Drop Trailer Usage: How Does it Work? Is it Right for You?

Utilizing drop trailers as part of your logistics solution can be an effective alternative when logistics operations need a quick solution to serve as warehouse storage during peak volume periods or have a limited number of dock doors for live loading.  In this blog, we’ll cover what a drop trailer solution looks like, what kind of freight is a good fit, when businesses should utilize drop trailers and the difference between live loading and drop trailer pools.

How Does a Drop Trailer Program Work?

A drop trailer program allows loaded trailers to be delivered to designated locations such as warehouses or distribution centers, but they aren’t unloaded immediately. Because the trailer can be unloaded at the recipient’s convenience, a drop trailer program eliminates the need for live loading or unloading, thus streamlining operations.

Benefits of Using Drop Trailers

Drop trailers are particularly beneficial when businesses have limited dock doors or when there is a high volume of inventory arriving at a facility. It gives the receiving facility time to unload the product when needed and (bonus!) uses the yard for storage instead of having to lease additional (potentially costly) warehouse space. Shippers can also mitigate costly detention fees by not making carriers wait long periods for a live unload.

• Handle peak season inventory surges: Leading up to and during peak season, many shippers experience an influx of shipments to build up inventories. If a shipper is utilizing a drop trailer program, the trailers can be delivered, and the warehouse staff can unload when they have availability.
• Overcome limited dock doors: Some facilities may have several shipments arriving at the same time, but only have a limited number of dock doors for carriers to utilize. By dropping the trailer, the driver doesn’t have to wait for a dock door to open, eliminating any potential detention fees.
• Utilize the yard for extra storage: A drop trailer program allows for warehouse yards to be used for additional storage, therefore any product that isn’t needed immediately can be stored in the yard. If there is high-value product in a trailer being stored in a yard, ensure there is sufficient security (fenced in yards, security on site) to ensure safe keeping of freight.
• Reduce freight expenses: Another significant advantage of using drop trailers is avoiding detention charges for drivers who would have otherwise been waiting for live unloads. Detention charges can quickly accumulate and impact overall shipping costs. With a drop trailer program in place, drivers can drop off the trailer at the consignee’s facility and move on to the next assignment, significantly reducing wait times and potential fees.

Live Loading vs. Drop Trailer Pools

When comparing live loading to drop trailer pools, it’s crucial to understand the difference in operational efficiency, as well as the benefits and potential risks to the shipper.

Live Loading:

• Live loading involves loading freight onto a trailer while the driver waits at the consignee’s facility. It offers flexibility in scheduling and allows for immediate delivery.
• This method is suitable for scenarios where a quick turnaround to get product into inventory is required, especially when the consignee’s facility has sufficient dock doors and space.
• While live loading offers flexibility, it can result in longer wait times for drivers and potential disruptions in workflow, leading to increased costs due to driver detention charges.

Drop Trailer Pools:

• Drop trailer pools consist of trailers dropped off at a central location, such as a staging area or dedicated drop yard, to be assigned to specific drivers or shipments as needed.
• Drop trailer pools are beneficial for managing high volumes of goods from multiple suppliers or when distribution centers are nearby.
• By utilizing drop trailer pools, businesses can efficiently manage the flow of goods, optimize supply chain networks and reduce costs associated with driver waiting times and detention charges.

A drop trailer program can be an effective solution for optimizing efficiency and minimizing costs in logistics operations. Understanding the difference between live loading and drop trailer pools, as well as the benefits and risks associated with each, can help businesses choose the most suitable method based on their specific needs.

For more information on how NTG can design and implement a drop trailer solution for your business, click here.