4.0 Drayage Industry Technology Applications

The drayage industry is comprised of mostly small- to mid-sized companies that are under pressure to embrace technology solutions as much as the larger enterprises, specifically the ports and rail lines – although their financial resources are much more constrained. Larger drayage companies do exhibit many advanced technological traits (sophisticated, integrated in-house computer systems, EDI capability and fully functional Internet based tracking applications), but many small and mid sized drayage operators have yet to capitalize on available technological solutions to improve their business.

4.1 Drayage Industry Tracking Technology

The drayage industry extends across the technological tracking continuum. Some drayage companies are extremely automated while others rely on approximation and strict voice communications in meeting their customer’s tracking requests.

Some customers can electronically track containers/shipments through the ship/train interface with accuracy, but there is a lack of consistency in the availability of information on the location of containers/shipments from dock to rail terminal or rail terminal to the unloading point. Even customers who track electronically may use one or a combination of technologies/systems to achieve their particular chassis/container locating goals.

Tracking systems are usually utilized to fulfill shipper requests to provide date location on container movements either at the beginning, midpoint or end of the freight’s movement. Such systems can provide customers the ability to track multiple containers with the same drayage operator in a single transaction.

Tracking systems also provide the dray company with valuable information on driver movements, enabling them to more effectively route and schedule drivers.

One method of chassis/container tracking for drayage operations can be accomplished effectively using a combination of GPS technology and wireless network technology. The customer then may receive updates typically via the Internet, or the customer may opt to access information forwarded to other wireless devices in the field.

This combination of satellite and terrestrial based technologies builds a tracking system that works well both in urban and rural areas. GPS covers rural areas very effectively and is augmented in urban areas by the salient feature that wireless communications requires no direct line of sight to function effectively as does GPS. This is the option of choice for larger drayage companies with more resources to invest in tracking technology or companies with longer pick up/delivery routes that encounter a combination of urban and rural terrain.

Figure 2 illustrates a typical application of these technologies commonly used by the larger drayage companies.

Figure 2 Vehicle/Cargo Tracking Systems

The systems operate in the following manner:

1. Tracking system utilizes the Global Positioning System (GPS) to pinpoint vehicle location.
2. A unit mounted in the vehicle that includes a GPS receiver collects information from the satellites on a periodic basis and utilizes this information to calculate the vehicle’s position, direction, velocity, and time.
3. The GPS receiver in the vehicle transmits this information to a data center via a wireless network.
4. The customer logs on to the Internet where a visual display of the vehicle’s location and progress is displayed on a representative map.

More expensive GPS-based tracking systems are not the only method for drayage-based chassis locating. Less expensive cellular technology may be a more realistically priced option for many smaller operators. Cellular technology (which may use triangulation or mobile proximity) opens the door for tracking solutions for many small to mid size firms that do not have the resources or the need at this time for a full fledged GPS/wireless communication system.

This is another important reason that cell systems have dray applications: the technology inherent with cellular systems allows for position determination in dense urban environments or under loading dock roofs where GPS does not penetrate as effectively because of line of sight limitations. In these urban locations, where much of the intermodal drayage transfer takes place, relatively commonplace cellular phones or pagers can locate vehicles using existing wireless network infrastructures. This data is then centrally collected and then can be accessed by the operators and customers via the Internet.

4.2 Drayage Industry Information Systems

Drayage Industry Information Systems run the gamut from simple paper-based systems to robust, multi-module software applications that provide both the dray company and their customers with accurate, up-to-the-minute information on a variety of inquiries. Smaller drayage operators with only a few drivers will not likely spend the time or resources needed to fully integrate a complicated software system to aid in the running of their operation. Their level of computer usage may be limited to a spreadsheet and an email account.

Larger operators, who have adopted integrated technology solutions, often continue traditional procedures (fax, phone or physical information delivery). Sophisticated systems are duplicated with paper-based, manual systems that mimic many of the duties the electronic system performs more efficiently and accurately.

Larger drayage operators assimilate data/information from multiple, task-specific software modules based on functionality. Dispatching, Human Resources, and Billing generally have their own modules. The usefulness of the advanced information systems used by some of the larger drayage companies is the ability to efficiently move data/information between modules to create useful reports for both internal and external system users. External data gathered from drivers en route from GPS systems, on board computers or digital phones is routed into this system to provide up to the minute access on freight location, driver availability and chassis/container deployment.

The following describes the functions of these modules:

Dispatch

• Track and record driver check in calls, origins, destinations, and estimated time of arrivals.
• Provide quick access to pending/available loads sorted according to your specific criteria.
• Handle multiple stops and drivers, split trips, and review specific container data.
• Provide information such as current locations and status for all drivers and equipment.
• Handle all aspects of trailer and equipment tracking.

Freight Billing

• Automatically create bills from the data entered into the dispatch module.
• Produce timely and accurate freight bills, significantly shortening the time it takes to receive payment.
• Allows for alterations and additions to freight bill information after its initial creation.

While more resource laden, large-scale operations can afford in-house computer software applications, cost has driven some technologically savvy drayage operators, including small companies, to begin to utilize the Internet to access certain advanced software/system applications. Application Service Providers (ASPs) enable small drayage operators to “rent” certain programs or participate in system packages such as Enterprise Resource Planning (ERP) applications for a fee. Typical ASP drayage applications tend to focus on single functionality rather than complete system solutions. These applications may include: on line chassis tracking, database management applications, and electronic funds transfer.

The monthly flat fee covers the hardware, software licenses and network infrastructure to run the system applications. The fee also includes technical personnel required to support, manage, and maintain the systems at a contractually agreed service level. ASP customers can rent services on a per-user, per-transaction, or per-month basis.

The Internet distribution of software/system applications benefit from economies of scale by letting multiple authorized users share the same software product licenses. Subscription pricing means that a drayage operator has no up front investment but pays only for those transactions needed to run their business. It also allows a company to have predictable costs for selected applications, more easily upgrade to new applications, and add new system capacity as demand warrants.

4.3 Drayage Industry Electronic Data Communications

EDI data communications that are widely utilized by ports and rail lines have found less utilization from drayage companies. EDI capability has traditionally been seen in the larger drayage operators, who can invest in either traditional EDI through a fixed line value added network or through a newer web enabled EDI connection, while cost has prohibited EDI participation by smaller drayage operators. The drayage companies that have utilized EDI typically transmit three transaction set types with their EDI partners, including:

• EDI 214—Electronic Proof of Delivery Status
• EDI 210—Electronic Invoicing
• EDI 204—Electronic Load Tendering (Bill of Lading)

Smaller drayage companies with fewer resources increasingly are using the internet to electronically communicate with customers, albeit these communications generally take the form of email in non-standardized formats. These smaller companies have found economical solutions to container tracking, load-finding, and scheduling through internet-based services.

These solutions, along with wireless communications allow the drayage companies to maximize their driver/equipment utilization and to provide higher levels of customer service for both inbound and outbound container moves.

On a related note, the Tacoma-Chicago Research Team is concurrently analyzing outbound cargo and data flows to support future initiatives to connect west coast transactions with east coast destinations (see attachment 1).

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