THE STATE OF THE DRAYAGE MARKET

The market is craving some sense of normalcy and carrier relationships and networks available through 3PLs are now more important than ever.

By: Perry Falk, NTG Senior Vice President of Carrier Operations

The supply chain industry has undergone various market-altering events over the past year that have led to shifts in operation and new approaches to shipping solutions. As Senior Vice President of Carrier Operations here at NTG, I have gotten a firsthand glimpse at how innovation and flexibility have been necessary in order to keep up with changes in the drayage market this year. Our NTG team remains committed to overcoming industry challenges during uncertain times. 

State of the Drayage Market & Challenges

The drayage market has been extremely unpredictable over the past year. With COVID-19, the February winter storms across the South, the Chinese New Year and the blockage of the Suez Canal, shippers and carriers have had to remain nimble and efficient in solving shipping issues. Currently, the market is overwhelmed with very minimal capacity to move shipments and complete drayage routes. The industry has quickly learned to brace itself and come to  expect any possible disruption, as any small or large occurrence can have a massive effect on the entire supply chain. The industry expects to see a ripple effect over the coming weeks to months, that will cause prolonged disruptions in the market and alter methods used to complete logistics routes. The market is craving some sense of normalcy, and carrier relationships and networks available through 3PLs are now more important than ever.

Drayage Market Predictions 

Carrier capacity is currently extremely tight, but as vaccine rollouts continue and the country begins to open back up, it is expected that consumer buying patterns will change to reflect the return to normal life. With the increased demand of such goods comes higher shipment volume into United States ports. Towards the end of this year, we hope to see supply chains begin to level back out, expand capacity and experience a surplus of available carriers. It is hard to predict future trends during such an unprecedented time, but we are optimistic that we will continue to push through any external challenges in the upcoming year.

NTG Drayage Offerings

Using a 3PL provider for drayage shipping needs allows for instant adaptation to every situation that may arise. Utilizing our network of trusted partners gives shippers exclusive access and allows an experienced 3PL to come up with creative solutions and resources to find the right carrier for all drayage shipping needs. It has been evident over the past year that 3PLs thrive within uncertain markets because of our capabilities to quickly adapt to external factors, offer additional shipping solutions and have exclusive access to further capacity, all of which are vital to shippers’ supply chains for 2021.