Managed Solutions Case Study
The Case for Customer Nominated Trucking: The Fastest Way to Save on Final-Mile Drayage
For importers that book port to door through freight forwarders (NVOs) and ocean carriers, a lack of visibility and control makes final-mile drayage the most complex and costly part of the process. Inland transportation costs tend to be higher, and processes less efficient, when booking port-to-door. A lack of technology and customer support also limits a shipper’s ability to avoid accessorial fees, such as demurrage and detention, which can quickly add up.
In cases of disruption and container diversions, inflexibility in final-mile drayage can cause additional issues and leave shippers with few options.
Solution
Shippers can take control of their final-mile drayage door contracts by nominating a customer nominated trucker (CNT) with their NVOs and ocean carriers. Nominating a CNT establishes a preferred inland transportation provider for NVOs and ocean carriers to work with once containers reach their US port of entry. It also gives shippers the ability to shop drayage carriers to achieve cost savings, visibility, and efficiencies in their final mile.
Why Choose ITS Logistics as Your CNT?
ITS Logistics is commercially set up with most major NVO and ocean carriers in every North American port/rail region to efficiently handle final-mile drayage for customers. As the #12 intermodal and drayage provider, ITS simplifies complex supply chain challenges with strategic execution driven by tech-forward operators, top industry talent, and process excellence.
Gain Access to Capacity & Assets
With ITS as a shipper’s CNT, shippers gain access to better rates and more effective solutions through ITS’s driver pool, distribution space, trailers, private chassis network, container yards, and lane density.
On average, customers who choose ITS as their CNT save hundreds of dollars per container move. For medium-sized businesses that move 5,000-10,000 containers a year, the average annual savings approaches $1 million.
This scalable solution adjusts to volume fluctuations without affecting revenue, specialized labor costs, or head count, often saving customers additional money.
Work with Nearly Every NVO or Ocean Carrier
Because ITS is setup to work with virtually any ocean carrier, shippers can use any NVO or ocean carrier to import or export freight, regardless of door, container yard, or ramp contracts. This gives shippers more flexibility with their providers and more negotiating power for rates.
Manage & Execute with Full Port-to-Door Visibility
ITS’ proprietary drayage TMS (DART) and container management and visibility platform (ContainerAI) serve as the backbone of operations. This tech stack integrates with ocean carriers, terminals, class-1 rail, and trucking capacity to provide shippers with port-to-door visibility into ocean voyages, port charges, rail transport, and trucking milestones. This allows the team to focus on at-risk shipments while providing the highest level of efficiency for others.
Over the past two years, this approach has helped ITS customers save tens of millions of dollars in detention and demurrage charges while empowering shippers to optimize their supply chain processes and drive cost efficiencies.
Why CNT is the Fastest Way to Achieve Efficiency
Nominating a CNT is as simple as informing NVOs and ocean carriers of the CNT. With some ITS customers, this has been as simple as sending a single email.
Results
Choosing ITS Logistics as a shipper’s CNT provides control, visibility, cost savings, and efficiency in final-mile drayage. On average, customers that nominate ITS save hundreds of dollars per container move, leading to annual savings of hundreds of thousands of dollars for medium-sized businesses and even larger savings for high-volume importers.
- One dray provider with capacity in every major North American port and rail region
- Flexibility with contract types
- Improved access to capacity and assets
- Optimized final-mile drayage solutions
- The ability to work with any ocean carrier or NVO
- 100% control and visibility provided through ContainerAI