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Financing and insurance for drayage

Containers between ports, rail yards, and warehouses, with equipment you don't own and terminal rules to follow.

Short answer

Three things usually come first for a drayage carrier. One is paying for day cab tractors that run short, hard miles. Another is cash to carry fuel, terminal fees, and charges for containers that sit, while customers pay on terms. The third is coverage for containers and chassis you don't own, on top of liability and cargo. Drayage also comes with its own paperwork: equipment interchange agreements, intermodal equipment inspection rules, and port credentials. Providers and insurers decide what they offer, not us.

Which financing products do drayage carriers usually look at?

Drayage miles are short, but trucks wait in lines, sit at terminals, and pick up charges that the customer may or may not pay back quickly. That makes cash timing as big a question as the truck.

  • Equipment financing

    Day cab tractors that run short, hard miles. Providers weigh age, condition, and any truck rules at the ports you serve.

  • Factoring

    Importers, forwarders, and brokers may pay on terms. Ask how a factor handles accessorial charges, such as waiting time and storage, on your invoices.

  • Working capital

    Fuel, terminal fees, and charges for equipment that sits, while you wait to bill them back.

  • Line of credit

    A cash gap that comes back every month, if you have the history providers look for.

  • SBA loans

    7(a) loans for trucks, and 504 loans if you are buying a yard near a port or rail ramp.

  • Fuel cards

    Stations near ports and ramps matter more than a national network. We do not currently route fuel card requests.

Accounts receivable financing and asset-based lending tend to suit larger drayage fleets with steady receivables from importers and forwarders.

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Which insurance lines do drayage carriers usually ask about?

In drayage, most of the equipment behind your truck belongs to someone else. Interchange agreements decide who pays when a container or chassis is damaged, and that drives the coverage. Policies vary, so read the declarations, definitions, and exclusions.

  • Trailer interchange

    Containers and chassis taken under an interchange agreement. Read what the agreement requires before you pick limits.

  • Primary auto liability

    Equipment providers and customers often set limits in their agreements.

  • Motor truck cargo

    Import and export freight in sealed containers you didn't load. Ask how the policy treats contents you can't inspect.

  • Physical damage

    Day cabs that idle in terminal lines and park in busy yards.

  • General liability

    Interchange agreements and customer contracts can ask for it even if you have no premises. Read yours.

  • Occupational accident

    Owner-operators leased to drayage carriers often work without an employer's coverage.

Also worth a look: commercial umbrella if agreements set higher total limits, workers' compensation for employee drivers, and commercial property if you own a yard.

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What makes drayage different?

Interchange agreements set insurance terms. Equipment providers such as ocean carriers, railroads, and leasing companies let motor carriers take their containers and chassis under interchange agreements. Many use the Uniform Intermodal Interchange and Facilities Access Agreement (UIIA), which has its own insurance requirements for participating motor carriers. Read the agreement you sign and give it to your insurance agent, because it decides what you owe when equipment is damaged in your care.

Inspect and report the equipment. Before taking intermodal equipment over the road, the driver must inspect the components the federal rules list, such as visible brake components, lights, wheels and tires, air lines, and the upper coupling, and be satisfied they are in good working order. When the equipment goes back, the driver or carrier must report known damage, defects, or deficiencies to the equipment provider.

Port access takes a credential. Anyone who needs unescorted access to secure areas of regulated port facilities must hold a Transportation Worker Identification Credential (TWIC), issued through TSA. Plan for it before you hire drivers or take port work.

Charges for equipment that sits add up. Per diem and storage charges for keeping containers or chassis past their free time can land on the carrier first. Know who pays them under your customer agreements before they become a cash problem. The broader OTR and local haul page covers short-run work in general, and local haul explains the short-haul exception from keeping records of duty status.

Frequently asked questions

What is the UIIA?

The Uniform Intermodal Interchange and Facilities Access Agreement is a standard agreement many equipment providers, such as ocean carriers, railroads, and leasing companies, use to let motor carriers take their containers and chassis. It sets its own insurance requirements for participating carriers. Read the current agreement and its insurance requirements before you sign.

Who pays if a chassis is damaged while I have it?

Your interchange agreement decides that. Coverage such as trailer interchange is a common way carriers meet that responsibility, but policies vary. Give the agreement to your insurance agent and ask what your policy covers.

Do my drivers need a TWIC?

Anyone who needs unescorted access to secure areas of regulated port facilities must hold one, and it is obtained through TSA. Ask each terminal you serve about its access rules.

What do I have to check on a chassis before I leave the terminal?

The driver must inspect the listed components, including visible brake components and trailer brake connections, lights and markings, wheels, rims, lugs, and tires, air lines and couplers, the upper coupling, and the rails or frames, and be satisfied they work before going over the road. Report known damage or defects to the equipment provider when you return it.

How does factoring handle accessorial charges?

It varies. Some factors advance on waiting time, storage, and other charges billed on the invoice, and some advance only on the base rate. Ask before you sign. See factoring.

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