some companies offer expedited drayage services or rerouting options to keep shipments on schedule.

Can an intermodal drayage company help businesses with customs clearance?

While an intermodal drayage company does not directly process customs clearance, many work closely with customs brokers to ensure smooth cargo movement across borders. They facilitate the transportation of goods to customs facilities, ensuring proper documentation accompanies shipments for faster processing. Some drayage providers also offer bonded trucking services, allowing goods to be transported to inland customs locations for clearance.

What are the key differences between short-haul and long-haul drayage?

Short-haul drayage typically involves transporting goods within a 150-250 mile radius, such as moving containers from ports to nearby warehouses or rail terminals. Long-haul drayage extends beyond this range, often connecting major inland distribution centers to intermodal hubs using a combination of rail and trucking. An intermodal drayage company specializing in short-haul services focuses on quick turnaround times, while those handling long-haul operations prioritize cost efficiency and fuel optimization.

Streamline Your Freight with NYC’s Drayage Company By Best!

Drayage logistics require precision, reliability, and expertise—qualities that Drayage Company by Best in NYC delivers with every shipment. Whether moving cargo from ports, rail yards, or warehouses, our seamless coordination ensures businesses keep supply chains running smoothly. With a commitment to efficiency, real-time tracking, and top-tier customer service, we make drayage hassle-free and cost-effective.

Get in touch today to secure fast, dependable, and professional drayage services tailored to your business needs!