Drayage vs OTR: Are they the same thing?

By Sherine Chen Photo: CANVA
Many people think all trucking is the same, just moving goods from one place to another. But in logistics, terms like Over-the-Road (OTR) and drayage actually refer to different types of trucking. While both involve transporting freight, they serve different purposes and cover different distances. Understanding these differences is crucial for optimizing logistics strategies and ensuring smooth, efficient transportation. Therefore, this article will explain the key differences between Over-the-Road (OTR) trucking and drayage, helping you better understand their roles in the logistics and supply chain process.
Drayage refers to the short-distance transportation of goods, typically involving the movement of freight between a port, rail terminal, or warehouse, and a nearby location for further shipping or storage. The term is often associated with containerized cargo that arrives at a port and needs to be transferred to another mode of transportation, such as a truck or train, for the next part of their journey. While the distances are typically short, the process is crucial for keeping goods flowing smoothly between different transport hubs.
For example, when a container arrives at a port, drayage services move that container to a warehouse or rail terminal, preparing it for long-haul transportation to its final destination.
Over-the-Road (OTR) trucking refers to long-distance freight transportation, typically across state lines or even international borders. OTR trucks are used to move goods over hundreds or thousands of miles, making them essential for delivering products from manufacturers or distribution centers to retailers or other endpoints. OTR drivers often spend extended periods on the road, covering vast distances over highways and major routes.
For example, a manufacturer in California may need to ship goods to a retailer in New York. In this case, OTR trucking would be used to transport the cargo over the thousands of miles between the two states. The truck would travel long distances on highways, potentially crossing multiple state borders, to deliver the goods to their final destination, whether it’s a store, warehouse, or distribution center.
While both Over-the-Road (OTR) trucking and drayage are essential components of the logistics industry, they serve distinct roles within the supply chain. OTR trucking covers long-haul distances, moving goods across states or even countries, while drayage focuses on short-distance transport, typically between ports, rail terminals, and nearby facilities. Understanding the difference between these two types of trucking is crucial for businesses looking to optimize their shipping processes and ensure smooth, efficient delivery of goods.
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