Drayage operators are under growing pressure from demand volatility, terminal congestion, driver shortages, and shrinking margins, according to a new survey by FreightWaves in partnership with CargoWise Landside. The survey of drayage professionals reveals that relying on manual processes is no longer sustainable, and carriers are seeking ways to adapt.
Operational Challenges Limiting Growth
The survey identified the biggest operational challenges that are limiting growth and profitability in the drayage sector. Demand volatility, terminal congestion, driver shortages, and shrinking margins were cited as the primary pressures. These factors have made it increasingly difficult for operators to maintain efficiency and service levels.
Automation and Digital Transformation Investments
In response, drayage providers are investing in automation and digital transformation. The survey uncovered how fleet size and business mix influence technology priorities. Larger fleets with diverse customer bases tend to prioritize different tools than smaller operators, but the overall trend is toward modernization. The report details where these investments are being directed.
| Insight Area | Key Finding |
|---|---|
| Biggest operational challenges | Demand volatility, terminal congestion, driver shortages, shrinking margins |
| Investment focus | Automation and digital transformation |
| Technology priority factors | Fleet size and business mix |
| Barriers to modernization | Identified but not detailed in survey summary |
| Digital tools benefit | Scaling without adding costs |
Barriers to Modernization
The survey also examined the barriers preventing operators from modernizing their businesses. While the summary does not specify the exact obstacles, it notes that these challenges are significant enough to keep many operators reliant on manual processes. The full report promises to detail these hurdles.
Why Digital Tools Are Essential
Digital tools are becoming essential for scaling operations without adding costs, the survey found. As margins shrink and congestion persists, automation enables operators to handle more volume with existing resources. The report positions digital adoption as a key differentiator for top performers.
Implications for Shippers and Operators
For freight forwarders, logistics managers, and 3PL operators, the survey underscores the need to evaluate drayage partners' digital capabilities. As drayage providers invest in automation, shippers may benefit from improved visibility, reduced dwell times, and more reliable capacity. The findings suggest that carriers who fail to modernize risk falling behind in a competitive market.
Upcoming industry events, such as the Supply Chain AI Symposium and the F3: Future of Freight Festival in Chattanooga, TN, are expected to further explore these trends, though the survey report is available now for download.
Sources:
